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That happens already, no need to raise minimum wage fowon't ese things to happen. You could lower minimum wage to a buck an hour and employers would still cut hours, benefits, and use automation to make more money.
Doubling minimum wage from $7.25 to $15.00 will put this practice into overdrive.
Really? Then why us the cost of a happy meal double what it was in the 80's?
Why is ice cream $6.75 for a pint and a half now instead of 3.25 for a half gallon? Why are portions getting smaller while prices go up? Why was a Mustang GT $3500.00 in 1972 and $35000.00 in 2016? Anyone who thinks increasing labor costs don't contribute to inflation is just a flat out moron. And how much more would my salary be worth now if minimum wage was still $2.90/hr that I started at in 1979? Minimum wage hikes put people on a one step up, two steps back treadmill their whole lives, canceling out the buying power that comes by earning more over time by gaining experience and getting raises and promotions.
Wages have been stagnant for 40 years, they have consistently lagged inflation except for the very wealthiest individuals.
You mentioned Mustangs, here is an example for you.
Quote:
In 1965, the sticker price of a new V-8 powered Ford Mustang coupe was $2,734.00 (the equivalent of $19,900 today), and the average production worker made $3.00 per hour; to purchase a new Mustang coupe with a V-8 engine, therefore, required 911 hours of work, or about 23 weeks. By 1985, the cost of an eight-cylinder Mustang had risen to $9,885.00 (today’s $21,100), while production wages had risen to $12.50 per hour, meaning that one needed to toil for just 791 hours (120 hours less than in 1965) to buy one. In 2005, the scales tipped in the opposite direction: the V-8 Mustang was priced at $25,815 (today’s $30,300), and a production worker made $23.92 per hour, requiring 1,079 hours of work to buy the car. The picture darkens a bit further in 2013, where the $31,545 Mustang requires a worker earning $27.15 per hour to put in 1,162 hours in order to pay the Ford off.
I live in NYC and recently NYC increased the minimum wage to $15 an hour. It goes into effect in 2 years. Our company starts you at $11 an hour and just increased their starting wage to $15 an hour immediately instead of waiting 2 years
The end result: We've been getting swamped with job applications and new hires. On top of it, the turnover rate has plummeted
I live in NYC and recently NYC increased the minimum wage to $15 an hour. It goes into effect in 2 years. Our company starts you at $11 an hour and just increased their starting wage to $15 an hour immediately instead of waiting 2 years The end result: We've been getting swamped with job applications and new hires. On top of it, the turnover rate has plummeted
Thanks for posting that, the folks who think that the minimum wage should never be raised totally ignore the cost of turnover. Walmart's turns over 5% of their workforce every month, that constant churn of employees is expensive and bad for the morale of other workers who end up having to train or at least babysit new employees constantly. Costco and In-n-Out figured that out years ago and pay more than minimum wage because they want employees who will stay with the company for more than 2 or 3 months.
Thanks for posting that, the folks who think that the minimum wage should never be raised totally ignore the cost of turnover. Walmart's turns over 5% of their workforce every month, that constant churn of employees is expensive and bad for the morale of other workers who end up having to train or at least babysit new employees constantly. Costco and In-n-Out figured that out years ago and pay more than minimum wage because they want employees who will stay with the company for more than 2 or 3 months.
On top of that...employees receiving public assistance have been booted off since all of our full time workers now make too much for Meidcaid, EBT, rent assistance, etc...
If anything Republicans should support a $15 an hour minimum wage as it kicks virtually everyone off any public assistance
I live in NYC and recently NYC increased the minimum wage to $15 an hour. It goes into effect in 2 years. Our company starts you at $11 an hour and just increased their starting wage to $15 an hour immediately instead of waiting 2 years
The end result: We've been getting swamped with job applications and new hires. On top of it, the turnover rate has plummeted
I definitely believe it, but I don't see how that's good for the economy.
It takes people off public assistance. At $15 an hour...nobody in NYC qualifies for ANY public assistance anymore=govn't saves money People pay higher taxes=govn't saves money
As far as the economy goes...NYC has one of the strongest economies in America with Brooklyn as America's strongest job market currently. NYC will survive
Good point, we spend 153 billion a year providing social service benefits to low wage workers, and what's hilarious is that the Republican answer to this is to keep minimum wage the same and increase the EITC which is a 56 billion dollar annual redistribution of wealth. Funny that the party that supposedly hates spending money can get down with that, isn't it?
Status:
"everybody getting reported now.."
(set 26 days ago)
Location: Pine Grove,AL
29,568 posts, read 16,556,695 times
Reputation: 6044
Quote:
Originally Posted by lifeexplorer
That is correct. When labor cost increases, the business must find ways to mitigate the increase so that it won't be passed on to consumers unless it's the last resort.
So please tell me what are those mitigation and how they are good for the poor.
Quote:
Originally Posted by Toyman at Jewel Lake
You have to remember, liberals don't understand math or economics. All they get are their wishes.
Ugh, Im still not sure what is going on here. We all seem to agree that cost is not automatically passed on to the customer, it is the last resort.
Why exactly are you asking for the mitigating circumstances when you agree with me ????? i also never mentioned the poor in my post, so there is that too. I think you are replying to so many people at one time in multiple threads that you are getting your debates mixed up
At best I think you are trying to argue that cost of the product to customers will rise when ever someone gets a raise and that is not true.
labor, overhead and all net liabilities is 5 million and net profit is 10 million, you can indeed give people raises without ever raising cost. Profit may get cut into, but not enough to raise prices. Is that what you were looking for ? I have now been with the same company for 5 years getting a raise for every single one, and have never seen prices go up, the way we deal with wage increases is to simply hire people with more stringent requirements, as well as aptitude tests. freight Trucks come once a week 100% full instead of 2 times a week at 50% or 75%.
Again, other than that, it looks like you are arguing just to argue because no where in these posts have you actually disagreed with me, are you simply surprised that we are on the same side of an argument for once ???
Wages have been stagnant for 40 years, they have consistently lagged inflation except for the very wealthiest individuals.
You mentioned Mustangs, here is an example for you.
Your reply only reinforces what I'm saying about the one step up, two steps back catch 22 that comes from the inflation caused by increasing labor costs.
Inflation would not have been as bad and there would be less need to adjust figures for inflation if not for increased labor costs.
I'm not saying that minimum wage increases are the only driving factor in inflation but they certainly don't help any.
Add in the fact that minimum wage is not supposed to be a lifelong career nor a "living wage" and the argument for it's existence at all is dubious at best because minimum wage will always be minimum wage no matter how many times you raise it, inflation will eventually catch up and the cycle starts all over again
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