I think giving higher wages to entry level positions is a bad idea. (salary, illegal)
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Tell me this company would still be able to hire a worker at the advertised rate. Why wouldn't the bookkeeper just go flip burgers for 15 bucks an hour?
Better yet just refute the theory of wage push inflation. Is economic theory flawed?
You said that increasing the minimum wage increases all wages across the board. I said they don't. You didn't show any facts or even statistics to prove otherwise. The minimum wage has been increased a number of times since first implementation in 1938...surely you can find a historical table of how they increased wages across the board for all workers.
It doesn't happen.
The accountant will work for the same wage as a burger flipper because the accountant expects a much better future, not to mention better immediate working conditions (notice, didn't you, that the accountant position also included a benefits package, which burger flipping does not?). The person who can be an accountant is not going to settle for being a burger flipper; his career decision is not merely buck-based.
That 11¢ is representative of all the labor costs involved with raising the minimum wage. Labor only constitutes about 25% of all costs at McDonald's.
Do you have reference for this?
You realize that a Mcdonald's franchise operates on a very slim profit margin.
Quote:
Originally Posted by Pennies4Penny
The total for "job and family security" is about $190, approximately $15 per month. Not much.
Let's see how much we pay into corporate subsidies every year. If you make $50,000 you'll pay about $2400 in corporate subsidies. That's about $200 a month. Money that you are giving to people who are multimillion and billionaires.
That welfare you are referring too is tax breaks that are often used by government to produce a desired result. There is a significant difference between letting a business keep the money they have earned and taking it from them too give to someone else. Taxes are no different than the light bill for a business. They are calculated as a cost of doing business and included in the cost of the product, the consumer will always pay the cost of this.
You said that increasing the minimum wage increases all wages across the board. I said they don't. You didn't show any facts or even statistics to prove otherwise. The minimum wage has been increased a number of times since first implementation in 1938...surely you can find a historical table of how they increased wages across the board for all workers.
It doesn't happen.
The accountant will work for the same wage as a burger flipper because the accountant expects a much better future, not to mention better immediate working conditions (notice, didn't you, that the accountant position also included a benefits package, which burger flipping does not?). The person who can be an accountant is not going to settle for being a burger flipper; his career decision is not merely buck-based.
I would do a minimum wage job instead of teaching if it paid enough. The schedule and lower stress is worth it. I worked retail for years, all through high school and college. I also worked extra jobs while teaching, and I loved it.
Using the minimum hourly wage is enough right. The State says: "Look! Here are people which work but have too little wage. Let's make it some higher"!
But how much should be the minimum hourly wage? This is a debatable question because the optimal size is dependent of:
- economic situation in the country;
- place and its level of economic development;
- employee: abilities, experience, motivation.
If minimum wage drives inflation, why has cost of living risen at a pace far beyond minimum wage?
If minimum wage kept pace with inflation, it would be about $11.00 today.
All people want are wages to keep pace with inflation. They are not, and that's why some people want the min wage raised. Raising it to anything less than $11 would have zero inflationary effect.
If any of you can think of another tool we possess to put upward pressure on wages, I'd like to hear it. An alternate strategy would be to put downward pressure on cost of living, primarily housing costs.
In my opinion it should be based off experience. Lets say there's 2 guys one is a wall street banker that just got laid off and one is a high school graduate. They shouldn't be making the same income obviously if they both get hired at best buy wall street guy should have higher wage than high school kid. People who are working at McDonalds and getting paid $15 is crazy?!?! in New York yes any smaller than that then they don't need it.
I am assuming the banker and the high school kid have no experience in retail, and they are both on an equal level in that regard, so why should the banker necessarily make more? Does a banker have some skill which he learned in banking he can use to sell an HDTV? What if the high school kids is fluent in Spanish and Hispanics count for 25% of the customer base? Shouldn't the high school kid be paid more because he can provide a useful skill to increase sales /or improve customer service?
Just so you know an Entry Level job doesn't mean fast food or retail. Entry level is usually a lower position in the corporate hierarchy, think appointment setter rather than a sales director. Its something you start out in and (in theory) work your way to a higher position within that career field.
Without lowering the costs of other inputs, all you are insuring is that the prices of goods and services go up.
And surprise, surprise, suprise, the "living wage" is soon no longer that!
To paraphrase Kipling's poem:
"And so the "progressive" leftists,
Promised abundance for all,
By taking from selected Peter,
To give to collective Paul,
And though we had more and more money,
Less and less that our money would buy,
And the free market economists shook their heads and said
"if you don't work you die...."
Without lowering the costs of other inputs, all you are insuring is that the prices of goods and services go up.
And surprise, surprise, suprise, the "living wage" is soon no longer that!
To paraphrase Kipling's poem:
"And so the "progressive" leftists,
Promised abundance for all,
By taking from selected Peter,
To give to collective Paul,
And though we had more and more money,
Less and less that our money would buy,
And the free market economists shook their heads and said
"if you don't work you die...."
Interestingly, at the time Kipling was talking about Republicans.
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