There's no hole in my argument.  The prices are are also a function of the 
profit margin.  Human labor is a commodity, and the higher prices may or may 
not reflect that fact.  It's just another part of the equation.

- Matt

----- Original Message ----- 
From: "Gruss Gott" <[EMAIL PROTECTED]>
To: "CF-Community" <[email protected]>
Sent: Wednesday, December 21, 2005 11:59 AM
Subject: Re: Whos been walking to work past 2 days?


>> Matt wrote:
>> Now everyone in Happytown works at Company A and gets paid what
>> Company A tells them they can be paid - minimum wage.
>
> Here's the hole in your argument: Now that "A Co" is paying higher
> wages, it must raise prices or subsidize the higher pay with other
> stores.  Which means that:
>
> 1.) Now other businesses can compete with A Co because their costs are
> equal or less than A co, or
>
> 2.) Other businesses compete with A Co by offering better service due
> to their more highly paid, but better, workforce, or
>
> 3.) Other towns now pay higher prices or their wages drop because A Co
> is subsidizing Happy Town.
>
> Unions, by asking for higher wages, lower your wages or raise your
> prices.  Unions seems to think that there's some money tree out there
> and they just need to pick more dollars.  There isn't.
>
> Higher wages mean higher prices.
>
> 

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