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Originally Posted by dreamingat30fps
How though? You’re the second person brining up some other country. I have no personal experience with how it works in other countries but the math is the math.
If you raise wages you either have to increase prices, cut somewhere else or lower profits and I’m willing to bet most big corporations will not do the latter.
Maybe Australia uses special math, but if that’s the case why stop at $20/hour? If raising labor costs has no negative effects why not keep going? I’m sure there are plenty of places you can’t live in for $20/hour. Why not $30 or $50 or $480/hour so everyone can become a millionaire in a year.
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I don't think folks are saying it has no effect but look, the Australian economy has been amongst the worlds best for 25 years now and income inequality, whilst worsening, is nowhere near as stark as it is in the USA. Issues like crime and homelessness are not even close to the US figures. Not all this is related to minimum wage but I think at times you guys down there get a bit closed minded on the way other societies function.
All I know is, I go home pretty often and i see ads for $30 an hr for grocery clerks, yes the cost of living is higher than the USA but it seems to work with at least the same success as the US low min wage theory in a broad sense.