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[–] FreshieD 3 points 28 points (+31|-3) ago 

That assumes that the cost of goods is directly tied to the cost of labor, which isn't the case. The relative increase in prices is less than the relative increase in purchasing power that occurs with a higher minimum wage.

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[–] 123_456 6 points 7 points (+13|-6) ago 

That assumes that the cost of goods is directly tied to the cost of labor, which isn't the case.

Nope. It has a direct connection. You're 100% wrong. Labor is the main cost to a business.

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[–] Fitblue 0 points 6 points (+6|-0) ago 

I've learned this the hard way but when you talk absolutes about a subject you're not a field expert on, you come off as ignorant.

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[–] Yttrium 0 points 3 points (+3|-0) ago 

I could be wrong, but I think what he was saying is that the cost of labor and the cost of goods do not share a 1:1 relationship, or a type of linear relationship. Generally, the price of the good is comprised of more than just the cost of minimum wage labor. Examples: Buildings, location, anything that can be depreciated over the lifetime of a company and, while being used by employees, would still exist in some context without the workers.

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[–] PassingShip 0 points 1 points (+1|-0) ago 

Wages aren't the only cost of labor, though.

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[–] EllenPaosEgo 0 points 0 points (+0|-0) ago 

If it had a 100% connection our wages would have gone up to this 15$ minimum a while ago. Prices HAVE gone up, the cost of living has skyrocketed, but our wages have become stagnant.

[–] [deleted] 0 points 2 points (+2|-0) ago 

[Deleted]

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[–] mamwad 0 points 1 points (+1|-0) ago  (edited ago)

But, countries with higher minimum wages don't see a 1:1 rise in the cost of consumer goods. We do see an increase in real wages when the minimum wage is increased.