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Reply to "A 21st Century Bill of Rights"

quote:

You lost me with this one.
Bad rationale.
When I paid a mimimum of $5/hour, the law required $3.75, 1/3 more.
I thought I was a 'good guy'.
The real reason I paid that amount is because I knew I would get 'garbage labor' at that rate.
Your rationale says raising the minimum wage makes it harder to find work.
Surely there is an oxymoron for that.


PEACE

Jim Chester


Actually HE MAKES PERFECT SENSE.

Mr Chester - what would you do as a CONSUMER of raw materials that you later assembled into a finished product?..........you purchased FLOUR, EGGS and some POWERED CONFECTIONERY SUGAR to make $0.99 cupcakes. After seeing how prosperous your business has grown over the years the guy who sold you the powered sugar for years began to make the case that he had a RIGHT to earn money for his business at a rate commensurate to YOUR success. He first doubles his price one year. No problem because you are able to accept this increase into your MARGIN. That next year he tries to DOUBLE it again. This price increase begins to jeopardize your ability to continue to sell your goods at $0.99. All the while a DIFFERENT sugar processor has been knocking on your door who is based in the next town. You resisted her invitation for business because of your loyalty to the other guy. Now that THE ORIGINAL GUY'S PRICES are at a point at which they both are - far beyond the MARKET VALUE of the benefit that they have to you - as the powered sugar is only a decorative toping - not a core ingredient to the finished product AND you have a secondary alternative in this other sugar processor - who's prices are half as what you are currently paying.

JWC - WITH RESPECT TO THE ORIGINAL SUGAR PROCESSOR - what are the chances that his INCREASED EXPENSE is going to allow him to continue to have a relationship with YOU?

There are 3 likely outcomes:

1) Drop the current supplier and go with the new, lower cost provider
2) Stop using the powdered sugar because it is a decorative add on and the high price has now beyond the UTILITY of the good
3) Go back to the original supplier and tell him to DROP HIS PRICES or you will do #1 or #2

So you see JWC - the LABOR RATE as was articulated above is a function of THE VALUE that this unit of labor has on the process and the CONSUMER of this labor.

To believe otherwise is to totally ignore YOUR OWN CONSUMER BEHAVIOR.
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