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Do you have any experience in management? There is a line where the cost to automate exceeds the cost savings. If minimum wages increase, that line shifts and a company is willing to invest more time, effort and money into automation.
This is very very true. But heres the thing-the cost to automate is rapidly decreasing. These jobs are doomed anyways. We focus on the minimum wage issue when really we should be focusing on the fact that 90% of these jobs will be gone in 10 years. We really need to think this through.
If the company could survive with less employees and still provide a good service to the customers then the business owner was a fool to start with all the overstaffing.
Again, I have to say that you've never run a business.
I have an employee sitting behind me right now. Would my business survive if I had to let him go? Absolutely. But what that employee does is free up some of my time so that I can concentrate on other things. If I had to spend 100% of my time taking and processing orders, I wouldn't have any time to take care of other aspects of the business. There's a lot more to running a business than talking to customers.
Some look at hiring additional people as the growth of a business, but in reality, it's what allows the business to grow.
Most businesses that utilize low cost labor could cut at least one person from their payroll. The larger the business, the more people they could cut. The result would be a higher workload for the remaining employees. If forced into that position by legislative fiat, employers would have no choice but to demand more productivity from the employees that they keep.
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Again, I have to say that you've never run a business.
I have an employee sitting behind me right now. Would my business survive if I had to let him go? Absolutely. But what that employee does is free up some of my time so that I can concentrate on other things. If I had to spend 100% of my time taking and processing orders, I wouldn't have any time to take care of other aspects of the business. There's a lot more to running a business than talking to customers.
Some look at hiring additional people as the growth of a business, but in reality, it's what allows the business to grow.
Most businesses that utilize low cost labor could cut at least one person from their payroll. The larger the business, the more people they could cut. The result would be a higher workload for the remaining employees. If forced into that position by legislative fiat, employers would have no choice but to demand more productivity from the employees that they keep.
Exactly.
Even a small operation with say 10 employees will cut one if they are forced to increase the cost of keeping them.
This usually means the ones that are left have to increase production to cover what the one that left was doing, plus continue doing their own job.
Usually means more stress, less job satisfaction, more turnover, but in a low skill situation there are 20 lined up for that position and nowhere for the person who leaves to go.
If an individual comes to the boss with an idea to save time, cut expenses, do something more efficently, then the boss sees that person as having more value to the business and will increase the wage to keep a good employee. They consistantly do a good job, look for extra duties to keep busy, they are always on time and ready to go to work, those folks are worth more to the company and a smart boss will do everything they can to keep such employees.
The run of the mill "warm bodies" don't deserve more. They exert minimum effort and receive the minimum wage and if expenses have to be cut, they are the first on the chopping block.
Simple economics. Those who produce more get better wages and promotions, those who barely meet quota or find it difficult to show up for work on time ready to do their jobs are expendable.
If the business expands due to demand, then workers are hired to meet the demand. You don't hire more workers if you don't need them, and because of the cost of training a new employee, those that do the best jobs are the best investment for the company and the ones that will be promoted to oversee any new hires, not the guy that spends his whole shift griping that he isn't making $20.00 an hour.
I have asked before and never got an answer;
if "minimum" wages are artificially raised,
what happens to the people who worked their
way up to that wage level? The manager who
worked hard to get to $15 an hour suddenly
makes the same as the kid who just started?
The increase would need to be proportional
all the way up or it is grossly unfair.
So let's just give everyone a bigass raise
and learn to love inflation.
Lots of people have taken Economics 101, where it says if you raise the minimum wage to X, the unemployment level will go up by Y. The righty sheeple don't understand that the real world doesn't fit into these little theories.
The good thing about the minimum wage is that it's a level playing field. All businesses have to pay their workers that minimum. So while you may have to raise your prices, so will everyone else. And if you look at the numbers, the price increases are generally pretty low to raise minimum wage to $10.
Many employers want to pay more, but if they did currently, they'd be at a competitive disadvantage.
Overall: 4.6%
16-19 years of age: 15.0%
Blacks 16-19 years of age: 29.1%
25-54 years of age: 3.7%
Who is most likely to earn minimum wage????
All minimum wage laws do is price the unskilled worker out of the opportunity to work. If a black male teenager wants to work for $6 an hour it aint none of my business. Why should I force him into unemployment because I think I know what he should earn? The ego on minimum wage supporters is ridiculous. How would you like it if I showed up at your workplace and decided how much you should make?
What gives you the right to decide what others make? Compassion is not forcing someone else to do what you think is right. You get no moral credit.
Maybe so many teens wouldn't turn to crime to make a living if they weren't forcefully priced out of legal work. Just a thought.
This is very very true. But heres the thing-the cost to automate is rapidly decreasing. These jobs are doomed anyways. We focus on the minimum wage issue when really we should be focusing on the fact that 90% of these jobs will be gone in 10 years. We really need to think this through.
Oh, I agree completely. Education is the problem and solution to our problems. College students in the United States study less now than ever before in this country's history, and yet the jobs available require more education than ever. We need to stop arguing about minimum wage and start encouraging people to study in their free time instead of watching tv.
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