tag:blogger.com,1999:blog-4900303239154048192.post3832355654663682144..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: The Wages-Fund Doctrine for DummiesUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4900303239154048192.post-4283653683422726802015-06-25T09:36:52.417-04:002015-06-25T09:36:52.417-04:00If a retailer lives on 5% profit and raises prices...If a retailer lives on 5% profit and raises prices 5% which in turn loses 5% of sales then the retailer ends up back in pretty much the same place -- because the retailer is working from profit on gross income (100%).<br /><br />If a labor union forces the retailer to raise prices 5% which in turn loses 5% of sales then the labor union is way ahead -- because labor (in this example) represents only 10% of retailer costs. Total sales drop 5% but labor's price is up 50%.<br /><br />OTH, if the retailer can squeeze (unorganized) labor back to 5% of costs while maintaining the same price level then the retailer will double his (formerly 5%) profit.Denis Drewhttps://www.blogger.com/profile/11833367196756465896noreply@blogger.com