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Old 04-16-2016, 12:47 PM
 
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How is it determined if a minimum wage is too high?
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Old 04-16-2016, 01:16 PM
 
Location: On the water.
10,325 posts, read 6,380,949 times
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Quote:
Originally Posted by jm1982 View Post
Speaking of Walmart... They have been closing stores because of the minimum wage
Walmart Closes LA Store Over $15 Minimum Wage - Breitbart

Walmart Abruptly Shutters Oakland Store, Likely Over Minimum Wage: SFist

Real evidence that the law is a job killer. Of course people will say "Oh well...it's just Walmart"...but those stores employee a lot of people ...and not all of the positions are minimum wage.

All these people are saying , "What city needs those types of jobs"?
It's like ok where are these people going to work , are they going to get laid off from walmart and go straight to work at a law firm, an accountant, a programmer or some other type of highly paid career??
Let me ask you something. When Walmart closes a store - for any reason - does the demand for those items they used to sell disappear? Or do other businesses pick up the sales volume? Do consumers simply stop buying things because WallyWorld closes up?

And if it's true that those sales of consumer goods continue elsewhere, where do the other retailers come up with the extra employees to serve the increases in business? Laid off WallyWorld workers maybe?
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Old 04-16-2016, 01:18 PM
 
Location: On the water.
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Originally Posted by Motion View Post
How is it determined if a minimum wage is too high?
Not a problem since it'll never happen.
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Old 04-16-2016, 01:22 PM
 
234 posts, read 134,767 times
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Quote:
Originally Posted by Tulemutt View Post
Let me ask you something. When Walmart closes a store - for any reason - does the demand for those items they used to sell disappear? Or do other businesses pick up the sales volume? Do consumers simply stop buying things because WallyWorld closes up?

And if it's true that those sales of consumer goods continue elsewhere, where do the other retailers come up with the extra employees to serve the increases in business? Laid off WallyWorld workers maybe?
This response is going to be juicy.
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Old 04-16-2016, 01:33 PM
 
338 posts, read 310,816 times
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Quote:
Originally Posted by Tulemutt View Post
Let me ask you something. When Walmart closes a store - for any reason - does the demand for those items they used to sell disappear? Or do other businesses pick up the sales volume? Do consumers simply stop buying things because WallyWorld closes up?

And if it's true that those sales of consumer goods continue elsewhere, where do the other retailers come up with the extra employees to serve the increases in business? Laid off WallyWorld workers maybe?
It's called a change in business structure, like online options, in order to improve efficiency so that goods can be bought at reasonable prices (otherwise costs of goods will have to go up significantly in order to break even). So in your analogy, when physical stores become too expensive to operate then cheaper options, like amazon, will see increases in sales since their overhead is significantly lower due to automation and a much smaller needed workforce. On the other side, though, as we're seeing in San Francisco is an increase in delivery service employees, which is a good thing. In the overall equation of this example, unfortunately, the jobs lost will still be more than the jobs created. Automation and consolidation of responsibilities will lead to the status quo in product volume, but not workforce.

Oh, and in our future world of chains and fast-food, how has no one on this thread mentioned the inevitable accelerated turn to automation yet...? Or did I miss that?
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Old 04-16-2016, 01:43 PM
 
338 posts, read 310,816 times
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When it comes to business, there are only three words that matter. And this applies to any change, whether it is a forced expense increase like this one, or from changes in the current of how business is done, like a larger online presence. It's always been like this, and it will always be like this. Unfortunately, the minimum wage increase is forcing a dramatic shift in what normally happens due to free market.

"Adapt or die."



Many will adapt and survive. But more will be forced out than we would see otherwise. The needed work force is already shrinking, and this will only further that process. A few will benefit from this, mainly who i label as "A and B" employees, but they are the quality employees who would have only been on MW for a short time anyway due to their better work ethic and thus higher worth to the business. But the C and D employees will be the ones forced onto unemployment, the ones this was supposed to help, until they increase their value. It's all supply and demand.

Last edited by alliance; 04-16-2016 at 02:01 PM..
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Old 04-16-2016, 01:44 PM
 
Location: Westminster/Huntington Beach, CA
1,780 posts, read 1,137,379 times
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Originally Posted by jm1982 View Post
Vacanegro, good point about people seeing this issue from a one sided point of view. It seems there are a lot of people that get upset when they are proven wrong and then throw insults.

I posted about an LA Times article about how the min wage hike is bad for the apparel business.
It mentions a lady that just lost her job with American Apparel. She was making $500 a week, so she wasn't rich..but she is now making ZERO.
American Apparel has been struggling for a variety of reasons long before there was talk of a min wage increase. I'm sure it would be VERY easy to put full blame on that aspect. Good timing LA Times.

Here's a link to another LA Times article back in December that announced plans to close its Echo Park store. The company filed for bankruptcy back in October. Absolutely no mention of the min wage hike in this article.

http://www.latimes.com/business/la-f...221-story.html
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Old 04-16-2016, 01:48 PM
 
234 posts, read 134,767 times
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Quote:
Originally Posted by alliance View Post
When it comes to business, there are only three words that matter. And this applies to any change, whether it is a forced expense increase like this one, or from changes in the current of how business is done, like a larger online presence. It's always been like this, and it will always be like this. Unfortunately, the minimum wage increase is forcing a dramatic shift in what normally happens due to free market.

"Adapt or die."



Many will adapt and survive. But more will be forced out than we would see otherwise. The needed work force is already shrinking, and this will only further that process. A few will benefit from this, mainly who i label as "A and B" employees, but they are the quality employees who would have only been on MW for a short time anyway due to their better work ethic and thus higher worth to the business. But the C and D employees will be the ones forced onto unemployment, the ones this was supposed to help.
And this has been happening for hundreds of years. It is nothing new.

You can't hire an 8 year old to work in a coal mine for 5 cents an hour like one could over a hundred years ago. This new min wage increase is not the end of the world as we know it.
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Old 04-16-2016, 01:50 PM
 
Location: On the water.
10,325 posts, read 6,380,949 times
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Quote:
Originally Posted by NativeOrange View Post
American Apparel has been struggling for a variety of reasons long before there was talk of a min wage increase. I'm sure it would be VERY easy to put full blame on that aspect. Good timing LA Times.

Here's a link to another LA Times article back in December that announced plans to close its Echo Park store. The company filed for bankruptcy back in October. Absolutely no mention of the min wage hike in this article.

American Apparel closing its first store, in Echo Park - LA Times

Right. From the article:
Quote:
In the last decade, local apparel manufacturing has already thinned significantly. Last year, Los Angeles County was home to 2,128 garment makers, down 33% from 2005, according to Bureau of Labor Statistics data. During that period, employment also plunged by a third,
All this before minimum wage hike. Nothing new here. The apparel business has been steadily moving manufacturing overseas for years.
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Old 04-16-2016, 01:51 PM
 
Location: On the water.
10,325 posts, read 6,380,949 times
Reputation: 8605
Quote:
Originally Posted by NOIGUY View Post
This new min wage increase is not the end of the world as we know it.
Or it is - thankfully.
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