On 9/28/05, Dana <[EMAIL PROTECTED]> wrote: > it's a reasonable argument. However #2 is most likely to be chosen by a > small business, #3 by a large manufacturing business. I guess my point is > that #3 happens anyway. Concern over #2 could be answered with an exemption > for very small businesses (though I don't think this particular measure has > one). Let's face it, given that this is a system with more than one equation > (a cost equation and a demand equation) Walmart is not going to go away > though. It seems likely that demand will increase, possibly more than cost. > So I think such employers will choose #1....
So based on these assumptions the wildly oversimplified effects of a Living Wage increase could then be: Manufacturing's going away to China (#3) and that's nothing to do with the Living Wage issue and nothing we can prevent anyways. Small local business owners may choose just to hire less people (#2), and/or just do the work themselves. So not only are people are out of a job, but they don't have money to spend locally and enable that multiplier effect - buy more things, etc... Larger corporate giants like Walmart will eat the costs (#1), pay people a smidge more (still not really enough to live on), and Walmart takes the profits back to their headquarters, making a stockholder in another town wealthier. Essentially making the rich richer somewhere else and removing wealth from the local economy. Then in the long run the small local businesses eventually shut down and Walmart's all that's left. -Cameron ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Purchase RoboHelp from House of Fusion, a Macromedia Authorized Affiliate and support the CF community. http://www.houseoffusion.com/banners/view.cfm?bannerid=59 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:175442 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
