Restaurant Workers Lose Their Jobs Over Newsom’s $20 Minimum Wage

What do you men “they cant pay” ?

 

It’s basic math based on the actuall price of a Big Mac in California.

The grill size came from McDonalds grill spec. My neighbor owns 3 McDonald’s in Des Moines, and he has these

https://mcd.welbilt.us/Product/fam_lmbewt/Master-Series---Electric-XPress-Grill---Model-XPE36

 

They can’t afford to pay that type of wage without raising prices so high no one will buy their products. Then they shut down.

 

Exactly. That's because most of them have never had any real world experience. They fail to grasp the fact that if the price of a commodity is artificially increased less of that commodity will be consumed.

 

yes they can.

Like I said, my neighbor owns 3 McDonalds and he makes a damn good living. He, as the owner makes about $250k a year on the slow store, and around $350-$400 on the busy stores (he told me that himself)

If they cant pay a living wage they are doing it wrong. All due respect but your missing the point. The minimum wage hasn't been raised in 15 years. The problem is that we have been told that the guy who owns things should make all the money, and that the government should then subsidize his workers so he can maintain "profit margins". And by "government", I mean you and I thru our taxes.

Rant: Look, Jeff Bezos is worth $800 BILLION, and he is currently FIGHTING against unions because they want a living wage. There are currently over 4000 warehouse workers, working full time, that require government assistance to live. If you think I'm making this up, here a link to Fox:

now Lets say just for the sake of the discussion, that to pay them a living wage would cost an extra $400,000,000 (thats $100k per person).....THATS .05% of his current net worth. AND HES FIGHTING IT !!!!

 

What subsidy?? How do you know that everyone gets welfare? Regardless if they are working and qualify for public assistance so be it. It's much better helping people with jobs to increase their human capital through on the job experience which will result in wage increase than having them sit at home doing nothing.

Every business has a model based on production costs including labor, risk analysis, profit margin, pricing, tax analysis, and market analysis predicted economic demand. If the business model show that an acceptable profit can be made production begins. If labor costs are artificially increased production costs increase and the business model does not show acceptable profit, production is terminated, and people are laid off. ECON 101.

Your analysis fails to understand that people move up and earn higher and higher wages as their human capital increases by on the job experience. IIRC most people who are currently in the bottom income quintile will be in the middle quintiles within ~ 5 years.

 

Then stop complaining about how much the government spends. You cant claim it OK now that you've been shown that taxes subsidize the employer. And I agree that people who work build human capital, but the minimum wage was designed for teenagers and part time jobs. But now, its becoming the norm for many jobs. I for one don't want to subsidize and employer. Just like the employee, if you cant pay a living wage, then you shouldn't be in business. Cant the business owner use that same "experience" to better themselves and find a better business ?

That business model need to account for real wages, and not subsidized wages. How do you "artificially inflate labor costs" ? That right there is a bad business plan, and the employer is responsible for that. Thats BAD PLANNING on the business owners part

I never failed to understand that. I pointed it out as part of the business plan ! But when the starting point is low, all other incomes become lower by association. We have a minimum wage that is designed to keep all wages lower thru association. Ever wonder why we don't have a maximum wage?

I have shown in these very board many times where multinational corporations pay minimum wage and get the government to subsidize their wages. This isnt a flaw in their planning, its a FEATURE of said plan. And YES this would be location based COLA but it needs to happen.

This country cannot survive the income disparity we have today. Any true economists will tell you that. The best analogy I ever read was the monopoly analogy, and this was the one that used Bezos and Musk. Basically it said that when you play monopoly, and you land on someones property, you have to pay a tax to them. But as the properties become controlled by fewer and fewer people, the money gets distributed to fewer and fewer hands, and eventually when all the properties are owned by one or 2 people, the game stops....

We currently have 2 people with more wealth than 3/4 of the rest of the country COMBINED. Thats just not sustainable.

 

The minimum wage minimizes teen employment.

Wealth is not a zero sum proposition. We need more people who create huge wealth not less. Wealth creation benefits everyone. Your true economists are Marxists.

The business model has nothing to do with subsidies.

The metric for economic success is the rate of the standard of living growth. A good measure of the is real median household income.

 

That's not what I asked. So I see you're just FOS. Never mind.

 

I'm not Ok subsidizing companies.

 

the right are trying to lower the age for child labor, seems there is a shortage

 

but that is what happens

"Wal-Mart Memo Suggests Ways to Cut Employee Benefit Costs " 2005

http://www.nytimes.com/2005/10/26/business/26walmart.ready.html?pagewanted=all

"Wal-Mart executives said the memo was part of an effort to rein in benefit costs, which to Wall Street's dismay have soared by 15 percent a year on average since 2002. Like much of corporate America, Wal-Mart has been squeezed by soaring health costs. The proposed plan, if approved, would save the company more than $1 billion a year by 2011."

"Ms. Chambers acknowledged that 46 percent of the children of Wal-Mart's 1.33 million United States employees were uninsured or on Medicaid."

an interesting Article, Walmart claims Healthcare raising by 15% a year back in 2005 under complete republican control...

 

Source??

 

sure

"The Republican push to weaken child labor laws, explained "

https://www.vox.com/policy/2023/5/3/23702464/child-labor-laws-youth-migrants-work-shortage

 

Typical “headline doesn’t match the content “ story. Curiously only Republican lawmakers are highlighted. When Democrats are in favor they are referred to as lawmakers.

 

sure

 

The Vox story is an opinion piece masquerading as a news story. Are there any Democrats in support of all this?

 

Bad news for California.
California’s $20 Fast Food Wage Hike Spells Trouble for the State (msn.com)

 

The more money in the hands of fewer and fewer people is bad for ANY economy

This is ECON 101…

 

You surrender is accepted

 

Progressives again fail to understand Econ 101. If the price of labor is increased fewer people will be employed.

 

What economics book is that from? Are you claiming that the upper quintile is stealing from the lower quintiles? The measure of economic growth is the growth of the standard of living. Capitalism has increased the standard of living at a greater rate than any other system.

The wealthy invest in the future to the benefit of all.

 

What Governor Gavin Newsom ought to do is reduce the minimum wage in California to what it was before. I may not know what it was. There must have been a reason for this. If you look at the people working in the sheltered workshops in that state, workers like that would have the luxury of the $20 an hour in their jobs. The high classed foreman in those places and other perfectly normal people don't think the handicapped workers understand the concept of money. I mean the ones that are mentally disabled can't work at regular jobs.

 

Your argument is pretty much like playing chess with a pigeon. You knock over all the pieces, crap on the board, then declare you won.

 

It's not a company's job to provide health insurance. It's a benefit. If you don't like it, go work somewhere else. There are tons of jobs open right now. That's not corporate welfare. It's welfare to people who choose to work at a place that doesn't provide insurance or those who don't choose to buy the insurance that they company provides.