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"But their higher wages come at the expense of profits."
Not necessarily. The cost of the higher wages may be passed on to consumers.
Commented Feb 3, 2013 on Living wage trade-offs at Stumbling and Mumbling
Living wage trade-offs
How should we think about trade-offs in economic policy? Some tweets by Jon Stone have raised this question. To see the issue, take the Resolution Foundation's estimate (pdf) of the effect of fully implementing a living wage. It reckons such a policy would raise the gross earnings of around fiv...
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