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Did the demand for fast food decrease because of the increase in minimum wage? No.
So then we can assume that you're of the belief that an increase in minimum wage results in increased efficiency of businesses.
You just argued for an increase in the minimum wage without realizing it.
Most businesses have policies that state what the percentage of expenses based on sales can go to payroll. If you increase the minimum wage, but sales don't increase, then hours must be cut to keep your payroll percentage in line. I used to be the Operations Mgr for a Staples store back in the 1980's. We were provided our total payroll dollars for the week and had to juggle hours of the employees to stay on budget.
Employer taxes are a percentage of salary so you increase min wage you have also increased employer taxes.
The total labor cost increases more than just upping the min wage to workers.
^
This is why I think income redistribution has to come from profits via taxes instead of raising wages...maybe....
Seems that if you raise incomes either directly (via higher wages) or indirectly (via income supplments funded via tax on profits or wealth) this cost will be passed on and profit-taking will continue.
The cost of raising incomes will be redistributed via higher prices either way, but profitabality will remain the same due to the pass-on.
Costco pays better than the typical competition which is not the same thing as a living wage. Entry level start pay is pegged to local Minimum Wage and the competition. In my neck of the woods it's about $10 an hour. They are one of the few publicly held retailing companies that do not govern entirely towards stock price. They have higher quality employees and no problem with retention or turnover. And yet, stock analysts typically rate Walmart the better stock pick for a long term ROI. What matters is the bottom line.
I have yet to observe a COSTCo employee who appears to be miserable. Conversely, the most visible Walmart employees in my area appear disinterested, miserable and worn out. Target is inconsistent, common when relying on part time high school kids. Mileage varies, given the local competition for jobs and competition amongst retailers.
I used to be the Operations Mgr for a warehouse club called "PACE" which was later bought out by Sam's Club. Our employess were happy because the pay was higher, but the work was EASIER. Most of the shopping at a warehouse club is SELF SERVE. We had crews that came in at 4:30am to unload trucks and restock the grocery isles and bake. The warehouse is very easy to recover at the end of the day. The same cannot be said for a Wal-Mart that carries thousands of more items.
Someone yesterday posted on this or another similar thread that "children are a luxury". I agreed with this. Most people probably don't. It goes against the whole " be fruitful and multipy thing".
Back when that was said, many kids did not live to see their first birthday and many more were killed in accidents. Also, they did not expect their neighbors to be subsidizing their family choices.
If it's not meant to be something to support a family on... then how are people who aren't college educated / MBAs supposed to make a living for themselves and their kids?
We all know that skilled manufacturing jobs that previously paid well have been going the way of the dinosaur in this country. And not everyone is college material. Not everyone is going to be a Warren Buffett or a Bill Gates. And real estate / construction in this country imploded, quite clearly. Many of the people in these low service jobs are people who previously would have gone for some skilled labor, and there is less and less of it to go around. China makes everything now.
So what do these people do? Just die?
That's exactly the point. There are so many people these days who seem to hate everyone that can't compete for whatever reasons. As if it were up to them to decide who deserves to live and who doesn't. There are lots of people who will never really "make it". Still, a decent society has to find ways for them to lead decent lives as well. What is the point of having slums and criminals? To make achievers feel good about not being poor?
If society had not allowed incomes to become so insanely unequal in the first place, there would be more money for everyone.
And those social darwinists wonder why the world thinks Americans are cold...
What if she's a stay-at-home wife who lost her husband?
My wife has a $1 Million life insurance policy in case something happens to me. That is more than enough to pay expenses to restrain for a career in the working world.
But the homeowner majority is unwilling to relax housing standards to make said lower standard of living affordable. That is not sustainable.
Quote:
Originally Posted by MTAtech
Safety standards? Fire codes? What standards do you want to relax?
So freemkt, why hasn't the free market flooded the country with inexpensive homes that people can afford? That is what capitalism teaches us -- if there is a demand, someone will rush in to fill it.
Quote:
Originally Posted by HappyTexan
land, labor and materials cost is why. All the demand in the world won't help if the cost to build it is expensive.
freemkt was mentioning relaxing housing STANDARDS and I asked what standards? You replied with "land, labor and materials cost." How does one relax land, labor and materials cost?
So you think that everyone across the board will get automatic raises because they raised min wage ?
Really ?
I'm not against raising min wage. Heck I posted that Congress should take the highest COL city and use that as a gauge and come out with $25/hour min wage for everyone.
Then let your "lift all boats" come into play. Go for it. Everyone deserves a "livable wage".
We're on the road to Utopia..right ?
That would make everyone middle class. People would not need to go to college anymore so they wouldn't be in debt. People would get kicked off of food stamps and out of HUD housing because they are now middle class.
Lifeline would end. No more poverty in America.
Isn't that the win/win you are looking for ?
You fail to recognize that retailers and service provider base their prices on what the economy can bear. If you raise everyone's wages, they will increase prices. This is why college is so expensive. Flood the market with millions of potential students with access to loans and prices skyrocket because they can now afford it.
Last edited by ColonelStraker; 02-15-2013 at 07:21 AM..
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