What happens if Biden gets his $15 minimum wage passed?

[T. A. Gardner]

lol basic economics.
Business has to make a profit. they look at labor as a cost (which it is).
cut costs or raise prices is simple enough to understand, yet it eludes the Prog mind

For the Left, it's all about how you distribute the pot of money. Where the pot and money come from is never considered, it is simply assumed that it has always existed and will always exist. It's an extremely myopic view of economics where the past and future are irrelevant, only the present is considered.

 

[Airstrip One]

paying $15 to retail or unskilled
means less workers is more ways to drive out physical workforce in favor of a virtual world.

That means less demand for unskilled labor though -a vicious circle to undercut unskilled labor jobs

Economics is a confusing subject, as politicians can attest to.

 

[CFM]

For the Left, it's all about how you distribute the pot of money. Where the pot and money come from is never considered, it is simply assumed that it has always existed and will always exist. It's an extremely myopic view of economics where the past and future are irrelevant, only the present is considered.

Funny how those that do the least contributing want the greatest distribution from the pot.

 

[dukkha]

For the Left, it's all about how you distribute the pot of money. Where the pot and money come from is never considered, it is simply assumed that it has always existed and will always exist. It's an extremely myopic view of economics where the past and future are irrelevant, only the present is considered.

i posted somewhere. Progs are more concerned with equally dividing a small pie
MAGA types want to grow the pie -everyone gets a bigger slice, but they are unequal

"income inequality" is just disparity of income -nothing new -but they freak over it

 

[LV426]

They get laid off because their employer(s) can't afford the new wage.

But they CAN afford the new wage because of increased demand, which leads to increased consumer spending, which only helps businesses.

This is particularly true at jobs that have a marginal return on labor investment. That is, if someone making say $8.00 an hour produces $12.00 worth of productivity, then being forced to raise their wage to $15 an hour makes them unproductive.

But the thing you are forgetting is that there is increased consumer spending by wage increases...raising the minimum wage will increase disposable income by up to $6K per worker...extrapolate that across 58M workers, and you're looking at an increase of up to 1.5% to GDP.

The result is the employer has to cut labor to rebalance that ratio.

Wrong. Increased consumption will lead to business EXPANSION, not contraction.

If people are then unwilling to pay more for that service, then the employer has to lay off workers due to declining profits and demand for whatever they do.

Again, revenues would INCREASE, not decrease, because you're increasing GDP up to 1.5%.

Raising wages has consequences. It isn't a something for nothing proposition.

Yes, the consequence is increased economic activity. Basically, what Conservatives promise tax cuts would do, wage increases actually do instead.

 

[LV426]

Bullshit. You're looking at lumberjack boots, hiking boots and even military boots them labeling them all Nazi jackboots because they don't agree with your politics. Most people know I'm right about this.

If they vote for a Nazi, that makes them Nazis.

"Good Germans" is a myth.

 

[LV426]

i hate being at the point where being a moderate is a bad thing..
but I dont disagree in that we are at a bad point where one has to take a side.

I realize for Progressive loons the idea of compromise is anathema -
but for most Americans we still expect politicans to compromise for the common good -quaint as that may be

There is no compromising with fascists, liars, traitors, and hacks.

 

[CFM]

i posted somewhere. Progs are more concerned with equally dividing a small pie
MAGA types want to grow the pie -everyone gets a bigger slice, but they are unequal

"income inequality" is just disparity of income -nothing new -but they freak over it

Lefties operate under the concept of a zero sum game. They think that one person getting more means someone else has to get less. It's the only mindset they can have based on their use of terms like white privilege and institutional racism.

 

[CFM]

There is no compromising with fascists, liars, traitors, and hacks.

That's why those of us on the right don't deal with your kind.

 

[CFM]

If they vote for a Nazi, that makes them Nazis.

"Good Germans" is a myth.

If they were anywhere close to being the Nazis you claim they are, you would have disappeared a long time ago.

 

[Airstrip One]

If they vote for a Nazi, that makes them Nazis.

"Good Germans" is a myth.

"Good socialists" is a... wait, that's never even been a myth.

 

[gfm7175]

And you are a TRUMPTARD- ENOUGH SAID RIGHT THERE!

Oh wow... a shallow vocabulary for a shallow mind... how fitting.

 

[T. A. Gardner]

i posted somewhere. Progs are more concerned with equally dividing a small pie
MAGA types want to grow the pie -everyone gets a bigger slice, but they are unequal

"income inequality" is just disparity of income -nothing new -but they freak over it

That's the problem I alluded to in post 361. The Left sees the pie as fixed in size because they are only looking at the present. They want everyone to get an equal slice. They don't look at issues like, what happens when the pie is consumed? That's down the road in the future so it's irrelevant.

To use the parable as an analogy...

The Left wants to give everyone a fish but doesn't teach anyone to fish.

The non-Left teaches people willing to learn to fish and then they can decide what they will do with what they catch...

The Left's version of economics is really one about envy and instant gratification. It's a child's world view. What happens next week, or next month, is irrelevant.

 

[CFM]

But they CAN afford the new wage because of increased demand, which leads to increased consumer spending, which only helps businesses.




But the thing you are forgetting is that there is increased consumer spending by wage increases...raising the minimum wage will increase disposable income by up to $6K per worker...extrapolate that across 58M workers, and you're looking at an increase of up to 1.5% to GDP.




Wrong. Increased consumption will lead to business EXPANSION, not contraction.




Again, revenues would INCREASE, not decrease, because you're increasing GDP up to 1.5%.




Yes, the consequence is increased economic activity. Basically, what Conservatives promise tax cuts would do, wage increases actually do instead.

There is no increased demand for things using discretionary funds. The entire argument of the left about raising the minimum wage centered around those not making a "living wage" being unable to afford even the necessities of life. Nothing in the living wage argument had anything to do with the extras for which you claim demand would increase. Raising that wage to that level, according to the argument, would only get people to a place where they could afford to buy the necessities.

 

[dukkha]

There is no compromising with fascists, liars, traitors, and hacks.

poisoned hyperbole.. at least you aren't yelling Unity -no way that happens

 

[Dutch Uncle]

Oh wow... a shallow vocabulary for a shallow mind... how fitting.

Geeko isn't as loquacious like a manifesto-writing nutjob as yourself, INT/IBDa/gfm.

 

[LV426]

Not true. Here's an actual case where an employer raised everybody's wage / salary at his company to a minimum of $70,000...

To success. His company is still around today and is making more profit than they did before.

The first thing that happened at his company is that many of the highest paid workers took it as a slap in the face and quit.

Good! Cutting dead weight and people who aren't buying into the company was smart. They can test the labor market if they want. No one is stopping them from doing that.

Sure the lower paid workers loved it, but now he was faced with losing what were some of his best employees.

That's debateable...if an employee quits in righteous fury because someone else got a pay raise, that person isn't a great employee, never was, and never will be.

He in effect made employment less attractive for higher paid workers with greater skill sets. They saw themselves as now undervalued.

The poor babies.

With Chinese Disease going on, this policy has also slammed the company in trying to meet salary while having greatly reduced productivity.

It's not Chinese Disease, it's YOUR DISEASE because YOU WERE LYING ABOUT IT FOR ALL OF 2020.

You called it a hoax, remember?

You said it was "no worse than the flu", remember?

The guy is making it work, but it's definitely not optimal for either his company or him.

Wait - so it's working, but it's not optimal? According to whom? It's his business, he can run it any way he wants. He seems to think this is the best way, and he's the business owner, while you're just some shitposter on an anonymous forum.

 

[LV426]

lol basic economics.
Business has to make a profit. they look at labor as a cost (which it is).
cut costs or raise prices is simple enough to understand, yet it eludes the Prog mind

How does a business make a profit? By increasing revenues.

How do you increase revenues? By getting people to spend their money with you.

How do you get them to spend their money with you? Offer a product or service at a competitive rate.

Your labor cost might go up, but your revenues will go up by more.

 

[LV426]

The fact you keep following an actual Nazi in condemning me is just more proof you've gone around the bend, dear.

Follow him, how?

I never said I was coming for you. I just said you're pointless and worthless.

 

[Dutch Uncle]

They get laid off because their employer(s) can't afford the new wage. This is particularly true at jobs that have a marginal return on labor investment. That is, if someone making say $8.00 an hour produces $12.00 worth of productivity, then being forced to raise their wage to $15 an hour makes them unproductive. The result is the employer has to cut labor to rebalance that ratio. Or, the employer is forced to raise the price of their product / service. If people are then unwilling to pay more for that service, then the employer has to lay off workers due to declining profits and demand for whatever they do.

Raising wages has consequences. It isn't a something for nothing proposition.

Agreed. This is why the Democratic Party's ideology of Federal One-Size-Fits-All laws are heavily flawed.

They should follow the idea of treating the States as laboratories of democracy (stated by Justice Louis Brandeis) instead of trying to slap a 50-state wide solution across a nation of 328M Americans.