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What will not be seen is what is off the books. My guess is that this will cause a lot more employment to be cash paid under the table type work. IE The underground economy will grow a lot. How it will affect CA tax revenues is still an open question. My guess would be is that lots of employers that employ temporary seasonal workers will move out to NV or AZ. I'd be surprised if Amazon didn't move out soon.
What will not be seen is what is off the books. My guess is that this will cause a lot more employment to be cash paid under the table type work. IE The underground economy will grow a lot. How it will affect CA tax revenues is still an open question. My guess would be is that lots of employers that employ temporary seasonal workers will move out to NV or AZ. I'd be surprised if Amazon didn't move out soon.
Amazon is switching to automation in a big way. Their warehouses are already being managed by robots.
The higher the wage, the sooner that would happen.
The interesting part is the politicians know exactly what they are doing - getting votes. The clueless mass would cheer even they are led into the slaughters.
"Koch was the Libertarian Party's vice-presidential candidate in the 1980 presidential election,[15] sharing the party ticket with presidential candidate Ed Clark."
"The Cato Institute is an American libertarian think tank headquartered in Washington, D.C. It was founded as the Charles Koch Foundation in 1974 by Ed Crane, Murray Rothbard, and Charles Koch."
"Koch sits on the board and donates to the libertarian Cato Institute and Reason Foundation."
"The brothers have made significant financial contributions to libertarian and conservative think tanks and campaigns."
Washington Post: "David Koch: I'm basically a libertarian"
This is all easily Google-able. The Kochs are America's premiere libertarians.
Well also Google-able is all their UN-libertarian positions on various issues in spite of your efforts to label them "premier libertarians" ( whatever that means)
Maybe you can take your obsession with them and start a thread on it.
Getting back to the topic; why not a $30 or $50 min. wage?
LOL, wouldn't that negate the whole point of wage increase?
I am so happy that California is going to hike their wages so high because it will put to rest the bone headed idea that a hamburger joint will jack up the price of its burger from $2 to $10 to cover the increase in wages. It won't. I buy burgers in a country where the minimum wage is easily double what it is in most US states. Burgers don't cost twice as much. They are a little more expensive, but the increase is negligible.
I am so happy that California is going to hike their wages so high because it will put to rest the bone headed idea that a hamburger joint will jack up the price of its burger from $2 to $10 to cover the increase in wages. It won't. I buy burgers in a country where the minimum wage is easily double what it is in most US states. Burgers don't cost twice as much. They are a little more expensive, but the increase is negligible.
You most likely fail to see how many fewer employees they have hired to make those burgers. The money has to come from somewhere. You can't make money out of the thin air.
It's simple as 1+1=2 or cost of material + cost of labor = cost of product. Unless something else gives, you can't increase the cost of labor but expect the cost of product not to increase? That something else can be cheaper raw materials, less labor, more automation, outsourcing...
I think this is a great measure. I particularly like pinning the wage hike to cost of living increases. My prediction is more people with more disposal income will be a great boon to the California economy, but of course some predict that this will be a job killer. Time will tell. I'm glad one state stepped forward and chose to be the experiment. If this goes well, we could finally see a reversal of the 40-year long declines in the standard of living for working Americans.
I wonder if California understands, sometimes people actually don't know how to budget? A person can make $100.00 an hour and if they have no budget or set bills to pay before fun they still are not going to make a decent living. How many people that graduate know how to balance a checkbook, how many know how to deduct and record when spending on a debt card?
Quote:
Originally Posted by lifeexplorer
Amazon is switching to automation in a big way. Their warehouses are already being managed by robots.
The higher the wage, the sooner that would happen.
The interesting part is the politicians know exactly what they are doing - getting votes. The clueless mass would cheer even they are led into the slaughters.
I would like to know the people who support this hike, how many are making less than $10.00 and plan to be low wage earners the rest of their lives.
Bernie asked his supporters in Idaho how many were making less than $10.00 an hr now and he had to make a big deal for the few who were.
California is all about trend setting......first state to push the welfare system, first to legalize pot, first to raise low end jobs to high end wages and the first state to kill Entrepreneurship and the small-businessman.
Last edited by wildflower82; 03-28-2016 at 09:41 AM..
You most likely fail to see how many fewer employees they have hired to make those burgers. The money has to come from somewhere. You can't make money out of the thin air.
It's simple as 1+1=2 or cost of material + cost of labor = cost of product. Unless something else gives, you can't increase the cost of labor but expect the cost of product not to increase? That something else can be cheaper raw materials, less labor, more automation, outsourcing...
The money has to come from somewhere.
Most restaurants operate on a profit margin of less than 5%. Labor is about 1/3 of their total expenses. If their cost of labor increases by 50%, of course they need to find ways to make that up (which is roughly a 15-30% increase in total expenses). People refuse to admit that and just assume all of these companies are sitting on huge stacks of cash. Most stores are owned by individual franchisees, not corporate. They're they ones who have to find ways to pay these higher wages.
This will most likely come about through a combination of things:
- higher prices
- more automation
- layoffs and more demands put on a smaller crew
The bottom line is that it will be a little better for those who are able to keep their jobs and much worse for those who get laid off through higher efficiency or being replaced by a kiosk. Now these displaced workers are out competing with other displaced workers for a smaller pool of available jobs, which will create a class of perpetually unemployed people, making things for those at the bottom worse due to the higher minimum wages.
I wonder if California understands, sometimes people actually don't know how to budget? A person can make $100.00 an hour and if they have no budget or set bills to pay before fun they still are not going to make a decent living. How many people that graduate know how to balance a checkbook, how many know how to deduct and record when spending on a debt card?
I would LOVE to live in a state where people make $100 an hour and don't know how to budget and spend it all. I would start so many successful businesses I would be rich in a hurry.
Anyways though, how people spend the money they earn is really none of my concern. What is a concern to me is businesses who pay their workers unsustainable wages and then expect me to subsidize them by funding social welfare programs. I'm glad California is taking steps to stop this. I want everyone who has a job to be able to take care of him or herself.
A $15 an hour minimum wage is far more reasonable than a $7.50 one.
Most restaurants operate on a profit margin of less than 5%. Labor is about 1/3 of their total expenses. If their cost of labor increases by 50%, of course they need to find ways to make that up (which is roughly a 15-30% increase in total expenses). People refuse to admit that and just assume all of these companies are sitting on huge stacks of cash. Most stores are owned by individual franchisees, not corporate. They're they ones who have to find ways to pay these higher wages.
This will most likely come about through a combination of things:
- higher prices
- more automation
- layoffs and more demands put on a smaller crew
The bottom line is that it will be a little better for those who are able to keep their jobs and much worse for those who get laid off through higher efficiency or being replaced by a kiosk. Now these displaced workers are out competing with other displaced workers for a smaller pool of available jobs, which will create a class of perpetually unemployed people, making things for those at the bottom worse due to the higher minimum wages.
The awesome thing is we're about to find out what happens in the US if you raise wages to first world standards. Do you we flourish like Australia? (I see no reason why we don't.) Or does it kill the economy? Once California proves you can pay US workers a decent wage and still make a profit other states will have a much harder time keeping their wages low.
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