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Simple, businesses will raise prices to cover the cost of their employees OR fire half their staff to be able to pay the remainder.
This. It's fairly simple.
Businesses could have a lot more profit if they paid people $2 instead of $8 per hour. Why not do that?
We have minimum wage laws so that we at least set a standard for the actual humans living in our society, and not just the profits of our corporations. Basic standards of living.
To a degree a lot of that money is going to be coming back into the businesses in the form of people making upwards of TWICE as much money as they were before.
Wal-Mart just said they're raising the wages on 500,000 employees who make roughly minimum wage up to $9 an hour now and $10 next February.
Say an average worker is part time at 30 hours per week and is going from $8 per hour to $10 per hour. Still a fairly weak wage to raise your family on and live your life - but that person is going to be making an extra $3,100 per year to spend....an extra $1,500,000,000 collectively of purchasing power for the poorest segment of our society just by that one employer. I'm guessing at least a portion of that will be spent at Wal-Mart. Not to mention the savings of people being able to get off food stamps and welfare - and above all just for the general well being of those people. Financially and mentally that will be a well deserved boost.
I mean there are a lot of stories out there of Wal-Mart stores doing food drives to try and get some food for their employees since they have such a hard time buying it on their own. If you can't even afford food while still working as much as possible, something is wrong in society.
Businesses could have a lot more profit if they paid people $2 instead of $8 per hour. Why not do that?
We have minimum wage laws so that we at least set a standard for the actual humans living in our society, and not just the profits of our corporations. Basic standards of living.
To a degree a lot of that money is going to be coming back into the businesses in the form of people making upwards of TWICE as much money as they were before.
Wal-Mart just said they're raising the wages on 500,000 employees who make roughly minimum wage up to $9 an hour now and $10 next February.
Say an average worker is part time at 30 hours per week and is going from $8 per hour to $10 per hour. Still a fairly weak wage to raise your family on and live your life - but that person is going to be making an extra $3,100 per year to spend....an extra $1,500,000,000 collectively of purchasing power for the poorest segment of our society just by that one employer. I'm guessing at least a portion of that will be spent at Wal-Mart. Not to mention the savings of people being able to get off food stamps and welfare - and above all just for the general well being of those people. Financially and mentally that will be a well deserved boost.
I mean there are a lot of stories out there of Wal-Mart stores doing food drives to try and get some food for their employees since they have such a hard time buying it on their own. If you can't even afford food while still working as much as possible, something is wrong in society.
Probably not. Wal-Mart has an after tax profit of around $16 billion per year. If they give an extra $1.5 billion to their employees they still have plenty of money left over and a portion of that $1.5 billion given to their employees will just recycle itself right back to the store. The store brands itself quite a bit to lower class people, and most of their employees are lower class people with strong brand loyalty.
There's no reason to raise prices if they're set at a current point where they rake in $16,000,000,000 per year in final profit. They would just lose some of their competitive advantage and drive people away to the Targets of the world.
The Walton family is worth $144,000,000,000........I'm pretty sure they aren't going to be affected by giving their employees an extra $2 an hour.
The average employees income will raise by 0.000002% of the Walton's net worth
Clueless. You act like even if Wal Mart could afford it that every single other business affected by it can. Seems you are unable to understand the big picture.
Wal Mart is raising wages all on it's own without a law with wide ranging ramifications forcing it to.
Clueless. You act like even if Wal Mart could afford it that every single other business affected by it can. Seems you are unable to understand the big picture.
I was speaking specifically of Wal-Mart and didn't say anything on the profit margin of other companies, which will vary greatly. I'm well aware of how the economy works.
I was speaking specifically of Wal-Mart and didn't say anything on the profit margin of other companies, which will vary greatly. I'm well aware of how the economy works.
Go "clueless" yourself.
This isn't a thread on Wal Mart. Despite that, Wal Mart is going to raise prices to cover these wage increases.
This isn't a thread on Wal Mart. Despite that, Wal Mart is going to raise prices to cover these wage increases.
They specifically announced that the move will cost the company around $1 billion and it will be handled within their current profits, as they are in a highly competitive business and can't afford to push the expense to the consumer in the form of higher prices.
I don't know why they wouldn't just push the increase through prices though?? They have $485 billion in sales per year.
Pushing through the wage increase would mean raising average prices in their stores by 0.2%.
No one is going to notice if their $43 purchase now costs $43.09.
They specifically announced that the move will cost the company around $1 billion and it will be handled within their current profits, as they are in a highly competitive business and can't afford to push the expense to the consumer in the form of higher prices.
Watch. I'll also bet they have a smaller work force this time next year.
Quote:
I don't know why they wouldn't just push the increase through prices though?? They have $485 billion in sales per year.
Pushing through the wage increase would mean raising average prices in their stores by 0.2%.
No one is going to notice if their $43 purchase now costs $43.09.
Where did I argue for a flat tax? I didn't. I'll have to go with you doing this on purpose.
Quote:
Originally Posted by pknopp
The answer is simply making all income taxed at the same rate.
That is what I call a flat tax. I don't know what you call it. And I frankly don't really care.
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