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Thread: Increase fast food wages?

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  1. #1
    By taking away a portion of a year's profit from McDonalds, you've taken away a portion of investment gains of the following year:

    If I grows by 3%, then taking away 20% of I affects growth by .2I*.03 = .06I. In that same time span, the increase in C is offset by the decrease in I, so in effect you've only decreased total production Y by .06I. Any benefits of increased demand will be seen in the next year after the new profits of McDonalds from an expanded customer base. But there would have been more capital to use to invest had you just kept the money in I in the first place.

    tl;dr money is naturally already siphoned into industries that actually improve our conditions, with the exception of useless shit like yacht production and the like. By putting it in the hands of people who dont actually contribute, you're taking away from better sources of growth.

  2. #2
    What's up, doc? Animeniax's Avatar
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    Quote Originally Posted by Carnage View Post
    By taking away a portion of a year's profit from McDonalds, you've taken away a portion of investment gains of the following year:

    If I grows by 3%, then taking away 20% of I affects growth by .2I*.03 = .06I. In that same time span, the increase in C is offset by the decrease in I, so in effect you've only decreased total production Y by .06I. Any benefits of increased demand will be seen in the next year after the new profits of McDonalds from an expanded customer base. But there would have been more capital to use to invest had you just kept the money in I in the first place.

    tl;dr money is naturally already siphoned into industries that actually improve our conditions, with the exception of useless shit like yacht production and the like. By putting it in the hands of people who dont actually contribute, you're taking away from better sources of growth.
    Yeah but society isn't judged by how rich your businesses get while your population stagnates and wallows in poverty. There has to be a healthy balance and right now there is too much poverty for the people and too much wealth for the rich (companies). It needs equilibrium, even if that means a hit to investment from business and a loss of overall GDP. I don't think paying higher wages to fast food employees is the answer though.


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