Topic: We Are Seeing The Effects Of The Minimum Wage Rise In San Francisco - page 2. (Read 1439 times)
July 08, 2015, 10:45:59 AM
So the cost goes up ,the prices goes up and the labor wage increases. The increase in minimum wages is nothing new though. But then best thing a country can do to its labors is actually provide them employment according to their capabilities. In a way , minimum wage destroys a sense of competition.
July 08, 2015, 10:41:08 AM
You might consider that businesses that can't pay enough to pay their workers might have been a wrong business model from the start. I mean you could pay workers like the inmates in a prison but this only can survive with certain circumstances. That is, no choice to work different things.
At the end... state has to make sure that the citizens can eat and live. And it's unecononomical when employees has to get money from the state on top only so that they can survive. That would be supporting unhealthy businessforms. And every taxpayer has to pay for it.
Surely that won't work.
At the end a minimum wage is something good in an environment where there are less jobs than workers. The power is simply not balanced so that the workers can be exploited. I mean people having to do three jobs and it's still not enough? Nothing justifies that. The state, so in fact every citizen, should take care about all other citizens too. Otherwise the state has to pay for it with monetary bonuses or costs for sick people and so on.
At the end... state has to make sure that the citizens can eat and live. And it's unecononomical when employees has to get money from the state on top only so that they can survive. That would be supporting unhealthy businessforms. And every taxpayer has to pay for it.
Surely that won't work.
At the end a minimum wage is something good in an environment where there are less jobs than workers. The power is simply not balanced so that the workers can be exploited. I mean people having to do three jobs and it's still not enough? Nothing justifies that. The state, so in fact every citizen, should take care about all other citizens too. Otherwise the state has to pay for it with monetary bonuses or costs for sick people and so on.
July 08, 2015, 10:29:19 AM
It's basic math folks. Been saying this for sometime but somehow it never penetrates the elitist utopians minds. Another utopian job killer. One thing minimum waged does is destroy competition for labor. Those that want to work but are less capable will be overlooked for those more capable (at least on paper). Those less capable but ambitious cannot compete for wages since they won't have a chance to begin with. What say you?
Read More : http://www.forbes.com/sites/timworst...rtner=yahootix
Hasn't worker wages gone up ever since the beginning of this country? The cost of things go up...the prices go up...the workers wage goes up. It seems like this is the normal routine for this type of economy. Not sure if this is a good trend, but it's certainly nothing new. Businesses that cannot keep up with this go under, and new ones emerge. This has always been the way. It doesn't seem right to suggest that if a business can't pay their workers the standard pay of the times, that the workers should work for less.
People losing jobs is nothing new in this economy. Businesses do not shed tears when they lay workers off, they do this primarily for cost-effectiveness. That's why they can pack up and outsource to Mexicans/Chinese/East-Indians/whatever...- because they'd rather pay half to someone else than keep Dave and Tim's family eating on a fair wage.
July 08, 2015, 10:18:46 AM
That doesn't make any sense though. So let's say Chipotle has to increase the costs of its food. Now there's a demand for a way to produce cheaper meat. This in turn spurs the economy, after all someone has to create the product, manufacture it and sell it. More jobs have been created by this. Or think of it like this, the costs of meat have gone up, so people will buy less of it, but other food sources will be able to sell more products. In the end, there are plenty of jobs created. It's the manner of jobs being created that is the argument. This is stimulating the economy on the backs of businesses. This goes to a fundamental question about what businesses should be for. Are they for making a profit, or do they owe their employees?
For a restaurant like Chipotle about 30% are for product, 30% for labor and the rest for overhead with about a 5% profit, which is pretty low. Product (meat) prices have gone up.
For Chipotle, those not in San Fran raised their prices by 4%, San Fran had to raise theirs by 10% due to the new labor laws.
July 08, 2015, 09:38:02 AM
That doesn't make any sense though. So let's say Chipotle has to increase the costs of its food. Now there's a demand for a way to produce cheaper meat. This in turn spurs the economy, after all someone has to create the product, manufacture it and sell it. More jobs have been created by this. Or think of it like this, the costs of meat have gone up, so people will buy less of it, but other food sources will be able to sell more products. In the end, there are plenty of jobs created. It's the manner of jobs being created that is the argument. This is stimulating the economy on the backs of businesses. This goes to a fundamental question about what businesses should be for. Are they for making a profit, or do they owe their employees?
July 08, 2015, 08:52:41 AM
It is true that trying to benefit workers through minimum wage increases is theoretically not the most economically optimal thing to do. Ideally the best thing would be if there was an excess demand for labor relative to labor supply, but that simply cannot happen if we get stuck in a situation where there are too many unemployed people. So minimum wage, despite its non-ideal side effects, may be the next best thing.
The problem in the U.S. is they chose to let too much immigration in before they started considering a drastic increase in the minimum wage. Now it's too late. They will not be able to raise the minimum wage without creating substantial unemployment problems. There are too many people working in low level jobs, and there is barely enough demand for all these workers the way things are already, as evidenced by the fact that many of the unemployed are finding it challenging to even obtain entry level work. It's a bad situation.
The problem in the U.S. is they chose to let too much immigration in before they started considering a drastic increase in the minimum wage. Now it's too late. They will not be able to raise the minimum wage without creating substantial unemployment problems. There are too many people working in low level jobs, and there is barely enough demand for all these workers the way things are already, as evidenced by the fact that many of the unemployed are finding it challenging to even obtain entry level work. It's a bad situation.
July 08, 2015, 08:43:06 AM
Quote
As we keep trying to point out to people there really isn’t anything even remotely resembling a free lunch when it comes to the discussion of wages and labor. Meaning that just because well meaning liberals wave their magic wand and decree that wages will rise there will indeed be countervailing effects. And in San Francisco, where the minimum wage was recently raised we did indeed see that comic book shop insisting that it just couldn’t survive. And now we’ve another tale, this time from Chipotle. Beef prices have been rising around the country so they’ve raised the prices, around the country, of their beef products. Wages in San Francisco have been rising strongly so they’ve raised the prices of all their products in San Francisco strongly. There really is no free lunch. A rise in wages will come out of either less labor being employed, lower profit margins (and fast food doesn’t have those wide enough to take the strain) or price increases to consumers.
It's basic math folks. Been saying this for sometime but somehow it never penetrates the elitist utopians minds. Another utopian job killer. One thing minimum waged does is destroy competition for labor. Those that want to work but are less capable will be overlooked for those more capable (at least on paper). Those less capable but ambitious cannot compete for wages since they won't have a chance to begin with. What say you?
Read More : http://www.forbes.com/sites/timworst...rtner=yahootix
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