UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: mmrmnhrm Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 461221  
Subject: Re: If Date: 10/11/2012 5:10 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Hiring another employee would simply double the burden.

Who said anything about hiring more employees? Meh, whatever...

I'm looking at this as "It doesn't matter to the business what they pay their employees, only what their customers can afford." Now, as you properly point out, if someone is paying 80% in taxes there isn't a whole lot left over, but wages must rise to meet workers' needs, then prices come up since workers-turned-customers have more money, putting more money in company vaults, which in turn leads to expansion, dividends, and (according to supply-siders) raises/bonuses. NYC is a perfect example of this... everything is more expensive there: food, transit, housing, etc. But wages are higher as well. You get paid more for the same job in NYC than you do in, say, Billings, MT. If you drop taxes from a high level to a lower one, you only temporarily goose the consumers, as it doesn't take long before the bean counters tell the board "Hey, people are getting to keep twice as money they used to, so we can cut back on salaries without actually hurting their financial situation!" Wages begin to stagnate or even drop, until finally an unhappy equilibrium between "this job sucks, I quit" and "I'm disgruntled, but the alternatives aren't any better" is found.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Ringing the NASDAQ Bell
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement