A funny thing happens at $15 per hour...

UsualName said:
The last minimum wage increase was accompanied by a business tax package to help with the transition. I would expect the same to happen this go around, if it goes anywhere.
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Businesses that pay their full-time employees less than 15/hr are obviously being subsidized at present. It's cost shifting, and its ridiculous to run an economy that way...
 
piezoe said:
Pure bullshit. You can't pass it on if you don't have a viable business without labor subsidies, otherwise you can. And remember: 1) it's phased in over time! ; 2) If the minimum goes up by 108% (7.25 to 15) over 4 years, the amount of labor cost increase passed on per annum to maintain constant profits, in the majority of cases, will amount to a tiny fraction of 108% of final price, the only exceptions being cases where under 15/hr labor is a major part of a final products cost. And even there its not much per year when spread out over 4 years.

If you can't afford to pay your full-time employees a living wage you don't deserve to be in business. Find something else to do, like go to work for someone who knows how to run a profitable business.
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The hit can be absorbed by megacorp just fine. We've delayed progressively raising wages so much that it will upend SB's who weren't counting on doubling salaries.
 
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piezoe said:
Pure bullshit. You can't pass it on if you don't have a viable business without labor subsidies, otherwise you can. And remember: 1) it's phased in over time! ; 2) If the minimum goes up by 108% (7.25 to 15) over 4 years, the amount of labor cost increase passed on per annum to maintain constant profits, in the majority of cases, will amount to a tiny fraction of 108% of final price, the only exceptions being cases where under 15/hr labor is a major part of a final products cost. And even there its not much per year when spread out over 4 years.

If you can't afford to pay your full-time employees a living wage you don't deserve to be in business. Find something else to do, like go to work for someone who knows how to run a profitable business.
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You don’t get to say which business is viable and which business isn’t.

your fruits are affordable because they are picked by illegals getting paid 3 dollars an hour. Are you willing to pay 10x for your produce?

Have you ever read about the supply chain for the materials to build your cell phone? I’m sure you don’t own a phone because those suppliers are unviable and as a result apple is an unviable company.

The minimum wage rewards the lazy (and I actually mean lazy) and disincentivizes the hardworking. It also helps suburban white kids from affluent families who get summer jobs waiting tables on cape cod.

no one is a price maker in the wage market. Everyone is a price taker. If you can’t pay market rate, you don’t get employees. The market rate in most places for semi skilled and skillled workers is over 15. Making the dumbest (the guy who can’t count so Mcdonalds created value meals) earn 15 will cause wages across the board to go up.

my final rant on this point is that raising the minimum wage will push us down a path where the only viable businesses are hedge funds, law firms, and big tech firms. That will strengthen our society.
 
Overnight said:
Free community college will not make dumb people smart. What would be a better alternative is free technical training.
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it will make them more educated. Community colleges (and my wife is on the boards of two) have strong focuses on technical training. No one reads Chaucer at these schools. They do read the instruction manual on a HAAS 3-axis milling machine.
 
piezoe said:
Businesses that pay their full-time employees less than 15/hr are obviously being subsidized at present. It's cost shifting, and its ridiculous to run an economy that way...
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Everything is cost shifting. Your smart phone makes apple a lot of money because they have essentially prisoners building them and actual human slaves sourcing the raw materials. Apple is an unviable business.
 
When they jacked minimum wage here... many of the restaurants started taking parts of the tips to cover the increased wage. My son told me many of his friends said they were netting less after the increase... then Covid hit.


https://www.cnbc.com/2021/02/08/rai...would-cost-1point4-million-jobs-cbo-says.html

Raising minimum wage to $15 would cost 1.4 million jobs, CBO says






piezoe said:
Pure bullshit. You can't pass it on if you don't have a viable business without labor subsidies, otherwise you can. And remember: 1) it's phased in over time! ; 2) If the minimum goes up by 108% (7.25 to 15) over 4 years, the amount of labor cost increase passed on per annum to maintain constant profits, in the majority of cases, will amount to a tiny fraction of 108% of final price, the only exceptions being cases where under 15/hr labor is a major part of a final products cost. And even there its not much per year when spread out over 4 years.

If you can't afford to pay your full-time employees a living wage you don't deserve to be in business. Find something else to do, like go to work for someone who knows how to run a profitable business.
More...
 
I have owned multiple small businesses and still do own one.


SunTrader said:
Two of us who have had (me), or still have (you), small businesses. And not surprised there are no others.

Also not surprised by all the know-it-all non-owners.
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This is a real life understanding of economics. Its nice when the left tells the truth instead shilling the shibboleths.

I have had clients watch their avocado business get destroyed and shift to Mexico as their water costs go up.

At the margin an increase in costs drives business elsewhere or closes down some businesses.

Most of these moron lefties like piezoe... can frame an argument that is all bullshit... they have no real life understanding of how business works.


Here4money said:
Does apple need to charge 1000$ for phones though? Let Agricorp try to pass on the cost to consumers at 5$ lettuce heads and see how many they sell. Either comps. see their bottom line reduced for paying living wages, or they'll lose market share to those willing to make 5c/head and not 45c/head
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