Originally Posted by kane

There is actually a theory that prices will only go up small amounts and profits will actually shrink because many products have a critical price point and people won't be willing to pay beyond that much for it.

Take for example McDonald's. If they tripled wages they would have to raise the cost of their food. However, there is only so much a person would be willing to pay for a Big Mac so there is actually a limit to how much they could raise the prices.

As for tourists. . . honestly, when you have thought about going on vacation somewhere has the price of parking and hamburgers ever really affected your decision to go there?

This wage hike could cause prices to rise, but I think a lot of people assume it will be more than it likely will be.