Re: Will Biden raise the federal minimum wage from 7.25 USD per hour to 15 USD?
Will the US business suffer from the increased labor costs?
Will Biden and the democrats keep their promise?
Stupid question:Will the American working class buy more Bitcoin,if they have bigger salaries?
Some economists say that the current federal minimum wage is way lower than the labor productivity,so increasing the minimum wage will lower the profits of the business,while boosting the consumption of the working class.
That is pure populism. The minimum wage is raised, but the costs of everything else rises proportionally, if not more than the minimum wage itself. I mean you can increase the minimum wage, but it doesn't mean you are increasing the purchasing power.Will Biden and the democrats keep their promise?
Stupid question:Will the American working class buy more Bitcoin,if they have bigger salaries?
Some economists say that the current federal minimum wage is way lower than the labor productivity,so increasing the minimum wage will lower the profits of the business,while boosting the consumption of the working class.
Furthermore I will give another example: if I'm a business owner and have to raise my employees' wages I will raise my services costs to customers so I can dilute this *loss* and keep my profit intact. In the end the customers (who are also earning 15$ hourly) will have to pay more for the same services they were paying cheaper before.