I was replying to someone who specifically suggested that companies off-set rising overhead costs by increasing prices.

And BTW....the answer to your question is yes. If wages went down so would prices. I'm not sure you know (or perhaps believe in) economic theory. Mcdonald's doesn't 'decide' the price of their big mac. Prices are determined by supply and demand. Sure, they can 'decide' not to lower the price of the bigmac if their overhead costs decrease. But the theory holds that someone else will (other Burger joints). And no one's going to buy a $10 bigmac if they can get a Wendy's burger for $5.

Economics isn't a moral science. It's a behavioral science. It doesn't tell how us how people SHOULD act. It tells us how people DO act.