What is an item worth?

[Zigkid3]

This makes the assumption that the company is attempting to make revenue or profits a constant value. Every company is always trying to increase profits, so they already try to cut costs and increase market share. To suggest that a company would look at its ledger and say "yup, these profits are good, lets stop here" is silly. And with the two biggest, or at least most frequently complained about companies, McDonalds and Walmart, both could increase their employee wages and still have very healthy profits. There is no incentive for these companies not to do this, unless there is some outside force or requirement that they pay a living wage to their employees, they have no reason to, and would not.

If a company is going to have a permanent increase in cost in some way (increasing workers wages), a good company that wants to maximize profit will try to offset it in some way if possible.
I don't see how you interpreted my post as suggesting a company would say "yup, these profits are good, lets stop here" when i specifically stated that they would react to any large changes such as a change in the minimum wage.
Yes they could increase their wages and still have profits, however it won't be as much as it should have been, which is a loss in potential income. If their income statement shows lower performance compared to previous years (even if it's still a positive) it will cause investors to worry which will cause their stock to go down, which means their equity goes down which means their assets go down (since assets = liabilities + equity). So in short, a company will do what it can to maintain as high profits as possible, even if they'd still be well off if they just accepted the change like it was nothing, a company wants to be efficient and thus they will react to the change.

This direct relationship is really only true if the only place they can buy from is Walmart (which granted, could be the case). When workers have more to spend, it increases demand for goods, and luxury purchases become a possibility. As is often said, a rising tide lifts all ships.

I was talking about if the U.S. decides to increase the minimum wage since the Federal government sets a a minimum wage guideline while the States set their own minimum wages at or above the Federal level.
Walmart will just choose the legally lowest they can depending on the state of that store's location.

The only time an economic policy is truly bad, is when it stops or slows the circular flow of money. People who have limited means always have things they need or want to buy. A slight jab at wealthy people, they don't generally keep the money moving. They still need housing, and transportation. But if a person have 10x the average wage, do they consume 10x the goods? Do they buy or rent 10 houses? Do they buy 10 cars, eat out 10 times as often, buy 10 times as much clothing?
This is all possible, but what happens when that ratio hits the average hits 380 times their average employee's pay? Do they buy 380 times more goods, and produce 380 times more demand?

A strong economy requires people to be spending money, and a people need to have money to spend.

I agree on this point, though it has nothing to do what we were talking about in the first place.
(now we're really starting to get off topic though)