• zarkanian@sh.itjust.works
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    2 months ago

    The area I lived in voted for a minimum wage increase several years ago. Tons of people were saying that it was a bad idea, because the businesses would just raise prices on everything.

    Minimum wage increase passed. Prices didn’t change.

    I think this is because minimum wage increases don’t happen in a vacuum. There are other things to consider. If your company raises prices, I’m going to go to a competitor who doesn’t. The idea that “they’ll just raise prices” assumes that all businesses will react to a minimum wage increase in the same way, and that’s not the case.

    • EchoCT@lemmy.ml
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      2 months ago

      Perhaps I was being overly cynical but last years grocery hike was all of those businesses acting in concert. Which I’m sure is illegal for everyone but the rich…