Say what? Gotta call B.S. on that first sentence. Increasing minimum wage to almost double it's current rate will result in increased prices. The additional pay doesn't come out of thin air.audtatious wrote:...Thus, those that state simply increasing minimum wage by "x" will increase cost of product accordingly are incorrect. Research has shown that the result is more money moving through the economy, thus, more volume which keeps the cost lower... Thoughts?
Let's be clear, that's on a hamburger sammich. What's the rate increase for other goods and services? Funny how they don't tell you that. For that matter how many people walk into a McD's and buy JUST a Big Mac? Say the increase is a more realistic 25%, and you want a KFC 12 piece meal. Instead of the current $23.99 it jumps to $29.99.95_240 wrote:The .68 cent increase was done by an undergraduate student from the University of Kansas. His study was flawed and it was determined that it would be closer to $1.28 increase. Even if the companies still have a large profit they will still use the minimum wage increase as an excuse to increase their prices.
This doesn't just affect the burger flippers. What about retail sales clerks? What about hotel staff? And as stated before, if the manager is making $15 and you jump the salary on the staff they supervise up to that amount, how much do you increase the managers salary? I'm willing to bet that wasn't factored in.Ryan Chittum of the Columbia Journalism Review crunched the numbers and found that the price rise of 68 cents per Big Mac, or 17 percent overall, is only true for company-operated restaurants. Including franchises, which make up 80 percent of McDonalds restaurants, puts the increase at 25 percent. This post has also been updated to reflect that the study was not issued by the University of Kansas. The University of Kansas has clarified that Morelix, an undergraduate at the school, did not vet his research with the university. The report is not part of KU’s academic studies.
I never said it would not increase prices and I did say "some say".Rogue One wrote:Say what? Gotta call B.S. on that first sentence. Increasing minimum wage to almost double it's current rate will result in increased prices. The additional pay doesn't come out of thin air.audtatious wrote:...Thus, those that state simply increasing minimum wage by "x" will increase cost of product accordingly are incorrect. Research has shown that the result is more money moving through the economy, thus, more volume which keeps the cost lower... Thoughts?
I never claimed anythingRogue One wrote: Will the company owner(s) take a pay cut to cover the increased operating expense? No.
Will the stockholders take a smaller cut to cover the increased operating expense? No.
Will upper management take a pay cut to cover the increased operating expense? Not voluntarily.
Will management cut some of the minimum wage employees to cover the increased operating expense? If necessary, Yes.
Will prices increase to cover the increased operating expense? Yes.
If you increase the cost of operating a business, the primary way of covering those costs is increased prices. That's Economics 101.
Will this new found wealth make life easier for those living from paycheck to paycheck earning minimum wage? For a few, yes. But I know lots of folks making two to three times the current minimum wage that are living paycheck to paycheck. Additionally, when prices rise to cover the cost of the higher minimum wage, you're essentially back at square one.
This.XenonSE-R wrote:Typically social and economical issues such as this one come about from a large amount of people voicing the issue, and that fact brings me to the one sentiment I have regarding increasing minimum wage:
I fear for the future of a society that is largely fixated on striving for a comfortable and "livable" minimum.
It's any large corporation where profits are billions upon billions. Look at how the oil industry was continually attacked during the Bush years for their profits. Didn't matter their margins were less than 6% they were evil oil companies pissing on the little guy. I also find it comical that Apple, who has a 22% quarterly profit margin, is rarely attacked by these same people.WDRacing wrote:I hate when they use Walmart as an example.
No issues, I knew you would have a facepalm momentRogue One wrote:My apologies Audtatious. I knew we were on the same wavelength, I guess I was just out of phase.![]()
It will somewhat, but not truly linear. People are accepting minimalistic living via handouts today and a greater rate and it's sickening. Why work hard anymore?Rogue One wrote: I remember hearing one of the talking heads on FOX News say that minimum wage workers account for 4.7 percent of hourly paid workers. Essentially only 5% of Americans make less than $10 per hour. The minimum wage increase would bring their income up to just under $30K. But that's only part of the story. According to an analysis released by the Social Security Administration last November, 32.2% of Americans make just under $15K (minimum wage). Additionally, 53.2% of Americans make just under $30K, the proposed new minimum wage. Unless I've missed it, no one has mentioned that the massive pay increase would benefit any worker making less than $30K. Hmmm. Wonder how this affects the price of a burger?
I work with people like that and it absolutely burns me up. That was 1 damn good thing that came out of this last recession: the company I used to work for cut out a lot of the fat and kept the muscle, leaving a bunch of badass Ninja Engineers that cut through the red tape and got s*** done.Dattebayo wrote: over there browsing the internet basically getting d*** done all day and taking an hour lunch and coming back late and getting 75K a year for it.
You're right. Union backed OUR Walmart is getting people to strike for higher wages too. "Cindy Murray has been working at Walmart store No. 1985 in Laurel, Md., for 13 years. She’s stationed in the fitting rooms and earns $12.40 an hour." http://www.businessweek.com/articles/20 ... ur-walmartDattebayo wrote:I really don't think it's the "burger flippers" who are complaining about the wages...