prices are not set by some physical law that entitles the capitalist class to a specific cut. we have some monopolies. like bananas. and gas. but, broadly speaking, they're set by market forces. they will charge you what you're willing to pay. and, if you won't pay what they're charging, the prices will come down.
so, you can't work this out using some simplistic linear model. producers will take any opportunity they can to maximize profit. sure. but, it's up to you whether you want to pay for it or not. and, it's up to business owners to set a fair profit margin, too.
some people will get greedy. they won't be able to compete. so sad.
https://www.youtube.com/watch?v=VmrTrVA6jrA
se
minimum wage would be about 25 dollars per hour - workers in USA are being screwed big time
jessica
the system is reacting to some activism. that's a positive step. i mean, it's been a few decades since the union movement collapsed. there's a vacuum there on both sides of the class divide.
but, you need to be careful in preventing the systen from turning it into a wedge issue, like gay marriage or abortion rights. you can imagine this nightmare scenario where the democrats dangle $0.25/yr increases as a foil to scaremongering over the republicans turning it back by ten years.
in 2014, the liberal party up in ontario (canada) just out of the blue took the best position you can on the issue. there wasn't even any activist pressure. the pressure, rather, seems to have come from the party's economic advisers, who decided that the government needed to take steps to stimulate spending amongst low income workers. there was also talk about it eliminating uncertainty for business owners. but it was primarily a stimulus policy that came out of think tanks. this is what they did:
(1) boost the minimum wage to it's highest level, historically, relative to inflation.
(2) tie it to the cpi, to be recalculated on a yearly basis.
so, if there is 2% inflation in ontario over 2016 then the minimum wage for 2017 will increase by 2%. workers aren't losing out.