Comment Re:Hmm... (Score 2) 1094
Because he is making the very large mistake of think everything that is not labor IN THAT BUSINESS is a 'fixed' cost. And it most certainly is not. Take the example of McDonalds. The mininum wage guy at McDonalds gets a raise, and the original poster assumes that his raise is the total increased cost to McDonalds, so it should not affect the price of McDonalds products all that much. But the minimum wage guy at the plant that prints soda cups also gets a raise, so the price of soda cups goes up to pay for it. And the minimum wage guy at the paper plant gets a raise too, so in addition to the cost to the printer going up because he has to pay his employee more, the cost of the raw cups also went up because the paper plant had to pay his employees more.
Looking at it from the other direction, the feed grower has to pay his hired hands more, so he must sell his seed for more money. The guy at the feed store has to pay his employees more, so the cost of feed to the rancher now went up by the amount the grower had to increase his pay plus the amount that the feed store had to increase his pay. And now the rancher has his considerably more expensive feed, plus he has to pay his hands more. So now the meat packer has to pay for the more expensive cattle, plus he has to pay his employees more. So when McDonalds buys a burger they are paying for raises for the seed grower, the feed store, the rancher, the packer, and everyone else in that supply chain. But you think when you BUY a burger at McDonalds the only increase would be the raise the McDonalds employee got?