Reply To: question for democrats (and i guess anyone else that wants to chime in)

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#1145016
mosheemes2
Member

The price of a product isn’t the price of its inputs. For example, Starbucks sells coffee, which costs them almost nothing to make, at a couple of dollars, but gives away milk and (in most locations) usage of their real estate, which are relatively expensive, for free. Price is a function of where the meeting point is at which a product will be supplied and consumed.

In your example, if the owner was rational and could sell the salad for 5.72, that would be the price regardless of what wage the employees were getting and the surplus over the 10% he’d have been happy with would go to the owner. If you’re arguing for an increase in the minimum wage, you’re most likely saying that for some reason the market isn’t adequately allowing the worker’s to negotiate to get a share of that surplus. It’s more complicated than that, but that’s a short version of it.