A California mall staddles 2 cites - and has 2 minimum wages (drugs, brainwash)

[BentBow]

Originally Posted by theunbrainwashed

Cost of a quarter pounder in the UK, about £4. Cost of a quarter pounder in the US, $3.79 give or take. Oh yeah, the cost of goods in the UK is so much higher do us all a favor, when you make comments like that, make sure that the other person you are refuting didn't live in the UK for 6 months and knows how much things cost there

As it has been demonstrated every time there is a minimum wage increase, the price of products and services do not go up in a 1:1 ratio or whatever it is you guys insinuate.

The cost of a quarter pounder in the UK in US dollars = $6.59
4.00 GBP = 6.58716 USD

[Packard fan]

Originally Posted by theunbrainwashed

Cost of a quarter pounder in the UK, about £4. Cost of a quarter pounder in the US, $3.79 give or take. Oh yeah, the cost of goods in the UK is so much higher do us all a favor, when you make comments like that, make sure that the other person you are refuting didn't live in the UK for 6 months and knows how much things cost there

As it has been demonstrated every time there is a minimum wage increase, the price of products and services do not go up in a 1:1 ratio or whatever it is you guys insinuate.

I think the pound's about 2 US dollars so that quarter pounder would be about 7 dollars in England.

[lycos679]

Originally Posted by Packard fan

I think the pound's about 2 US dollars so that quarter pounder would be about 7 dollars in England.

It doesn't look like the exchange rate is relevant. If the dollar gains or the GPB loses value the price of the Big Mac will stay the same but become cheaper for USD holders unless they (McD's) are importing, but then that is a whole other issue altogether.

[urbanlife78]

Why not just pay new hires the same as they are making on the other side of the mall?

[chuckmann]

This is a fascinating topic, IMHO, and offers a wonderful opportunity to study market conditions with regards to the employer-employee dynamic.

At first gland, it appears to me that what we are seeing is the playing field tilting towards advantage to the employee. In general, the employer is favored in these exchanges.

I'm also interested in the behavior of employers in this situation. A wise man once offered that anyone who wants to grow his business will do whatever it takes, be that raising wages in order to attract better employees, to taking a bit less to attract more customers and build the business long term.

I hope them bright boys at Harvard and Yale and Wharton and Stanford have their eyes on this situation.

[lycos679]

Originally Posted by chuckmann

This is a fascinating topic, IMHO, and offers a wonderful opportunity to study market conditions with regards to the employer-employee dynamic.

At first gland, it appears to me that what we are seeing is the playing field tilting towards advantage to the employee. In general, the employer is favored in these exchanges.

I'm also interested in the behavior of employers in this situation. A wise man once offered that anyone who wants to grow his business will do whatever it takes, be that raising wages in order to attract better employees, to taking a bit less to attract more customers and build the business long term.

I hope them bright boys at Harvard and Yale and Wharton and Stanford have their eyes on this situation.

Hey! You left out Univ. of Chicago!. We have the best economics department in the country.

[silverkris]

Originally Posted by shooting4life

Much higher costs and they have much higher prices as a result.

Two things can happen if your raise the price of labor

1. The price of the product goes up to offset the costs
2. People get laid off or hours reduced to keep costs the same

If the costs are too high to sell the product in the market and hours cannot be cut then the company goes out of business. This happens more often than people realize since so much can be found on line with from companies with reduced overhead.

Well, wouldn't an increase in wages lead to less staff turnover, as a benefit? It's not so cut and dried as you would make it.

[dsjj251]

Originally Posted by shooting4life

Much higher costs and they have much higher prices as a result.

Two things can happen if your raise the price of labor

1. The price of the product goes up to offset the costs
2. People get laid off or hours reduced to keep costs the same

If the costs are too high to sell the product in the market and hours cannot be cut then the company goes out of business. This happens more often than people realize since so much can be found on line with from companies with reduced overhead.

Actually more than 2 things can happen.

Productivity can go up, offsetting the price of labor, people who are happier in their jobs tend to perform better and better pay usually does the trick.

As someone else already stated, companies hate turn over. Have you even worked in retail and seen the lost revenue stats on a new cashier ??? Its enough to make your head spin if you have daily sales goals.

its even worse when it comes to the people on the sales floor. For example, a new stocker put the wrong price tag on a very expensive item. New guy doesnt know how to lift properly and breaks a 2000 dollar TV.

[elan]

Originally Posted by katzpaw

Half of Westfield Valley Fair Mall is in Santa Clara (minimum wage $8) and half in San Jose ($minimum wage $10).

"Philip Sandigo manages a shoe store on the $8-an-hour side. When San Jose raised the minimum wage, he lost about half his staff. They went to the stores on the side of the mall that paid $2 an hour more. Almost two years later, it's still a struggle to hire new employees. "We get the bottom of the barrel here," Sandigo says. "Not really focused. ... One guy came in high the other day."

On the other side of the mall the stores have increased costs that are cutting into profits - but better employees.

A Mall With Two Minimum Wages : Planet Money : NPR

He could just do a compromise and pay $9, it's worth a try.

[katzpaw]

Kohls pays about $7.50 hour, has high turnover, and treats employees as suspects not be trusted. They'll bring 10 people in for training knowing that most won't last a month or even a week. Meanwhile the local Sams Club has happier better paid employees and few vacancies.