Quote:
Originally Posted by jyl
Wait a minute. So, restaurant A who pays its waitresses minimum wage is forced out of business because restaurant B across the street is staffed with illegal alien waitresses making $4/hour?. Like, the customers don't notice that the waitresses in restaurant B can't speak English and don't know the wine list? Or are you saying that the WalMart Superstore that is forced to pay minimum wage is struggling to compete with that little shop down the street staffed with illegal alien clerks, because the little shop can underprice poor Wal-Mart?.
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Exactly! If both restaurants in your example sell tacos, the restaurant that sells a taco for $1.50 just might sell more taco's than the place across the street that sells the same for $4.50.
Just to make it simple for you....if both restaurants were the same, do you think there would be any advantage to the restaurant that gets free rent?
It's pretty well known that Wal Mart has put much competition out of business. How are they doing it? By selling for less. How do they sell for less? By buying merchandise from overseas where the labor is cheaper (the average Chinese factory worker makes 1/10th that of a US worker).