06-10-2016, 01:43 PM
(06-09-2016, 04:12 PM)Beaker Wrote: Your not looking at wages on a National scale. You are looking at them on an individual company scale. Employee salaries and wages usually make up the single largest percentage of a company's expenses. If you increase wages 33%....and wages make up say 60% of a company's expenses...then they are going to raise their cost of goods sold to maintain their current profit margin.
Actually labor costs are rarely the top expense for corporations. this is only true in the service industry. In retail sales overhead and inventory are the largest expense. In manufacturing it is material and overhead.
And just because a minimum wage earner gets a 33% raise that does not mean a manger making $60K a year is going to get a $20K raise. Minimum wage earners do not account for a major portion of all labor costs.
