So here is how this works.
I exchange my time and effort for money I am paid by the people I did the services for.
I then spend that money on rent and food and bills and other things if I am paid enough to have disposable income.
If you raise the price on everything, I don't have disposable income anymore, meaning no company outside of rent, bills and food is getting my money.
If you lower my wage I have even less money to spend and fewer places get that money.
If I become homeless, no one gets my money.
If you offer me a job that does not give me enough money to pay my bills and rent and eat, I literally can not work it because it is not enough money and is thus a waste of time.
Same thing if you offer a job but tell me I can't have availability for another job.
I also can not work if I have no time to eat, sleep, and perform basic maintenance on my body and home.
The lack of money is going to make more and more people quit and not apply for your jobs because they literally can not afford to work there.
Eventually so few people can afford to work for you, that you close your business and you make no money.
If no one has money to spend, you, as a business, make no money.
All the rich people are about to run out of money because they are not making more and have to keep spending.
Stock market, housing market, job market, all money, all made by exchanging money to make more money.
All money comes from selling and buying products.
If no one is in your business working, you are not making products to sell.
If no one is in your store buying, you are not making money off the products you sell.
However, you still have to pay money for the buildings, and the utilities at the places you make and sell the products. Meaning you are losing money!
The workers are literally where your money comes from!
The government can't keep bailing you out if no one is paying taxes because no one has a job! No taxes, no government money. No government money, no bailouts!
That's just how money works.
It's a cycle, like water.
You put money in, you get money back.
It rains, the extra water dries up and goes into the clouds, it rains again.
Put all the money in a bank, and don't pay anyone and no one spends it, no more money for you!
Put all the rain in a barrel and shove it in a cave 1,000 feet underground, no more rain for you!
You'll eventually drink all the water and run out, no matter how much you hoard.
You'll eventually spend all your money and run out, or it will be worthless because prices will make it worthless, and then you will be poor.
Real world examples include, all the businesses millennials have “killed” over the years with their lack of money!
If you pay people more than they ask for, they will have more to spend, and everyone is happy and makes money.
This is first day of economics class!
The whole thing is just a snake, slowly eating its own tail, and yelling at the waiter for the limited selection!