Comment by Retric
10 hours ago
Your logic is flawed. 8.8% of total wages vs 0% of some lesser number isn’t 8.8% of the difference.
If hypothetically you are paying 99x a year and bumping that to 100x means someone buys an 8.8x product that could be a win.
>If hypothetically you are paying 99x a year and bumping that to 100x means someone buys an 8.8x product that could be a win.
What type of company would this work for? Cars are so ingrained in our society that it's doubtful the marginal Ford (or Tesla) factory worker is going to be buying a $50k car just because they paid better wages.
A luxury car manufacturer could tip the scale of someone buying their product vs someone else’s product via an arbitrarily small wage increase.
The degree to which this is generalizable is of course a different story, but it’s at least theoretically possible for a small wage bump to be a net gain for the company.