General Discussion
In reply to the discussion: So, about that Amazon wage hike that Bernie is responsible for... [View all]JCanete
(5,272 posts)people can afford. As a company you have to balance the number of customers with how much you can charge them. So if there are potential customers without enough money to buy your products, you have to consider what is the most cost effective path going forward...a higher price that cuts out consumers, or a lower one that has a bigger consumer base.
So no, the only way that prices would rise enough to cover those costs is if people still had enough money(and wouldn't balk at the sticker price) to buy those products and goods at the new price. Again, and I don't know how you could dispute this, these companies will already charge what they can get for their products, so if they could squeeze you more now, they would. It is what you are willing and able to pay that determines what they will charge.
Yes, inflation happens, but its slower than you suggest, for the reasons I stated. Wages will increase slowly up the chain as employers seek to hold onto workers, but as the EPI study does point out, the loss of profits these companies experience from the wage hike is partially(not fully) mitigated by worker retention, so that even to maintain the same profitability companies don't really have to pass all of the hike onto the consumer.
Wow, newsflash, corporations and businesses fret over having to pay their workforce better. Threaten the public with rhetoric.
Edit history
![](du4img/smicon-reply-new.gif)