Well, then it stands to reason then, that if the later fails, the former must also fail.
If the people fail to be worse off in general then the government should disallow people to make contracts freely? Sounds reasonable.
If said another way: if a bigger government, or a government with more control, or as a government displaces freedom (all the same thing) made peoples' lives better then I'd be all for it. But in every case, and by general theory, and in this particular case, that's not true. We know that they are, in general, worse off in this case because you are asking the government to increase it's control over possible free contracts more than it already is. If your claim worked, then as the government increased it's control over private contracts peoples' lives would get better and better. But as you admit, and the reason for further loss of freedom, is because you perceive things are getting worse.
In other words, you're always righter than me, because of your moral understanding and virtue.
It's only true if my morals are correct. If you want to see between us who's morals are correct, you tell us your objective standard for your morals and we'll compare them to mine.
But, yeah, if it turns out my morals are correct then I'll always be right and you'll always be wrong.
In the end what we find is that not having an objective standard for morals means you can never be sure if any policy you support is right or wrong.
You are, simply and thoroughly, and even objectively mistaken. Your problem is not truly with me, but with math itself.
Really. Objectively mistaken? By math? Does increasing costs make a product more expensive or cheaper?
That was the whole point of my last. The demand curve doesn't allow it. The demand curve doesn't automatically allow them to raise prices just because their marginal costs have increased.
Then you've just given away the farm. If marginal costs increase, then they will have to respond somehow. In a highly competitive market, that doesn't include reduced profits enough to ignore the increase in costs.
I assume that since you emphasized "only", you are conscious of the fact that you asserting something rather tenuous.
No, I'm stating business reality. In a highly competitive market, the only advantage one has over their competition is to control costs.
Often those costs can't be controlled.
If the government raises costs by force, then, yeah, businesses can't control that. If there are other costs that can't be controlled apart from that, it means the business is failing... according to math.
The government isn't going to raise all costs across an industry.
I wasn't clear. I meant all business would have their costs go up across the industry.
And I don't know what you mean by a "highly competitive market", but the fact that many of the companies paying minimum wage are also very profitable demonstrates that they could, indeed, pay more to their employees.
This is only true in industries with little or no competition. In highly competitive markets, very profitable means "able to not change what we are doing and stay in business for the foreseeable future" (and it's not too easy to see very far into the future).
And don't forget, all monopolies exist by government protection. So don't be too quick to desire that businesses have low or no competition just so they can have profits to spread around sans a change in the way they do business.
I'm not sure what a "superfluous profit" is versus any other type, but any profit is profit enough to motivate a business venture.
Superfluous profit is profit made that can be spent on higher costs without changing the way one does business.
That's simply in blunt contradiction to the facts. As I've pointed out several times in this thread, in literally half of the cases where we've raised the minimum wage, the unemployment rate began dropping afterwards. If significant layoffs occur after minimum wage hikes, it appears to be too small to detect.
You failed the math portion of this conversation. The problem of employing people that cost more without a corresponding increase in productivity will have to be mitigated.
And when we look at the employment numbers, we see it means entry level workers get less work. Just as it always has.
Yorzhik said:
The businesses involved compete each other down as close to unprofitability as they can and still stay in business (thus the necessity of no superfluous profit).
rexlunae said:
No, that's called a price war. And while it does happen once in a while, that isn't the general case.
It's the general case. If you are this far out of touch with reality then you have no business addressing this subject.
Or is this just a debate tactic you are using?
You think McDonald's and Burger King are locked in a fight to the death?
You think McDonald's and Burger King don't compete? What do you think it means to compete?
And don't forget what companies have to do to be successful. They have to worry less about the competition and more about customers. But customers will choose the competition if costs are not controlled because that imbalance in costs will be shown in the value of the product. Whether costs are controlled to attract enough customers to put the competition out of business, or controlled enough to get more customers in general is irrelevant.
No. Because they both know that it isn't in either of their interests to do that.
Why not?
And because consumer choice isn't as simple as always buying the product that is even a little bit cheaper.
Of course. Which is why mitigating a forced increase in cost will be responded to with any tool available. One of those tools, as math shows, will be higher unemployment for entry level workers.
Then your previous claim is wrong.
Sure. But vanquishing your foes the way that you suggest is highly unprofitable.
The way I suggest business act toward competition is the only way a business can stay in business.
Your arguments are of such low quality that I'm amazed you still think you are qualified to discuss the this topic.
If it were true that all businesses are so worried about customer experience that they always give the absolute lowest price
That you thought I said something like this is indicative of your poor understanding of the subject. You should be more skeptical of what you were taught because someone really took you for a ride.