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> Can someone explain to me how this works?

It doesn't work.

Labor is a tiny fraction of the total cost of most products. We could double wages at the low end ($30 minimum wage) and not affect inflation significantly.



Source? In particular for restaurants and other businesses that rely on service jobs, I've typically read the opposite.


I said "products". Service industries with razor-thin margins like restaurants are more affected by labor costs, sure.


To be fair, service industries are the most likely to pay low wages


I'd say that a service industry that can't pay workers (primary producers of the service, that can't be replaced) a "living wage" is exploitative and should probably be reworked or disbanded.

Do we want to be cooked for and served by folks who can't make ends meet? Do we want our kids taught by folks who can't afford to buy a home?


Would still love to see a source if you have one!


I'd love to, but my search fu has failed me this morning. (All I could find were corporate blogspam and investopedia definitions and such.)

To be perfectly frank with you, I was just talking out my behind above. I view economists as the modern equivalent of court astrologers, and having no respect for their "science", I feel no need to honor it or refer to its conclusions. I believe that econ papers say whatever the person paying for them wants to hear, so I personally don't see any point in referring to them.

Sorry for trolling.




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