Quote:
Originally Posted by iggy_oi
Why would everyone's purchasing power decrease? Seriously, wouldn't the invisible hand that everyone claims regulates the economy take care of this imbalance? With people losing jobs all over the place, prices would drop would they not?
Why is it that so many in this thread who claim the minimum wage being raised is uncalled for because wages are figured out and corrected by the markets, don't believe in the markets also correcting for other economic factors?
In this thread people have argued that rent will or could go up because of this increase, really? So all these landlords who can't find tenants for their rentals now are going to all of the suddenly think that asking for more because people got a raise is going to get tenants to sign a lease? Right....
Some have also claimed the the price of everything will go up, why should this happen anywhere other than at businesses that are paying minimum wage? Around 18% of Albertans make under $15/hour, why is this going to affect the price of something like a trip to the dentist? No one there makes less than $15/hour, is the dentist frustrated because his Big Mac is more expensive so he's goona take it out on his patients? Guess what? He could have done that anyways. Ok so let's say that dentist is getting charged more by one of his suppliers, so he wants to raise his prices because of that, take benefits out of the equation, if someone doesn't want to pay his new price, he will lose business if patients can find someone cheaper. Consumers actually using their buying power wisely will grow their buying power, not keeping minimum wage low.
|
Everyone's buying power decreases because every business now has higher costs. Those increases get passed on to everyone. Companies won't allow additional taxes and expenses to eat into their profits.
No, people losing their jobs does not mean prices will drop. That's ridiculous. Those jobless people CANT buy as much as they used to (aka lower buying power) which means a business has less revenue.
With less revenue, they must find alternative ways to maintain shareholder value and equity. This results in raising their prices for consumer goods, meaning you pay more for them (aka everyone's purchasing power)
Rent will go up, because landlords operating costs went up in the form of higher property taxes & higher utility bills.
You're diluting the issue. The carbon tax, combined with the increased business taxes, combined with the increased operating costs, combined with the increased property taxes is not business friendly. It will create a welfare state.