$10.10 Minimum Wage Would Actually Create New Jobs: Study
- Thread starter gwb-trading
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Nonsense. Actually, we increased employee compensation quite a lot this year, in order to lower turnover and do a bit of raiding. While we're aware of what our competition is targeting for margin (the supply chains overlap a lot), and generally what they're paying their people, we made the move regardless. We expect to expand market share primarily through productivity gains. Our costs have risen, our target margin is unchanged, yet we will not be raising prices (except to account for the cost of inputs, which is typical of the sector).Quote from Max E. Pad:
Ricter school of management
"More disposable income = more spending, except in the latter case [cutting taxes], it will be a much larger boost to the economy as the people effected are more numerous and have more income than min wage workers."
There you have it in your own words, a multiplier and a reverse multiplier. The segment of the population receiving minimum wage is small. Thus it's not stretch to consider that the overall costs may well be exceeded by the overall benefits.
How Raising the Minimum Wage Would Benefit McDonaldâs and Walmart
By Rick Newman | Daily Ticker â Thu, Dec 5, 2013 9:27 AM EST
"Youâre not likely to hear the CEO of any company that employs a lot of low-wage workers saying the minimum wage ought to be higher. But if it were, such companies might turn out to be unlikely beneficiaries.
"The minimum wage, currently $7.25 an hour at the federal level, is getting renewed attention as a weak recovery proceeds without many new jobs that pay enough to support a family. Todayâs protests against fast-food chains such as McDonaldâs (MCD), Wendyâs (WEN) and Taco Bell (YUM) in dozens of cities are a new phenomenon, since low-paying fast-food and retail jobs used to dominated by young people likely to move onward and upward. As such jobs have become a better-than-nothing career for 30- and 40-somethings, pressure has grown for employers to raise pay so their workers can enjoy a decent standard of living.
"âItâs well past the time to raise the minimum wage,â President Obama, who favors a $10.10 minimum wage, said in a recent speech. âIt means workers have more money to spend, to save, maybe to eventually start a business of their own. It will be good for our economy. It will be good for our families.â
"Market forces arenât on the workersâ side, however, which is part of the problem. More than 11 million Americans remain unemployed and many others without jobs have stopped looking for work. So the pool of people qualified to do low-skill jobs is a lot bigger than the number of workers needed, which makes it a buyersâ market. And no single company is likely to voluntarily raise pay (otherwise known as âcostsâ) if competitors donât. Shareholders would wail, justifiably, and the competition might end up with a cost advantage.
Related: Poverty Is America's "Only Growth Sector": Howard Davidowitz
"Thatâs why new laws raising the minimum wageâat the federal or state levels, or bothâmight do more good than harm. The federal minimum wage hasnât been raised since 2009, and since 1980 it has risen by less than inflation. Perhaps more importantly, a higher minimum wage applied to all companies equally could take pressure off the Walmarts (WMT) and McDonaldâs of the world to singlehandedly help workers in the hope that other companies would follow.
"But wait! Wouldnât a higher minimum wage push up prices and curtail profitability? Maybe, maybe not."
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Its assinine to say raising the minimum wage on walmart and mcdonalds would benefit them.
Raising the minimum wage on every business besides mcdonalds and walmart might be beneficial to walmart and mcdonalds, but if you were to make them pay more it would be a net negative to them, there is no free lunch.
If raising wages at mcdonalds was truly beneficial to mcdonalds then they would have raised their wages on their own already. They dont pay shit wages just to fuck with people, they pay shit wages because it is more profitable for them to pay people as little as possible.
Some mentioned taxing a particular sector might be punitive.
I would like to reiterate... that when the govt spends trillions more than in takes in then pays interest to a private bank....
all income taxes are punitive.
income taxes are population slavery... and a way to increase class disparity.
There is simply no reason to for income taxes when you could just spend more. It would be far better for the economy and far more fair. It would also encourage people to work their asses off and and invest and spend.
I advocate... capping the budget where it is and drop income taxes. The economy will boom. And if there has to be some deficit spending... the spending will create inflation.. which will cause receipt will go up.
That way we grow and inflate into a balanced budget and we do not need income taxes.
I would like to reiterate... that when the govt spends trillions more than in takes in then pays interest to a private bank....
all income taxes are punitive.
income taxes are population slavery... and a way to increase class disparity.
There is simply no reason to for income taxes when you could just spend more. It would be far better for the economy and far more fair. It would also encourage people to work their asses off and and invest and spend.
I advocate... capping the budget where it is and drop income taxes. The economy will boom. And if there has to be some deficit spending... the spending will create inflation.. which will cause receipt will go up.
That way we grow and inflate into a balanced budget and we do not need income taxes.