Dear moron,
The raise in the min wage will reduce headcount, not INCREASE headcount...i.e. businesses will be perpetually short staffed and employees (who remain) will be doing double the work...
Now try and get a clue.
California Will Hike Minimum Wage To $15/Hour
- Thread starter Tsing Tao
- Start date
Dear moron,
The raise in the min wage will reduce headcount, not INCREASE headcount...i.e. businesses will be perpetually short staffed and employees (who remain) will be doing double the work...
Now try and get a clue.
What skin color? Many of those are welfare queens and buy steaks with their food stamps. Meaning, they don't patronize McD's anyway.
California is certainly fortunate to have politicians who are wise enough to know where to set wages. Maybe they could also determine the "fair" price for goods and services too? I mean, what good is a raise if the evil businessmen just raise prices on you?
This whole supply/demand market system is obviously outmoded. How lucky can we get in this country? We have federal judges to solve hot button social issues for us, thereby avoiding the messy democratic process. Now we have public servants who are brilliant enough to set wages, not just for now but five years in advance. This removes a major headache for business owners who had been struggling with what to pay employees. No more wasting your weekends poring over P and L spreadsheets, Jerry has done it for you.
California, Open For Business.
This whole supply/demand market system is obviously outmoded. How lucky can we get in this country? We have federal judges to solve hot button social issues for us, thereby avoiding the messy democratic process. Now we have public servants who are brilliant enough to set wages, not just for now but five years in advance. This removes a major headache for business owners who had been struggling with what to pay employees. No more wasting your weekends poring over P and L spreadsheets, Jerry has done it for you.
California, Open For Business.
The fact that you resort to snark to answer the question shows quite clearly that you have no answer and did not, actually, give it any thought.
It's more of an opportunity to attack broader objections that get recycled regularly.
Guys living in Canada advocating min wage hikes in the u.s. putting more people out of work, eliminate all sorts of starter jobs for young people and put more people on govt assistance.
http://www.forbes.com/sites/timwors...-a-minimum-wage-rise-job-losses/#7c3cdb178dc3
Wendy's Explains What Really Happens With A Minimum Wage Rise: Job Losses
http://www.forbes.com/sites/timwors...-a-minimum-wage-rise-job-losses/#7c3cdb178dc3
Wendy's Explains What Really Happens With A Minimum Wage Rise: Job Losses
- Last week the Wendy’s Company did a public service on its second-quarter earnings call by explaining how mandated wage hikes will lead to fewer jobs for the low-skill workers that progressives claim to be helping.
First, CFO Todd Penegor talked about the pressure to pay higher wages and said that “we continue to look at initiatives and how we work to offset any impacts of future wage inflation through technology initiatives, whether that’s customer self-order kiosks, whether that’s automating more in the back of the house in the restaurant. And you’ll see a lot more coming on that front later this year from us.”
They’ve not even passed a law yet to raise the minimum wage in general. Yet business is already planning how to deal with such a law if it is passed. That’s how come we can get some of the effects of a minimum wage change in advance of the actual change. Because, amazingly, businesses do actually plan for the future. They do things like budgets. And if they can see costs are going to rise they try to change things now, so as to not lose profit when those costs do change.
So, their first change is going to be looking at greater automation. This raises the productivity of the labor that they do employ, which is great. But it also means that for any given level of output they will be employing less labor: That’s what automation and higher productivity both mean. So, job losses coming here.
They also talk of price raising:
On last week’s call with securities analysts, Wendy’s CEO Emil Brolick was asked how the franchisees who own and operate Wendy’s locations could raise prices to offset the higher wage costs in places like New York. He replied that “our franchisees will likely look at the opportunity to reduce overall staff, look at the opportunity to certainly reduce hours and any other cost reduction opportunities, not just price. You know there are some people out there who naively say that these wages can simply be passed along in terms of price increases. I don’t think that the average franchisee believes that.”
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It’s entirely true that whatever rise in the minimum wage there is will hit all low wage employers the same. But the substitutes for fast food aren’t just other fast food chains. They are also things like making a sandwich at home, maybe even going home to eat. Thus price rises are going to feed through into a reduction in demand for the output of low wage labor. Simply because not all of the possible substitutes use low wage labor. So, again, job loses as the industry shrinks a little.
And note again the references to economizing on labor. That second reference to hours is interesting as well. For there’s obviously times of day when having a restaurant open is only marginal in terms of the sales covering the costs. We could, and I’m taking that statement as meaning this, see restaurants close for those marginal hours: perhaps open a little later in the day, close a little earlier in it. Having actually owned and run a deli that’s one thing we did do in just such circumstances. That, of course, will cut the hours of labor needed.
Other than employing less labor or raising prices there’s only the one other adjustment mechanism possible. And that’s to reduce profits. This would again shrink the industry for a reason that Adam Smith would recognize. There’s an average rate of profit across the economy and the capitalist pigs invest, by preference, in those companies and industries that have higher than that average level of profit. And very definitely prefer not to invest in those with a lower one. So, artificially reduce the profit margins of low wage employers by raising the minimum wage and those sectors will get less capital in the future. And thus shrink as a portion of the economy: that’s fewer jobs. Isaac Sorkin has a paper explaining exactly how this happens. Investment flows away from labor intensive outlets and flows to more automated ones, lowering the total employment in the sector over time.
It’s also true that Wendy’s can’t actually cover from profits the sort of minimum wage rises being talked about in this manner. Profits are around $120 million for a year, there’s 37,000 employees, if they all work 2,000 hours a year then the profits can pay for a $1.62 an hour pay rise and no more. Sure, play around with those numbers. But there really isn’t enough money in those profits to cover a $7.25 to $15 an hour rise, is there?
So, it will be shorter hours, more automation and some measure of price rises: all of which will reduce the amount of labor employed.
Yep, as we’ve been saying, a rise in the minimum wage leads to job losses.
Or it's simply deeper water than you should be splashing around in.
Does a minimum wage raise hurt workers? Economists say: We don't know
"There are many explanations for why the Scottish philosopher Thomas Carlyle first labeled economics the "dismal science," but here's another example of why the term may be apt.
"The Initiative on Global Markets at the University of Chicago's Booth School of Business polled 42 nationally ranked economists on the fundamental question of whether raising the federal minimum wage to $15 over five years would substantially reduce employment of low-wage workers. the most common answer was: "uncertain."
"That was the reply of 38% of the respondents. About 26% thought it would do so, and 24% thought it wouldn't.
"We'd call that a draw.
"What's striking about the result is that the employment effect of the minimum wage is "one of the most studied topics in all of economics," as economist John Schmitt observed a couple of years ago. After decades of scrutiny, evidently, no one has found enough empirical evidence that there is an effect.
"The employment effect of the minimum wage is 'one of the most studied topics in all of economics.' — Economist John Schmitt
"Of course, that's an argument in favor of raising the minimum wage, since what it tells us is that there's no discernible downside to providing low-wage workers with a boost from the current federal minimum of $7.25 an hour. And there's hardly question that it would help them. Last year, the Congressional Budget Office concluded that an increase even to $10.10 an hour would raise pay for 16.5 million workers, increase income for households earning less than three times the federal poverty line by a combined $12 billion, and move 900,000 people out of poverty."
More >>
Guys living in Canada advocating min wage hikes in the u.s. putting more people out of work, eliminate all sorts of starter jobs for young people and put more people on govt assistance.
http://www.forbes.com/sites/timwors...-a-minimum-wage-rise-job-losses/#7c3cdb178dc3
Wendy's Explains What Really Happens With A Minimum Wage Rise: Job Losses
- Last week the Wendy’s Company did a public service on its second-quarter earnings call by explaining how mandated wage hikes will lead to fewer jobs for the low-skill workers that progressives claim to be helping.
First, CFO Todd Penegor talked about the pressure to pay higher wages and said that “we continue to look at initiatives and how we work to offset any impacts of future wage inflation through technology initiatives, whether that’s customer self-order kiosks, whether that’s automating more in the back of the house in the restaurant. And you’ll see a lot more coming on that front later this year from us.”
They’ve not even passed a law yet to raise the minimum wage in general. Yet business is already planning how to deal with such a law if it is passed. That’s how come we can get some of the effects of a minimum wage change in advance of the actual change. Because, amazingly, businesses do actually plan for the future. They do things like budgets. And if they can see costs are going to rise they try to change things now, so as to not lose profit when those costs do change.
So, their first change is going to be looking at greater automation. This raises the productivity of the labor that they do employ, which is great. But it also means that for any given level of output they will be employing less labor: That’s what automation and higher productivity both mean. So, job losses coming here.
They also talk of price raising:
On last week’s call with securities analysts, Wendy’s CEO Emil Brolick was asked how the franchisees who own and operate Wendy’s locations could raise prices to offset the higher wage costs in places like New York. He replied that “our franchisees will likely look at the opportunity to reduce overall staff, look at the opportunity to certainly reduce hours and any other cost reduction opportunities, not just price. You know there are some people out there who naively say that these wages can simply be passed along in terms of price increases. I don’t think that the average franchisee believes that.”
Recommended by Forbes
JPMorgan ChaseVoice: Why Is A Strong Nonprofit Sector Key To Thriving Communities?
$15 Is Too Much Even For Those Who Support A Higher Minimum Wage
NetAppVoice: Oil And Gas Company Drills For Data In A Volatile Market
The 7 Most Dangerous Myths About A $15 Minimum Wage
Instead of $15, Or $7.25, There Should Be No Federal Minimum Wage At All
A $15 Minimum Wage Would Cost 6.6 Million Jobs. Yes, 6,600,000 Jobs
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It’s entirely true that whatever rise in the minimum wage there is will hit all low wage employers the same. But the substitutes for fast food aren’t just other fast food chains. They are also things like making a sandwich at home, maybe even going home to eat. Thus price rises are going to feed through into a reduction in demand for the output of low wage labor. Simply because not all of the possible substitutes use low wage labor. So, again, job loses as the industry shrinks a little.
And note again the references to economizing on labor. That second reference to hours is interesting as well. For there’s obviously times of day when having a restaurant open is only marginal in terms of the sales covering the costs. We could, and I’m taking that statement as meaning this, see restaurants close for those marginal hours: perhaps open a little later in the day, close a little earlier in it. Having actually owned and run a deli that’s one thing we did do in just such circumstances. That, of course, will cut the hours of labor needed.
Other than employing less labor or raising prices there’s only the one other adjustment mechanism possible. And that’s to reduce profits. This would again shrink the industry for a reason that Adam Smith would recognize. There’s an average rate of profit across the economy and the capitalist pigs invest, by preference, in those companies and industries that have higher than that average level of profit. And very definitely prefer not to invest in those with a lower one. So, artificially reduce the profit margins of low wage employers by raising the minimum wage and those sectors will get less capital in the future. And thus shrink as a portion of the economy: that’s fewer jobs. Isaac Sorkin has a paper explaining exactly how this happens. Investment flows away from labor intensive outlets and flows to more automated ones, lowering the total employment in the sector over time.
It’s also true that Wendy’s can’t actually cover from profits the sort of minimum wage rises being talked about in this manner. Profits are around $120 million for a year, there’s 37,000 employees, if they all work 2,000 hours a year then the profits can pay for a $1.62 an hour pay rise and no more. Sure, play around with those numbers. But there really isn’t enough money in those profits to cover a $7.25 to $15 an hour rise, is there?
So, it will be shorter hours, more automation and some measure of price rises: all of which will reduce the amount of labor employed.
Yep, as we’ve been saying, a rise in the minimum wage leads to job losses.
More Than One Million Walmart Associates to Receive Pay Increase in 2016
2016 action lifts average hourly full-time rate to $13.38; New paid time off plan gives full- and part-time associates greater control
http://news.walmart.com/news-archiv...lmart-associates-receive-pay-increase-in-2016
But then, maybe Wendy's business model is no longer competitive anyway. It could be that their slide started with the introduction of other labor related costs, like workplace safety regulations, mandatory indoor plumbing, or even wheelchair access.
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But it's irrelevant in the scope of the argument.