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To: Bryanw92

No need for a supply and demand lecture. Are also familiar with the concept of elasticity of demand and diminishing marginal utility? It may be more than a casual Google read.

There is a limit to what any consumer will pay and their are limits to how much they will consume. Some jobs do not exist at higher wages because the higher wages causes the services or goods to priced too high. Therefore higher wages may help in attracting workers but it will also limit the number of jobs available. The equilibrium level may be an overall lower level of employment.

This owner would probably pay more if he could afford to. Why would he give up sales and profits if simply raising wages was the answer?

Why is it that with all of the jobless people we have in this country jobs go unfilled?


46 posted on 07/08/2016 11:30:14 AM PDT by FreedomNotSafety
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To: FreedomNotSafety

If a product demand goes down to a point where consumers are unwilling to pay enough to cover the prevailing wage and other costs of production then that product is unnecessary and should go out of production. The capital realized in liquidation should be used to start another more fruitful enterprise.


48 posted on 07/08/2016 12:05:51 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: FreedomNotSafety

>>Why would he give up sales and profits if simply raising wages was the answer?

Read the article. He’s already giving up sales and profits by not having sufficient staff.


49 posted on 07/08/2016 12:14:39 PM PDT by Bryanw92 (If we had some ham, we could have ham and eggs, if we had some eggs.)
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