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Old 01-05-2017, 02:38 PM
 
Location: South Bay
7,091 posts, read 18,414,084 times
Reputation: 3323

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Quote:
Originally Posted by RaymondChandlerLives View Post
‘I was stunned by the business’: Fast food CEO says profits soared after minimum wage hike



Sales increases? WTH? I thought these businesses were supposed to be fleeing en masse?

A well-oiled economic machine concentrates its money with the consumers, not the wealthy elite. If right-wingers showed less disdain towards the working class, they'd understand this basic economic principle.

Reason #1,235,831 why conservatism fails as an ideology.
I would imagine this relates to price elasticity. it makes sense that lower cost goods could get a bump from the lower income people getting paid better. on the other end, higher cost goods and services that are provided by lower income workers will probably see the opposite. those prices will almost certainly go up for consumers, but it will be interesting to see what those increases are and how much this affects demand. i can say one thing for certain though, Walmart will not be charging $1080 this year for the same TV they sold for $649 last year. The marginal cost for a TV doesn't go up by 67% because of a minimum wage was raised by $1. To add to that, such a TV isn't even made in CA, it's made most likely in China where i highly doubt manufacturing costs are affected by the minimum wage in CA.
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Old 01-05-2017, 02:56 PM
 
3,780 posts, read 2,393,198 times
Reputation: 2743
Quote:
Originally Posted by BRinSM View Post
I would imagine this relates to price elasticity. it makes sense that lower cost goods could get a bump from the lower income people getting paid better. on the other end, higher cost goods and services that are provided by lower income workers will probably see the opposite. those prices will almost certainly go up for consumers, but it will be interesting to see what those increases are and how much this affects demand. i can say one thing for certain though, Walmart will not be charging $1080 this year for the same TV they sold for $649 last year. The marginal cost for a TV doesn't go up by 67% because of a minimum wage was raised by $1. To add to that, such a TV isn't even made in CA, it's made most likely in China where i highly doubt manufacturing costs are affected by the minimum wage in CA.
Butbutbutbut...big box stores! Profitmongering! More scary words!! Aaaaahh!!!1111
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Old 01-17-2017, 12:15 AM
 
Location: Orange County... Arizona bound
2,244 posts, read 1,170,362 times
Reputation: 2855
Just saw on the news American Apperal is closing all their warehouses in Ca and all stores. They are also blaming Ca business unfriendliness. Another one bites the dust
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Old 01-17-2017, 12:28 AM
 
Location: Los Angeles (Native)
24,145 posts, read 13,668,407 times
Reputation: 11353
Quote:
Originally Posted by Finper View Post
Just saw on the news American Apperal is closing all their warehouses in Ca and all stores. They are also blaming Ca business unfriendliness. Another one bites the dust
Yeah I heard that too. They've been struggling for a long time. It seems they tried to grow too fast and took on too much debt, but the business unfriendliness in CA probably didn't help.
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Old 01-17-2017, 06:33 AM
 
3,780 posts, read 2,393,198 times
Reputation: 2743
Quote:
Originally Posted by jm1982 View Post
Yeah I heard that too. They've been struggling for a long time. It seems they tried to grow too fast and took on too much debt, but the business unfriendliness in CA probably didn't help.
When a company becomes too edgy even for California and there's massive internal fighting, one wonders if maybe they're being just a tiny bit disingenuous with claiming "business unfriendliness" (I wonder how H&M and Uniqlo are feeling about this alleged unfriendliness?) as reasons for failure. Their product was never all that interesting, their prices were too high for what they sold and when the novelty of the merkined mannequins wore off, they realized that this whole "keeping production in the U.S. business" was great in principle but not affordable long-term. Good riddance.
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Old 01-17-2017, 08:26 AM
 
Location: Sylmar, a part of Los Angeles
3,432 posts, read 2,136,474 times
Reputation: 6922
$15 a hour for unskilled labor didn't have a thing to do with it. Sarcasm
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Old 01-17-2017, 09:06 AM
 
Location: la la land
27,138 posts, read 11,338,839 times
Reputation: 19264
Quote:
Originally Posted by V8 Vega View Post
$15 a hour for unskilled labor didn't have a thing to do with it. Sarcasm
No, it didn't have a thing to do with it, the minimum wage in Los Angeles is not $15 an hour, it's $10.50. American Apparel is just another failed business, they had to fire 1800 undocumented workers in 2009 and lost a bunch of customers when it came out in 2010 that in order to get a job at their stores you had to submit full length photos with your application because they didn't want to hire 'ugly' people
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Old 01-17-2017, 09:24 AM
 
3,780 posts, read 2,393,198 times
Reputation: 2743
Quote:
Originally Posted by 2sleepy View Post
No, it didn't have a thing to do with it, the minimum wage in Los Angeles is not $15 an hour, it's $10.50. American Apparel is just another failed business, they had to fire 1800 undocumented workers in 2009 and lost a bunch of customers when it came out in 2010 that in order to get a job at their stores you had to submit full length photos with your application because they didn't want to hire 'ugly' people
Don't bother with a logical argument here. Those who don't want to hear it will not listen.
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Old 01-17-2017, 12:48 PM
 
Location: Los Angeles (Native)
24,145 posts, read 13,668,407 times
Reputation: 11353
Quote:
Originally Posted by 2sleepy View Post
No, it didn't have a thing to do with it, the minimum wage in Los Angeles is not $15 an hour, it's $10.50. American Apparel is just another failed business, they had to fire 1800 undocumented workers in 2009 and lost a bunch of customers when it came out in 2010 that in order to get a job at their stores you had to submit full length photos with your application because they didn't want to hire 'ugly' people
Sure it's not $15 today but it will be $15 in a few years. $15 hr by 2020 in LA It will be going up each year too until then.
Businesses usually look out at least a few years out .
I posted recently about an apparel maker in San Fernando ,CA .
He calculated that he will be LOSING $200,000 by staying so he's headed out of state

Maybe a tech company will replace his space ( who knows )but his former employees won't be able to qualify for those jobs most likely . Maybe the space will sit vacant because it will be harder to find someone to occupy it.

I know the pro $15 crowd always shouts , who cares we don't need those working class jobs!
But many people depend on those working class jobs .
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Old 01-17-2017, 12:56 PM
 
Location: la la land
27,138 posts, read 11,338,839 times
Reputation: 19264
Quote:
Originally Posted by jm1982 View Post
Sure it's not $15 today but it will be $15 in a few years. $15 hr by 2020 in LA It will be going up each year too until then. Businesses usually look out at least a few years out .
I posted recently about an apparel maker in San Fernando ,CA . He calculated that he will be LOSING $200,000 by staying so he's headed out of state Maybe a tech company will replace his space ( who knows )but his former employees won't be able to qualify for those jobs most likely . Maybe the space will sit vacant because it will be harder to find someone to occupy it. I know the pro $15 crowd always shouts , who cares we don't need those working class jobs! But many people depend on those working class jobs .
You simply regurgitate the same talking points in every post, there's really no point on trying to discuss this with you.
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