It stated: “let’s assume that said freelancers are already working as many hours as possible and producing as many words per hour as they can.” Why would we want to assume that? A translator can always sharpen his or her skills, acquire better tools and organize in other ways, and as a result, make more money without raising the rates.

I learned this principle many years ago. I hired a Cuban Mariel refugee and his son to remodel my house in Miami. I watched in total amazement how skillfully and efficiently they worked, without wasting any time. They produced the same if not better quality than their competitors. They were cheaper but more efficient than the competition. For that reason they made more money and had more jobs. As far as I know they never had shortage of remodeling projects since the day they stepped off the boat.

Raising rates will negatively affect the volume of translation request.
That is my answer to the question.