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To: parsifal

The employment contract should not be a suicide pact. Economics 101 also tells you that a company has fixed costs and variable costs. The only variable cost that can be changed immediately is labor. If a companies fixed costs are greater than their income then it should shut down. The minimum wage makes labor costs less variable. This means that a company only has a few choices if it is losing money. Lay people off or shut their doors completely. I think I would prefer a pay cut to going on public charity.


74 posted on 10/28/2009 4:28:45 PM PDT by Pan_Yan (All gray areas are fabrications.)
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To: Pan_Yan

But if wages go up across the board, then prices can too. Better than the poor and middle class using 29.99% credit cards and being on gov’t assistance.

parsy, the deep thinker


75 posted on 10/28/2009 4:37:02 PM PDT by parsifal (Abatis: Rubbish in front of a fort, to prevent the rubbish outside from molesting the rubbish inside)
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