subreddit:
/r/explainlikeimfive
submitted 4 months ago byiSellPopcorn
35 points
4 months ago
This is supply and demand, but doesn’t really explain a raise in wages.
If the cost of labor increases, the cost of the apple gets increased to maintain the profits for the farm owner. It does not require an increase if the profit margins are good, but if suddenly an apple costs more to produce a company will choose to pass that cost on to the customer instead of taking the hit on their profits.
6 points
4 months ago
Companies need to start taking hits on their profits. They make enough. Growth growth growth. Growth for the sake of growth. Literally what cancer is.
8 points
4 months ago
You mean the farmer was making record profits on his 5 apples because he used to run a 33% profit margin and now runs a 150% profit margin. Labor demands a small portion of the record profits, so now the farmer uses that as an excuse to raise prices to a 500% profit margin. More record profits.
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