Robert Reich: 7 Reasons Why the Minimum Wage Should Be Raised to $15 an Hour!

firefighter34 said:
Why should I believe the additional overhead employers will have to pay will come at the expense of company profits? I think you geniuses are taking an awful lot for granted. Someone explain it to me. Are we also going to pass laws that private companies can't lay people off or raise their prices? Cuz if you dont, I guarantee they will take one or both of those actions before allowing their profits to take a hit.
Click to expand...

So companies' profits never vary?
 
Rune said:
So companies' profits never vary?
Click to expand...

Of course. But what's that got to do with anything? Overhead doesn't vary. Wages don't vary. They never know exactly what their profits will be, but they do know exactly what their expenses will be. So logically, if that number goes up, the number they have to make to avoid losing money goes up. They could theoretically make more gross revenue, atleast for a short honeymoon after the law passed, because alot of people would have twice as much money to spend. But the effects on business would be far reaching. Most businesses operate on a 5 to 6% profit margin, after subtracting wages, rent, utilities, wholesale merchandise, and taxes. Walmart operates at 3%. The reason they make billions is dealing in bulk sales. They have 5500 stores worldwide. But vast majority of their employees are close to minimum wage. If history is a guide, and they stay anywhere around the historical profit margin, how can they stay in business under the proposed $15 an hour wage without raising prices or laying people off or both? Furthermore all of their vendee and wholesalers would also be affected in a similar way, so if they have to likewise raise prices, that adds more to Walmart's overhead. I have no issue with people making more money, I'm just saying it's a more complicated issue than just pronouncing a new minimum wage. If once the market adjusts, $15 only buys what 7.25 used to buy, then what purpose did it serve?
 
firefighter34 said:
Of course. But what's that got to do with anything? Overhead doesn't vary. Wages don't vary. They never know exactly what their profits will be, but they do know exactly what their expenses will be. So logically, if that number goes up, the number they have to make to avoid losing money goes up. They could theoretically make more gross revenue, atleast for a short honeymoon after the law passed, because alot of people would have twice as much money to spend. But the effects on business would be far reaching. Most businesses operate on a 5 to 6% profit margin, after subtracting wages, rent, utilities, wholesale merchandise, and taxes. Walmart operates at 3%. The reason they make billions is dealing in bulk sales. They have 5500 stores worldwide. But vast majority of their employees are close to minimum wage. If history is a guide, and they stay anywhere around the historical profit margin, how can they stay in business under the proposed $15 an hour wage without raising prices or laying people off or both? Furthermore all of their vendee and wholesalers would also be affected in a similar way, so if they have to likewise raise prices, that adds more to Walmart's overhead. I have no issue with people making more money, I'm just saying it's a more complicated issue than just pronouncing a new minimum wage. If once the market adjusts, $15 only buys what 7.25 used to buy, then what purpose did it serve?
Click to expand...

What a crock of shit.
If any of that were going to happen it would have happened every other time the wage was raised.
 
signalmankenneth said:
The esteemed economist explains how it helps everyone, and the overall economy.

http://www.alternet.org/print/econo...ons-why-minimum-wage-should-be-raised-15-hour

news-lead-570.jpg
Click to expand...


Proponents of a nationwide minimum wage never answer why the wage in downtown new york has to be the same as rural alabama.

The two areas have totally different economies and gdp's that they may well be in different countries.

I think different states setting the minimum wage is good enough. 15$ may well be necessary in new york but it would destroy a weaker economy.

Its like advocating that greece have the same minimum wage as germany.
 
Trying to discuss economics with a liberal is like trying to teach a fish to walk on land. They just don't have the capacity to learn. They are uneducable.
 
Sounds like the same silly justifications you hear all the time from the left none of which manifest in reality.
Let's start with the biggest hole in the min wage theory. Cost of living varies dramatically across the country. Why use a single number ? Because of this, the min is meaningless many places. In the middle of the road cost of living wise they can't get help that low (at least when the economy still had a pulse). Supply and demand found an equilibrium as it always does. Ditch the min and the appropriate rate will set itself. As it always does.
 
It seems like every time the minimum wage is raised, we're told that our economy will collapse.

It hasn't happened.
 
Legion Troll said:
It seems like every time the minimum wage is raised, we're told that our economy will collapse.

It hasn't happened.
Click to expand...

They are so sure they are correct in their predictions and it always turns out that small businesses and big retail outlets alike do better when the minimum wage goes up. Republicans only see the short term. They know they will have to pay their employees more and they can't stand the thought of that.
 
Leonthecat said:
They are so sure they are correct in their predictions and it always turns out that small businesses and big retail outlets alike do better when the minimum wage goes up. Republicans only see the short term. They know they will have to pay their employees more and they can't stand the thought of that.
Click to expand...

They pretend that they care that the working poor may have their hours cut and insinuate that lower ages would benefit poor people.
 
Celticguy said:
Sounds like the same silly justifications you hear all the time from the left none of which manifest in reality.
Let's start with the biggest hole in the min wage theory. Cost of living varies dramatically across the country. Why use a single number ? Because of this, the min is meaningless many places. In the middle of the road cost of living wise they can't get help that low (at least when the economy still had a pulse). Supply and demand found an equilibrium as it always does. Ditch the min and the appropriate rate will set itself. As it always does.
Click to expand...

Except it isn't a theory, shit on a stick.
Everytime it is raised you idiots run the same bullshit up tje flagpole.
Guess what?
Your lies nevet come to fruition.

One would think you idiots would remember that and shut the fuck up but apparently you are too stupid.
 
You must log in or register to reply here.
Back
Top