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"but- But- inflation go brrrr 🥺👉👈"
(lemmy.world)
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this post was submitted on 31 May 2024
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A Boring Dystopia
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Ooooh, now plot the avg wage across this period. Y=min wage.
I was talking with a coworker the other day and they were talking about how raising minimum wage causes inflation because businesses will raise prices to offset to rise in labor costs. I asked if he thought inflation had gotten bad in the past 5ish years in particular. He said of course. I said well federal minimum wage hasn't risen since 2009, which was 15 years ago, so it sounds like inflation is gonna happen regardless of wages and is based on the capitalistic goal of infinite growth, so maybe we should raise minimum wage so lower income people have a shot at affording basic necessities.
He just said no, then inflation just would've been worse. It's maddening.
The response to this is that inflation is a market force working against the downward pressure of demand. There is a limit to the amount prices can go up before people stop buying altogether.
Another inflationary force is greed, funneling additional profits into the pockets of the 0.1%.
Let the inflation due to minimum wage be X, and the inflation due to greed be Y, and the maximum total inflation be Z. X+Y=Z
Of course there are other variables, but in a general sense, if X goes up, Y must go down. If X does not go up, Y does.
So yes there will be inflation, but increasing wages takes more money from the ownership and puts it into the pockets of the bottom 99.9% where it will do far more good.
And in case it wasn't clear, this is precisely why the oligarchy opposes increasing the minimum wage. It has nothing to do with inflation, and everything to do with they make less money.
Except that they have studies that prove that they make more money when they increase wages. Tons of em since the '70s have shown that putting more money in the hands of the poor just means that the rich get to skim off even more money. They oppose thriving wages because they want suffering.
It really is absurd... It's like basic fucking logic... You have more money, so you have more money to SPEND. Who benefits from more spending? Those that own the things we're buying!
But no... I need more more more more and fuck you for wanting a normal life. Daddy needs another private island. Git Gud suckers, just be a CEO!
You're confusing a rising tide with a water hose. We absolutely know that increasing wages is good for the economy, but that helps everyone. Oligarchs benefit financially from poverty, even if the economy suffers. As you said, they want suffering, because it allows them to exploit people. Capitalism is the idea that one with means can leverage their position to capture disproportionate value from effort of others. Don't confuse capitalism with the economy. Capitalists always make money, and they don't necessarily make more money when the economy is thriving.
Not when those items are necessities, like food. Damn us poor people and our need to...checks notes...eat.
McDonald's is not a necessity. The price went up for one reason only: people will pay it. Is it that hard to make a hamburger or go to a basic deli? You can get a better sandwich and drink at the supermarket.
It absolutely can be in food deserts, and the food deserts are growing.
A desert full of food and it's growing? Doesn't sound like a problem to me!
(I understand what it really is) :P
I'm not talking specifically about McDonalds.
Up here in Canada, One of our largest retail grocery chains has been under fire recently for those same practices. That's more what I'm referring to.
They will charge what people are willing to pay, and not a dollar more. That number changes based on a wide variety of factors, but you're right that there is a baseline necessity to eat. The thing is, food and shelter are the last lines, and we're already seeing the strain on those.
People aren't going to the movies, they're not buying cars, they're not going on vacations, and small businesses everywhere are suffering. So now, finally, the grocers and restaurants are coming under fire because they have hit the upper limit of what people will accept.
Watch as they all "find ways" to cut costs and improve their value proposition. They will try to convince you that they are in this with us, but there will be a trade off. Buy in bulk, offering the same prices that you used to get buying normal quantities. Join our discount club, with recurring fees and personalized advertising using your spending habits. Get the store brand, which is expected to be of lower quality so you can't complain when your breakfast cereal is mostly pulped cellulose.
I am the laziest man on earth and even I gave serious thought to planting a garden this year...that's where we're at.
I have whatever the opposite of a green thumb is. We do a fair bit of cooking but rent a pretty small apartment. We started growing our herbs. The basil isn't doing so hot (I think some asshole bugs were eating it while it was outside so we brought it in) but the rosemary is doing great! I also have a peace lily that I nursed back to health somewhat.
If I were in the position to start a garden, I would pick some pretty easy stuff to start with. A lot of vegetables are pretty set and forget so long as you defend them from critters at the start and keep bugs away. The most important factor is to grow stuff you actually want to cook and eat. Maybe make your very own vegetable tier list and then find out the difficulty level of everything that's in your S, A, and B tiers. Then just make a solid attempt at one or two as a practice run (or proof of concept) before investing next year in what you wish you'd had this year. If dipshits could figure it out 300 years ago, then I'm sure you could do a passable job learning it and executing it in your spare time with the power of virtually all human knowledge in your pocket.
Pathetic bootlicker won't accept the facts when they hurt his master...
Are we supposed treat these people as adults?
To be fair states, and even cities have their own minimum wage too, and those have gone up. Federal minimum wage is just the base line.
Not for citizens in 20 states, and 2 territories. The cities may have something, but since those places are all regressive overall, I doubt it.
That's true, but the baseline should be able to afford food and housing somewhere. Currently it affords that precisely nowhere. As a result, multigenerational homes are becoming more prevalent, children are working to help support households more, and single income families are nigh extinct. My wife and I are DINKs in a 2 bedroom apartment because the cost of houses is absolutely insane here. It's hard find even a fucking townhouse for less than $500k lol. Most single family homes are at least $700k. At this rate, we'll see polyamory and polygamy become more accepted because it's gonna get to a point where only working throuples can afford shit anymore.
This is something that I actually interesting culturally. Here in the US multi generational family homes are essentially considered a bad thing, but down in Costa Rica where my family is Multi generational homes are maybe not a goal per se, but something expected as your parents age, or as your kids grow up. You’ll grow up, move out for school, to get a job, and as you get older you’ll try to stick next to your family, and eventually your parents move back in so you can take care of them.
Obviously doing this out of necessity is bad, but a fun culture difference to observe.
Honestly, I think there's 2 ways to think through this. Way 1: Magically the minimum wage is increased, and everything about the legislators stays the same.
This would increase inflation, as what's causing inflation is the lack of legislation and enforcement. Thus allowing companies to raise prices and profits unchecked.
Way 2: The legislators change in such a way that it's logical and possible to raise the minimum wage. Also logically other legislation would be passed to reduce the unchecked greed.
This would not increase inflation on it's own, and likely would keep it to a healthy minimum.
I think most who complain about the minimum wage talks can only imagine the first way.
I'm not entirely sure why minimum wage hasn't been anchored to inflation, but I'm sure there must be a good reason because I'm not exactly an economist and there's no way that smarter people than me haven't thought of that.
Actually, this graph does display the % average wage increase!
It’s the line where the x axis is.
This companies are able to generate billions in profit every quarter, let alone every year. They have also been reporting record breaking profits quarter after quarter for the past several years. I'm pretty sure the 17 y/o Burger flippers aren't the problem here.
https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/gross-profit
[1]Average franchise profitability at Burger King rose nearly +50% last year (2023) compared to 2022
https://www.macrotrends.net/stocks/charts/SBUX/starbucks/gross-profit
I wonder how da fuq did McDonalds think that this is okay?
Setting aside all considerations of ethics or morality, from a pure greed standpoint even a very naive person could realize that if you squeeze the sheeple too much they may choose to go elsewhere rather than continue to rely on you for easy comfort food.
Do they think they have a monopoly on the market? Even just from the fast-food burger places that were included in this graphic, there are multiple cheaper options - Burger King and Wendy's - plus Arby's & Taco Bell and Chick-fil-a are somewhat similar.
Do they think that people will suddenly not care about where their money is going? That strategy tends to work when you squeeze (bleed) them slowly, but this kind of a sudden spike carries the risk of waking them up to how much eating there is costing them - and once they are gone, it would be very hard to attract them back.
So this strategy even looks to be detrimental to the company of McDonalds, even if good for the short-term stockholders & CEO before they jump elsewhere.
If I had to guess it would be for 2 reasons, humans don't like change so people that frequently go to McD will still go, and that all humans need food and a bonus of less people know how to cook
It's a scary thing to think these companies can just get away with shit like this but at the end of the day until we as a society boycott them - and I mean a legit boycott, not some 3 day reddit boycott - they'll find any excuse to fuck us for profit
We're also in a society now where 2 people or 2+jobs are REQUIRED for a "normal life" unless you're a tech or finance bro. People just don't have the energy or time to cook, fast food is often "on the way home" and saves well over an hour and effort.
I'm "lucky" that I'm single, in that I can cook a weeks worth of food in one day and there's no one to complain about "this again?" In literally every other respect being single in this society for over a decade sucks.
People are resistant to change - like inertia - but if pushed enough, they will. Burger King & Wendy's only went up 55% whereas McD went up twice that at +100%. McD could have kept their prices flat and gained business from them, remaining within their brand as the "cheap fast-food" option, but instead they seem poised to lose it? Well, I guess we will see.
Yeah, it is scary to see just how evil they - b/c with profits like you showed, they did not have to increase them all, so the fact that they not only did but did by that much is somewhat shocking.
Right there.
Double your prices, lose 49% of your customers - you’re winning. And restaurants are less busy? Fewer staff needed? Winnning ($$$$)
It's the black line on the bottom
random images found online (couldn't find one for individual/personal income & wage, only household). i could plug it into matplotlib but i'm lazy