Msg. 02333 of 47202 (This msg. is a reply to
02316 by
Decomposed)
Jump:
WalMart, Target, K-Mart, and many
other stores are effected. Prices
do not double, they go up pennies.
A gallon of milk may go up a quarter.
Other items go up pennies to maybe
a dollar. Yes, some folks will cut
back where they can, but they will
still buy what they need.
re: "...would not an across the board minimum wage hike be system wide?"
In a way. But it would be a system wide minimum wage hike that only affects some businesses - just as a system wide increase in oat prices only affects some businesses. Not every business uses oats ... or has low-end employees.
In your scenario, the amount of money in the system would not change, so consumers would react to the pricier hamburgers by either not buying hamburgers or by not buying other things that they used to buy. The drop in demand for some things would cause those prices to FALL, offsetting the price increases that took place in businesses affected by the minimum-wage hike.
The bottom line is that you can double your store's prices but if folks don't have more money, they won't buy from you. If EVERYONE raises their prices, then there still won't be any more money and folks will buy less than they used to. Some of the businesses will have to lower their prices to lure customers back. So you really CAN'T have prices go up on everything. Not without there being more money to buy everything with.
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