Because companys, small and mid sized, will just pass there cost onto the customers....the customers that are either jobless, or having alot less hours equaling less pay. Meaning penny pinching...meaning if a company raises its cost to pay for the cost it incurs without laying someone off, means higher prices for the products.

Basically watching the news last night and they asked this same question. One guy they brought onto the show was the owner of a bakery, a very large bakery, with about 30 employee's said...best example...

"If we have a sheet cake that is better than the rest in our area for $20. We pass the cost onto the customer bringing the price up to $23. Whats to say that, that once customer doesnt go down the block to Wal-Mart/Kroger/Public/etc and get the same style cake, not near as good for $14? Just because they are already spending slightly more for a better product, but just dont want to spend even a bit more for the same thing?"