jediuser598 wrote:Suppose you have two employees each making $1 an hour and working 8 hours a day?
I don't think you're against a minimum wage, it's just where's the price at which we set it?
Also, a lot of these places run skeleton crews anyways (as anyone who has worked minimum wage jobs recently can attest). There's a certain point where you can't cut labor any more.
Ok, suppose you can't cut labor any more.
Then you can raise prices or you can lose profits.
Up to a point, of course.
Eventually you'll raise prices to a point where your sales will suffer and you'll run yourself out of business.
Eventually you'll reduce profits to zero and the business goes under.
So every time you raise the minimum wage you're also indirectly deciding what kinds of industries can exist and which can't. Anything rendered unprofitable by your new minimum wage is an industry that can no longer exist in America.
Adjusted for inflation, the highest minimum wage was in 1968 at about $11 per hour.
Adjusted for productivity, or how much you can do, or produce, the minimum wage should today be about $15 an hour. (Businesses are making more profit, or at least in income, but paying less in wages.)
Please note that all until the early 70s, the higher the productivity, the higher the minimum wage, indeed all wages.
Part of the reason our economy is still sputtering is that the wages are trending down.
Effective Official U-6 unemployment is just under %10.
No income, no purchases.
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.
jediuser598 wrote:Suppose you have two employees each making $1 an hour and working 8 hours a day?
I don't think you're against a minimum wage, it's just where's the price at which we set it?
Also, a lot of these places run skeleton crews anyways (as anyone who has worked minimum wage jobs recently can attest). There's a certain point where you can't cut labor any more.
Ok, suppose you can't cut labor any more.
Then you can raise prices or you can lose profits.
Up to a point, of course.
Eventually you'll raise prices to a point where your sales will suffer and you'll run yourself out of business.
Eventually you'll reduce profits to zero and the business goes under.
So every time you raise the minimum wage you're also indirectly deciding what kinds of industries can exist and which can't. Anything rendered unprofitable by your new minimum wage is an industry that can no longer exist in America.
Adjusted for inflation, the highest minimum wage was in 1968 at about $11 per hour.
Adjusted for productivity, or how much you can do, or produce, the minimum wage should today be about $15 an hour. (Businesses are making more profit, or at least in income, but paying less in wages.)
Please note that all until the early 70s, the higher the productivity, the higher the minimum wage, indeed all wages.
Part of the reason our economy is still sputtering is that the wages are trending down.
Effective Official U-6 unemployment is just under %10.
No income, no purchases.
What's the correct price for a tattoo?
What should a decent salad (a legit salad, not some Chik-fil-a crap no Sunday salad) cost?
DBTrek wrote:
Ok, suppose you can't cut labor any more.
Then you can raise prices or you can lose profits.
Up to a point, of course.
Eventually you'll raise prices to a point where your sales will suffer and you'll run yourself out of business.
Eventually you'll reduce profits to zero and the business goes under.
So every time you raise the minimum wage you're also indirectly deciding what kinds of industries can exist and which can't. Anything rendered unprofitable by your new minimum wage is an industry that can no longer exist in America.
Adjusted for inflation, the highest minimum wage was in 1968 at about $11 per hour.
Adjusted for productivity, or how much you can do, or produce, the minimum wage should today be about $15 an hour. (Businesses are making more profit, or at least in income, but paying less in wages.)
Please note that all until the early 70s, the higher the productivity, the higher the minimum wage, indeed all wages.
Part of the reason our economy is still sputtering is that the wages are trending down.
Effective Official U-6 unemployment is just under %10.
No income, no purchases.
What's the correct price for a tattoo?
What should a decent salad (a legit salad, not some Chik-fil-a crap no Sunday salad) cost?
Tell me, oracle, how much?
Now that's being absurd.
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.
The important point here is that a rise in minimum wage is going to first affect the number of workers. When you increase the price for something, demand falls.
The labor market is not exempt from supply and demand.
Focusing on the impact on prices is a red herring. A rise in minimum wage could have some affect on prices, but more likely, it will only reduce economic activity. There will be less of the same goods and services being sold, but prices could easily remain the same. The primary impact is on price fixing in the labor market, not all these other markets that are only indirectly affected.
To see the impact of these laws, you need to look at the change in employment after the law went into effect. Most likely, you will see some increase in unemployment, welfare applications, etc. I have my doubts that it will affect a whole lot outside of a few industries, honestly, but it will definitely affect the poor in a negative way.
If the left wants to actually do something about stagnant wages and subsistence living, they could -- I don't know -- stop advocating for the mass flooding and glutting of the labor market through unfettered immigration??
