Conversation Between ashurbanipal and Chinandenga

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  1. Do you think businesses all would pass on cost increases to consumers?

    I think one or a few would take a hit, and thus real wages increase. The problem is big guys like Walmart or some other conglomerate eating up more hits just run the smaller competitors out. Sell below cost for a little. Government would have to be immediately active against this.

    But in a competing environment I think some companies would, in effect, distribute more of their profit to Labour and this downward push on price to other competitors would mean that prices not rise as much as the new minimum wage, thus real growth.

    Thoughts? Especially if afterwards wages were indexed to inflation.
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