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« on: April 11, 2014, 04:09:47 am »
The culmination of a three-day-long facebook argument over why paying poor workers won't make everything too expensive for anyone to buy, shortly after I restated my entire point in the form of a word question with silly unit names since he kept accusing me of "just guessing" what the numbers in my hypothetical examples were...
Lolbertarian: How did the number of items produced increase by 50% if we just raised wages without adding workers?
Witness: That's the thing you keep missing, dude. Figure it out. Why would a company have to make more things? Could it be demand rises because there's more money in the pockets of consumers? No way.
Me: Uh... number of units produced didn't change because it didn't need to. I mean, in the future, the fact that more of Fakey McNotARealProduct will be purchased means a larger market and more total profits to the company (even at the same 10 gloobort profit margin) means they will *eventually* expand and produce more (and that will necessitate hiring more martian workers), but the increase in buying power happens FIRST and DRIVES the business expansion, not as a result.
Lolbertarian: Raising workers wages isn't going to increase output without adding more workers. If you added more workers, then the labor cost increase is more than 50% because some of them come in with the new full salary., not the old salary.
Me: Also, work on your word-problem skills. Nowhere in that example did it say number of items increased 50%. It said glooborts paid to the martian workers increased 50%.
Witness: yes, because we live in the 18th century
Lolbertarian: Your words, cut and pasted, "That is a 25% increase in the final price of Fakey McNotARealProduct, but the workers are making 50% more glooborts." It specifically says they are making 50% more items. My word problem skills seem fine.
Me: Output increases as a result of increase buying that results from increased buying power. The increase in buying power happens first, as the math clearly shows.
Me: Glooborts are the MONEY. Fakey McNotARealProduct is the item.
Me: Pay attention, man.
Witness: oh my god what did i just witness i can't stop laughing
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