Profiting off of Minimum Wage Increase

>>1611540
my country is raising minimum wage every year by 10%

You in az boy? I don't think our basic necessities will go up, housing probably will, gas, and people may lose jobs. That's about it I believe

>>1611540
You could try to short low wage companies like mcjew and Walmart just before their next minimum-wage hiked earnings quarter. It's almost sure to effect their bottom line. Still risky though

>>1611540
You can't really profit off of minimum wage hikes because most basic consumer goods (the ones that use minimum wage labor) will rise in price accordingly to offset the new price floor for labor. That is, if the minimum wage is above the equilibrium price for labor.

That's the textbook explanation for you

>>1612308
>You can't really profit off of minimum wage hikes because most basic consumer goods (the ones that use minimum wage labor) will rise in price accordingly to offset the new price floor for labor.
So just stock up on consumer goods and sell them once the price hike occurs.

If they are going to raise the minimum wage, then buying cheap shit and selling it later to good little goyim who have more spending cash is the way to go.

>>1612315
The thing is that you have to stock up (you need space), assume that the quantity demanded will increase instead of decrease, and price accordingly. Sure, you can do it. But you also have to get attention, i.e. advertising or else people won't know about you. After all is said and done it doesn't sound like a very viable business option to me unless you're buying wholesale and forming your own general store, your money would be best spent elsewhere.

>>1612349
spent or invested* elsewhere

That's not to say there aren't exceptions. For example, a couple years ago after some shootings in America everyone was afraid of gun and ammo bans. People hoarded .22lr, a very cheap cartridge, and when supply of .22lr dried up the hoarders began to resell it on the internet at a fairly high price. Obviously that didn't work in the long run as eventually the supply started back up again to capture that profit opportunity.

>>1612351
*I keep forgetting things, fuck this hangover

They resold the .22lr through the internet on websites for guns and ammo, like gunbroker. You have to see the opportunities for profit like that and act fast, because if you're not fast you're last. That's a key part of entrepreneurialship.

>>1612357
Or you know they can go next state over to get cheaper shit

>>1612400
They can. Maybe it's not worth their time and gas money etc. to do that

>>1611540
index funds are a good counter to inflation. borrowing the money will always cost more than you will get from it unless you apply additional risk.