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Again, no. Your pay is based on supply and demand. Why do you think McD's pays $20 in some places and $10 in others?.......Most McD's are going to pull in business without any work from the owners or managers or cooks, but unless they can staff the store there won't be any food selling. The owners get the $500K check because they put the capital at risk and can only get paid when there is a profit, but they don't play a critical component. To put this another way, if the owners couldn't work for a week the money would still roll in, but take away the production crew and the money stops.
No, I disagree. The amount of your "pay" is tied to the amount of revenue you generate, you can look down the line through any industry, position, market segment, etc. Most restaurant owners I know are working within the restaurant damn near every day, 7 days a week, open to close almost. The owner(s) put the capital into the business, develop the business plan, the legal plan, the financing plan, the hiring plan, etc. The manager(s) are selected by the owner(s) to do major functions of the business relieving some of those duties from the owner(s) so they can focus on other areas or other restaurant locations that they have. The owners and the managers are the most vital aspects of the restaurant, and thus, they take the biggest slice of the pie of the restaurant. It doesn't matter if the owner doesn't get a "salary" per say (he could depending upon how he structures his business such as using an S-Corp to reduce FICA taxes) the fact is that the biggest slice of the pay-outs from the business go to the people that contributed the most to it's success, which are the owners and managers. Doesn't mean the fry dropper didn't contribute, his contribution was just much less.
Quote:
lycos679,
Just so we are clear though, I'm not saying that the McD worker in this example should or should not be paid more or less than they are, but they do play a critical role in the McD operations. Unfortunately, they are easily replaceable and only bring in $43K/yr (excluding franchise fees).
Well, there you go, so you are agreeing with me for the most part? $43,000 a year might be a little too high in my opinion, for most restaurant locations I would say it might be about $30,000 tops with a full 40 hour work week. So if that guy makes about $9 - $10 an hour that's about $17,280 - $19,200 which is pretty fair and balanced based on the contribution to revenue he's bringing to that store.
And yes, he worked a full work week at 40 hours, but the ECONOMIC VALUE of his work was less than the value of other professions. It's not about how much you work, it's the about the ECONOMIC VALUE of the work you do.
The fast food workers can't comprehend that, which isn't surprising seeing as though they also couldn't comprehend that having 5 kids from 5 different thug/deadbeats would have put them (and more importantly, her children) at severe economic disadvantages in life.
So far the defense has been not suited to higher education or to learning skilled labor. But then you have to try. a uneducated illegal non -english speaking person can but they can't. Yea; right.
No, the uneducated illegal has more rights than a U.S. citizen, higher educated or not. Businesses are always looking for cheaper help and try to get the most out of the person to get the most profit no matter how you look at it. Ever since the economy in the U.S. has gone global, things have gone down hill and still are very fast.
The whole thing is, some areas of the country pay minimum wages, and for the same job, others pay much higher. Here in Montana our high school kids in small towns start at $11 an hour at McDonald's, and adults about $14 an hour, which are more than they are paid in some of the big city areas of the country where the cost of living is much higher.
Get over in the oil patch, and you see help wanted at fast food restaurants, offering $22 an hour and having a hard time finding help.
The interesting thing is, that the state with by far the highest percent of people living in poverty at near 24%, is California the most populous state in the nation.
No, I disagree. The amount of your "pay" is tied to the amount of revenue you generate, .
I want to comment on this one part of your post. This is the problem of today's economy, in a nutshell. The amount of your pay isn't tied to how much revenue you generate. It used to be that a good worker that generated a ton of revenue had bargaining power and could demand to be compensated with a certain reasonable percentage of the amount of revenue they produced. Now, things are different. Because the worker has no bargaining power, even the high producers are being paid a smaller and smaller percentage of the pie.
This puts the 'hamburger flippers' in an even worse position. Even if they work hard and move up, they have no realistic chance of earning an income sufficient to support a family. In other words, little to no hope.
Terrible, really.
When I was young I never considered low end retail and fast food jobs and end in itself. Just a way to make extra cash and learn some basic jobs skills like showing up on time, being where I was supposed to be, when I was supposed to be there and getting a little job experience under my belt and some references to move on to the next step.
Exactly, in fact I remember having one of those 9/hr supervisors that seemed to LIVE for his "job." This guy bought into all the company hype. He scolded me on not sticking around after clock out in order to be a team player and make the store look perfect because one day Id be where he was. I laughed....and laughed....and told him a few expletives and what he could do with his oral region.....I ran into him about 10 years later and he was a store manager and looked like he hated his life.
I want to comment on this one part of your post. This is the problem of today's economy, in a nutshell. The amount of your pay isn't tied to how much revenue you generate. It used to be that a good worker that generated a ton of revenue had bargaining power and could demand to be compensated with a certain reasonable percentage of the amount of revenue they produced. Now, things are different. Because the worker has no bargaining power, even the high producers are being paid a smaller and smaller percentage of the pie.
This puts the 'hamburger flippers' in an even worse position. Even if they work hard and move up, they have no realistic chance of earning an income sufficient to support a family. In other words, little to no hope.
Terrible, really.
You are discussing "bargaining power," but bargaining power in what context? Can you give me an example of an industry where it's not tied to how much revenue you generate? Give me an example......
Retail and restaurants seem to be where most of the job creation is going around here in the Appalachians. And retail pays as well as restaurants do, if that. There just aren't enough jobs for people to have a decent life on.
Sounds like a great incentive to pack the suitcases & move.
Sounds like a great incentive to pack the suitcases & move.
I'm sure anyone with a brain and an ounce of ambition already has. Small towns and rural areas are not viable places to live today. The type of industries that once supported them are in decline to be non-existing.
You are discussing "bargaining power," but bargaining power in what context? Can you give me an example of an industry where it's not tied to how much revenue you generate? Give me an example......
Pretty much all non sales jobs.
Nursing.
Teaching.
Engineering.
HR
IT
Construction
Secretarial
Retail
etc, etc, etc.
All of the above fields are based on supply and demand. A software engineer will make about $24K/yr in Russia, but make about $75K-$100K in the US and about $10K in India. Same job, same qualifications, but different markets.
Under your theory the aggregated part of this graph would never exist.
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