(11-07-2020, 01:36 AM)Bchbunnie4 Wrote:

(11-07-2020, 01:19 AM)Jag88 Wrote: It looks like the people spoke, and they gave themselves a raise. Just saying haha
Maybe some of the people will be able to afford rent?

You know what happens when everyone starts making more money? Prices for stuff like rent goes up too.

It's not necessarily a wash though.
Labor cost is only a small component of cost of goods, usually about 30%
If labor costs are forced to increase 10%, the first order effect is cost of goods only increases 3%.
Rent is different.  Rent is dictated by supply and demand.  In this case, some of the people getting increased wages may demand a place of their own, no roommate.  The housing market might be able to incrementally create new units at the same cost as existing units, which is a win for everybody (although it could create traffic problems).  But if the ability to create new units is constrained, rent prices can go up vastly in excess of wages.

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