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Figuring out a minimum wage is easy. Minimum wage earners generally have well defined skill sets.
But when a worker is generating millions of dollars for his boss through his work alone, defining how much of those millions should go to him as a reward for his superior work is a tad harder to decide. After all, if he walks out the door, millions go with him. Your biz will take a big bone-breaking fall, and somebody else will have their turn at making the money he once made for you.
Cap his pay, if you want, but be prepared to offer something other than money as well. The perks for top earners are often far greater than their paychecks, but they too, will come out of your pocket, and if you try to cut them, he'll walk.
If he goes, you lose, period. Those guys can't be found hanging out in the parking lot looking for some day work. Odds are, you'll never see another guy like him anytime soon enough to avoid massive damage. And once the word gets out that you capped him, nobody's gonna come knocking who's anywhere as good as the guy who left.
Think about it. Labor is such a huge component of companies costs that any fall in cost will result in lower prices back to the consumer. If labor was capped at $50 an hour, companies are just going to pass their millions of dollars that they used to pay higher management right on back to customers. ....
Come on guys, this is basic ECON 101.
You must of failed at that course because it's voodoo economics.
Nixon tried this very thing in the early 1970s with his wage and price control program. It almost destroyed the economy and was found to have no effect. What it did do was to cause shortages of basic commodities. They abandoned the program 2 years later.
Lol. Everyone pays the higher prices but only some receive higher wages.
If I'm making $12 now becsue my labor is worth more than minimum wage you expect me to accept minimum wage if it goes to $12? If I had to accept $12 why would I want the responsibility of higher earning job when I can just go flip burgers for same thing?
If I'm making $12 now becsue my labor is worth more than minimum wage you expect me to accept minimum wage if it goes to $12? If I had to accept $12 why would I want the responsibility of higher earning job when I can just go flip burgers for same thing?
No, there should be a cascading up of wages with a minimum wage increase. So if it went from 8 to 12, and you were currently making 12, then your wage would likely bump up to 14 or 15. Not as much as the minimum wage increase, but some. This effect would soften the higher up the wage ladder you are till about maybe 25 per hour where you wouldn't see much change.
The thread is nothing more than an attempt to justify a higher minimum wage. A clever ruse of sorts.
Well, it's just a response to everyone sticking to the model when they discuss minimum wage. I guarantee you next minimum wage thread there will be someone who says an increase in the minimum wage will result in tons of unemployment and massive price increases. And all I have to say is look at a max wage, and would the opposite happen
Quote:
Originally Posted by banjomike
Figuring out a minimum wage is easy. Minimum wage earners generally have well defined skill sets.
But when a worker is generating millions of dollars for his boss through his work alone, defining how much of those millions should go to him as a reward for his superior work is a tad harder to decide. After all, if he walks out the door, millions go with him. Your biz will take a big bone-breaking fall, and somebody else will have their turn at making the money he once made for you.
Cap his pay, if you want, but be prepared to offer something other than money as well. The perks for top earners are often far greater than their paychecks, but they too, will come out of your pocket, and if you try to cut them, he'll walk.
If he goes, you lose, period. Those guys can't be found hanging out in the parking lot looking for some day work. Odds are, you'll never see another guy like him anytime soon enough to avoid massive damage. And once the word gets out that you capped him, nobody's gonna come knocking who's anywhere as good as the guy who left.
That's life in the big leagues.
Yeah, I understand some of why they make what they do, but why did top managements wages shoot through the roof in the US vs other countries and in recent times vs 40 years ago?
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