How does raising minimum wage work? Won’t other services and establishments just raise their prices along the minimum wage increase thus making it pointless?

What you want is fair and equity of pricing and market. However this is not a natural event in business. A business does not operate by selling the same items as everyone else at the same price. Many countries have tried this and you curb competition and stagnant growth and industry by doing so. It's a nice pipe dream but not realistic today.

If need is the mother on invention, Profit is the father.

In order to do that, you would need an oversight, regulations and big brother who would relegate the pricing and allow only certain margins to be attainable, you have no other way to manage it. With no uncapped growth, my R$D wont be supported, Apple wont be able to make that new phone for you next quarter, that means sales will be even worse and with less profit, that leads to job loss. Why would I sell my items on Amazon with no ability to manage my own margins and just be one of dozens all with the same forced pricing structure. I get sales by reducing my price as an incentive to sell, my competition does the same thing, YOU as the buyer profit in this structure.

/r/NoStupidQuestions Thread Parent