AFTER TRADE DEAL, OBAMA SEEKS TO REPAIR RIFT WITH LABOR

[Erich Bloodaxe BSN]

88. Sure, and I've heard of math, too.

Which tells me that if the cost of labour goes up, the cost of goods sold goes up by less, unless your cost of goods sold is 100% labour.

Iirc, correctly labour in, for instance, the restaurant field tends to run a third or less of costs, so even if a restaurant owner were to give his employees a 50% raise, labour costs would still only be 50% or less of costs, and he'd only have to raise his prices about 15% to make up the difference without ever cutting into profits. Now you might say he'd lose customers when he raised his prices 15%, but then again, a lot of folks getting a 50% raise is going to make them more willing to buy, even if prices go up 15%.