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nothing helps unemployment rates like taking more money out of the employers hands.
higher-minimum-wage-coming-soon.html: Personal Finance News from Yahoo! Finance (http://finance.yahoo.com/career-work/article/107297/higher-minimum-wage-coming-soon.html?mod=career-salary_negotiation - broken link)
If paying a couple of cents per hour to those few you may have working at minimum wage will break your company your company was already doomed, not much a business person if you do not know that. Next time hire better quality personnel, at a living wage, and this issue will be resolved.
Casper
Location: I currently exist only in a state of mind. one too complex for geographic location.
4,196 posts, read 5,842,251 times
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Quote:
Originally Posted by Casper in Dallas
If paying a couple of cents per hour to those few you may have working at minimum wage will break your company your company was already doomed, not much a business person if you do not know that. Next time hire better quality personnel, at a living wage, and this issue will be resolved.
Casper
a living wage is whatever the person is making. if they are working, then they are alive, and thus paid a living wage. they are raising it $1, not a couple cents. I am not blaming them for doing so, but unemployment will go up IMO.
If paying a couple of cents per hour to those few you may have working at minimum wage will break your company your company was already doomed, not much a business person if you do not know that. Next time hire better quality personnel, at a living wage, and this issue will be resolved.
Casper
If paying a couple of cents per hour to those few you may have working at minimum wage will break your company your company was already doomed, not much a business person if you do not know that. Next time hire better quality personnel, at a living wage, and this issue will be resolved.
Casper
This arguement has been being made since the begining of labor laws. Problem is, its a logical fallacy.
Employers don't care if the minimum wage raises. They could care less. All they have to do is simply mark up their products or services by X dollars to make the profit margin the same.
In turn, the cost of products and services go up, so the extra money made by low wage employees has the same buying power as before.
Same thing happens with our oh-so-high corporate tax.
Trying to regulate the free market through laws like this does nothing and infact only causes inflation for everybody.
This is not a complicated thing to understand. If the employees feel that they aren't being paid a living wage, then they need to take the steps necessary to earn more money. If the minimum wage employers couldn't find anybody to hire because they paid too little, then they would be forced to raise their pay to obtain workers.
Minimum wage is simply another assault on the free market by those people trying to make a claim that the free market system is unfair to justify their own short comings.
This arguement has been being made since the begining of labor laws. Problem is, its a logical fallacy.
Employers don't care if the minimum wage raises. They could care less. All they have to do is simply mark up their products or services by X dollars to make the profit margin the same.
In turn, the cost of products and services go up, so the extra money made by low wage employees has the same buying power as before.
Exactly an how some people can't comprehend this is beyond me, beyond that when a company in the U.S. has to pay these higher expenses the company becomes unprofitable because they can't compete with offshore companies paying a lower wage. The company either moves business offshore and the workers lose a job or it goes out of business and everyone loses.
This arguement has been being made since the begining of labor laws. Problem is, its a logical fallacy. Employers don't care if the minimum wage raises. They could care less. All they have to do is simply mark up their products or services by X dollars to make the profit margin the same. In turn, the cost of products and services go up, so the extra money made by low wage employees has the same buying power as before.
Try running you model with some realistic numbers. Say, 10% of people are affected by the minimum wage increase, but 100% of the people are affected by any subsequent price increase. Now what happens?
Quote:
Originally Posted by jcarlilesiu
Same thing happens with our oh-so-high corporate tax.
LOL. We have one of the highest nominal corporate tax rates among developed economies, and thanks to myriad tax breaks and credits, one of the lowest effective corporate tax rates.
Quote:
Originally Posted by jcarlilesiu
Trying to regulate the free market through laws like this does nothing and infact only causes inflation for everybody.
Free markets are amoral. They just seek equilibrium. They don't care where that is or what it looks like. Failure to regulate markets is like like shooting yourself in the foot. And both knees, an elbow, and a shoulder...
Quote:
Originally Posted by jcarlilesiu
Minimum wage is simply another assault on the free market by those people trying to make a claim that the free market system is unfair to justify their own short comings.
Get a grip. Markets are a tool, just like a chainsaw. If you're not careful, you can do some real damage with either one of them.
This arguement has been being made since the begining of labor laws. Problem is, its a logical fallacy.
Employers don't care if the minimum wage raises. They could care less. All they have to do is simply mark up their products or services by X dollars to make the profit margin the same.
If the economy operated "logically," you'd be correct, but economics is a social science. What we've observed - so much so that it's called a law - is that when prices rise, sales fall, so your little "logical" experiment isn't necessarily true. Indeed, if an operator has his ducks in a row, he's already operating at peak efficiency, so raising prices will not affect profit one bit. In fact, depending on his particular case, raising prices could decrease profit.
Quote:
In turn, the cost of products and services go up, so the extra money made by low wage employees has the same buying power as before.
This has never been shown true regarding the minimum wage.
Quote:
Same thing happens with our oh-so-high corporate tax.
Same thing. Price is a reflection of supply and demand, not the corporate tax rate.
At a price of y, x number of widgets can be sold. Very basic. Raise y and x goes down. Profit goes nowhere. Any tax increase or wage increase comes out of profit. Simple.
A perfect example would be my company. About 90% of us got a raise last January, but because of pressure from competitors, price to our customers went down.
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