Liberals: If increasing the cost of cigarettes decreases cigarette use...?
Then wouldn't increasing the cost of labour decrease employment?
- ?Lv 69 years agoFavorite Answer
Yes that's true. It would. And it does. Labor costs reach a level at which new hires are less economical than paying a little overtime once in a while.
There are exceptions. For example, if the demand for welders exceeds the supply, then companies will pay more than the prevailing rate of,say, $20 per hour, until the supply of labor increases or the demand for them drops.
- Anonymous9 years ago
Yes, but it's not our fault there are too many people and too little jobs. That's not an excuse to pay the people on the bottom "mediocre-ly".