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Last I checked Dominoes sold food. It's basically fast food AND its stores are run by franchisees, aka "small businesses" --- exactly the kind of businesses you say are going to die out because of this.
Walmart sell food, does that make them a restaurant. Trying to call dominos a restaurant so that you can make an argument is pretty pathetic. They sell fast food, and have a lean business model where employee cost is a small factor.
Hence they will not lose from a minimum wage increase, in fact they may benefit because they become a substitute.
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It took me about 90 seconds to discover what a typical restaurant pays to labor.
My number was 55% of cost, and 33% of revenue. So my numbers were spot on. Hence for restaurants employees is a big budget item.
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Who knows? Maybe no one will go out to eat any more in California. As a society Americans eat too much salt and fat laden food outside the house anyway. Perhaps an increase in eating out costs will reduce our aggregate health care costs over time.
Maybe one day you and rruff will learn what substitutes are. How many times do I have to explain to you guys that people won't stop eating out, but they will find cheaper places to eat.
Cheaper places to eat normally has fewer employees per customer, especially if the minimum wage becomes high.
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Why is it that people so against increasing the minimum wage are so in love with those crappy jobs? I worked PLENTY of those kinds of jobs in my life. You know what they lead to? Slightly less crappy jobs
Why do you have to resort to strawman. Not in love with crappy jobs, and I want to make them better. Pay is not the only issue about those kind of jobs.
But why not increasing the minimum wage? Because unemployment sucks even more. Minimum wage can cause unemployment if it get high enough, just look at Puerto Rico.
Also California has just recovered from the recession, way behind most states. So stop thinking you are invincible.
Sure they suck, but what makes them ****ty is not the low salary (most places in the world has much lower salaries), what makes them ****ty is the terrible work hours and the mundane tasks. That is something we can fix, if progressives were able to focus on important issues.
3rd world countries of the world don't have the same cost of living as the US, so that point is meaningless.
Working conditions can be an issue in their own right. Making $15K to $25K a year is one major issue that's causing such a struggle with that demographic.
You will just decrease debt levels, you won't decreate debt payments. Because when inflation becomes high, then loan providers will demand more in interest. This is especially damaging during crisis, you can't borrow a lot because then you bancrupt yourself, and you can't print because then you get hyperinflation.
The cost of borrowing goes up with inflation. Currently in the US our cost of servicing personal debt is less than it was in the 1980's. But we have 40% of GDP (approx.) more personal debt.
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Originally Posted by Camlon
You don't need to believe me, just look at south america who has suffered from high inflation over long time. Their debt payments are high, they have high unemployment rates, and the countries with high inflation rates are also the countries who perform the worst.
Inflation behaves differently depending on how you drive it. Stagflation is too much debt and driving inflation with more debt. To my knowledge no one has ever tried to drive inflation with wages. (I mean targeting 10% annual inflation rate or higher.) It should get full employment not high unemployment. But you have to put the money into the hands of the workers.
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Originally Posted by Camlon
And there you just destroyed all trade to the US. Just imagine the same requirement to the US from a very rich country. They tell us that any company who export to them need to pay all their workers at least $150K and they can't buy from companies who pay less than $150K. 99.9% of the companies in the US will not follow that requirement, because that rich nation is not their only market.
But the fly in your ointment is this. Everyone needs USD to buy oil with, and they are currently making stuff at a loss to get it for international trade.
I have to laugh I want a $30hr minimum wage. That is $60k a year. $150k is more than we need but more is better than less.
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Originally Posted by Camlon
The result of this proposal is that millions of people abroad become unemoloyed, which will push down global wages. You will also cause a massive recession in the US, because people will have a lot less purchasing power.
OK here is a physical analogy that explains what I'm looking at. Airplanes have two kinds of drag. One from lift the other from air flowing over the skin. The second kind behaves normally. It goes up with the square of the speed. The first kind behaves backwards. It goes up as the speed goes down. Airplanes with highly swept back wings or delta wing are famous for trouble with being on the back side of the power curve. That is if you pull up you don't go up you go down instead.
The world's economy is on the back side of the power curve. More debt slows it down it doesn't speed it up. When you are on the back side of the curve pushing the nose down gets you to clime not descend. Pushing wages gets growth. If you put US wages into a very small % of a third or fourth world economy then you will get explosive growth in that economy. The limit on growth in those economies is lack of domestic demand. It will hurt their export competitiveness, but if you look at the Japanize model growth with home grown capital is best.
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Originally Posted by Camlon
That is why I said you didn't think it through, because your proposal will lead to less imports and lower wages world wide.
It will lead to lower imports. But they need USD for international trade so they will pay a small percent of their works the wages to get it.
The growth will happen above the US minimum wage not below it.
CA is working on a plan to raise min wage over 5 years to $15/hr. If a employee in a higher position gets $15/hr based on free market wages and an employee below then gets $15/hr based on min wage, assuming that the business can't function without both employees, what would likely happen?
when you bypass supply and demand and natural inflation, you get dislocations. someone will pay dearly for this welfare.
Complete nonsense, based on a flawed understanding of economics.
Assume businesses raise prices to compensate. In real terms, low end incomes go up, and higher end incomes go down. Aggregate incomes don't change. Aggregate demand will actually rise a little. No aggregate change in profits. No change in employment.
I would assume businesses will cut jobs to save on labour costs, and insist those who just got a raise to work harder for it. That's the model most companies operate under now... Do more with less and if you don't like it, leave. I work for a very large financial institution that requires skilled workers, and this has been the way they have been running things for the last four years. We aren't the only ones doing things this way by a long shot, either.
Remember, it's easy to deal with worker turnover when the workers don't require any sort of marketable skills in the first place.
I would assume businesses will cut jobs to save on labour costs, and insist those who just got a raise to work harder for it. That's the model most companies operate under now... Do more with less and if you don't like it, leave. I work for a very large financial institution that requires skilled workers, and this has been the way they have been running things for the last four years. We aren't the only ones doing things this way by a long shot, either.
Remember, it's even easier to deal with worker turnover when the workers don't require any sort of marketable skills in the first place.
You could avoid that with a government job. My COLAs come from thin air :]
I would assume businesses will cut jobs to save on labour costs, and insist those who just got a raise to work harder for it. That's the model most companies operate under now... Do more with less and if you don't like it, leave.
3rd world countries of the world don't have the same cost of living as the US, so that point is meaningless.
Working conditions can be an issue in their own right. Making $15K to $25K a year is one major issue that's causing such a struggle with that demographic.
I am talking about wages adjusted for cost of living in western nations. Compared to California $10 per hour you will recieve lower wages in Japan, Korea, Southern europe, UK, Eastern Europe and in all third world nations. Even in western countries it is only Scandinavia and Australia that is slightly higher.
As we know California has very high inequality, while those countries don't. In addition several of them struggle with unemployment. Considering that why do you think California can support a minimum wage that is much higher than rest of the world.
And even after implemented those jobs will still be ****ty and not pay enough to live because rent has gone up. There are other ways of making those jobs less ****ty, but progressives couldn't care less because that is not part of their ideology.
And even after implemented those jobs will still be ****ty and not pay enough to live because rent has gone up. There are other ways of making those jobs less ****ty, but progressives couldn't care less because that is not part of their ideology.
You keep copying and pasting this without any elaboration. What would you do to make jobs better and pay more then? In the current situation, MW is the same, while rent is going up anyways. CoL has always been at wits with MW. MW should go up, as it's useless if we were still stuck in the past where it only paid $3/hr or something like that.
CA is working on a plan to raise min wage over 5 years to $15/hr. If a employee in a higher position 15/hr based on free market wages and an employee below then gets $15/hr based on min wage, assuming that the business can't function without both employees, what would likely happen?
I was in charged for the radio communications for the boss. And I recieved approximately $30 more in my every paycheck. It was just 1 dollar more for everybody per day.
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