Again, Bernie is a brainlet who lacks the ability to even do the most cursory research on his own political points.
Australian minimum wage has been index locked for NEARLY A CENTURY. basically, every year, their minimum wage goes a handful of pennies up, and because this has been happening for nearly a century, its now the highest in the world.
Do I even have to explain the sheer lunacy that is trying to catch up on a century of consistent, predictable economic policy in a single year? No. I shouldn't. It would take several years for the economy to normalize to the minimum wage (because sudden increases in income almost always translate in the short term to a higher pay-off of outstanding debt, swapping out deprecated necessary high-value goods such as cellphones, computers, cars and furniture, and short-term luxeries). For your average restaurant owner, supermarket branch manager or farmer to notice the difference in consumption rates might very well take years, because not only would people not use their increased income to better their general life style for the next few years (keeping their median spending power the same and preventing prices from being raised); people are always reluctant to alter their lifestyle both upwards and downwards. This means, that for the day-to-day consumption goods industry, they'll probably see wage increases across the board, but may very well have to wait years before they can restore their profit margin (which, for the record, is 2-3% for a supermarket) without further depressing buying power.
The outcome should be obvious; many will go out of business as, in case the crisis didn't tip you the fuck off, most businesses are barely making enough to stay afloat, and those that won't will likely have to lay off personnel to maintain their profit margin.
There are no shortcuts to economic policy, socialists, no matter how much you'd like your revolution to happen in a day.
Again, Bernie is a brainlet who lacks the ability to even do the most cursory research on his own political points.
Australian minimum wage has been index locked for NEARLY A CENTURY. basically, every year, their minimum wage goes a handful of pennies up, and because this has been happening for nearly a century, its now the highest in the world.
Do I even have to explain the sheer lunacy that is trying to catch up on a century of consistent, predictable economic policy in a single year? No. I shouldn't. It would take several years for the economy to normalize to the minimum wage (because sudden increases in income almost always translate in the short term to a higher pay-off of outstanding debt, swapping out deprecated necessary high-value goods such as cellphones, computers, cars and furniture, and short-term luxeries). For your average restaurant owner, supermarket branch manager or farmer to notice the difference in consumption rates might very well take years, because not only would people not use their increased income to better their general life style for the next few years (keeping their median spending power the same and preventing prices from being raised); people are always reluctant to alter their lifestyle both upwards and downwards. This means, that for the day-to-day consumption goods industry, they'll probably see wage increases across the board, but may very well have to wait years before they can restore their profit margin (which, for the record, is 2-3% for a supermarket) without further depressing buying power.
The outcome should be obvious; many will go out of business as, in case the crisis didn't tip you the fuck off, most businesses are barely making enough to stay afloat, and those that won't will likely have to lay off personnel to maintain their profit margin.
There are no shortcuts to economic policy, socialists, no matter how much you'd like your revolution to happen in a day.