Labor Markets: Hundreds of employees at the University of California at Berkeley are getting schooled in basic economics, as the $15 minimum wage just cost them their jobs. Too bad liberal elites fighting for $15 dont get it. A week after California Gov. Jerry Brown signed the states $15 minimum wage boost into law, UC Berkeley Chancellor Nicholas Dirks sent a memo to employees announcing that 500 jobs were getting cut. Coincidence? Not really. Last year, University of California President Janet Napolitano announced plans to boost its minimum wage to $15 at the start of next school year, independent of the state law. Since UC Berkeley was already in financial trouble it ran a $109 million deficit last year and is projecting a deficit of $150 million this year number crunchers there had to have factored in the higher mandated wage when making their layoff decisions. Those workers might want to have a chat with the folks at UC Berkeleys Center for Labor Research, who just days before Brown signed the wage-hike bill released a study touting the minimum wage as a boon to low-income household breadwinners. Rest of Article Here
The UC system has a budget of over $12 billion dollars. Dumping 100 $15 an hour employees saves them virtually nothing in comparison. Also, they have thousands of employees - if each one had taken a mere $1 per hour pay cut they could have saved these jobs.
Yup, this is exactly what I said would happen, and it did. It will continue to happen. Raising the minimum wage helps no one, it simply brings everyone else closer to the bottom. All that will happen is the cost of living will increase, and even more people will now be on the bottom rung of the earning ladder, and you will have more unemployment now. Leftist logic at work.
They ran a deficit last year but the layoffs are because of a minimum wage hike that hasn't even happened? More comical RW "reporting". Obviously they were laid off out of fear of the recession president trump will cause lol
Let me explain how budgeting works. When you are planning for next years budget, and you realize your salary expenses will increase by roughly 50%, you start canning people immediately.
Your post is correct, but has more to explain. America is sick of bad spending due to taxation. Once the Right Wing notices it's been a puppet for Corporations, it will notice We The People are mad about it. The Right Wing Conservatives are the very force they are fighting in fear of.
Actually no. It takes PEOPLE to maximize profits. Why would you, "Can People" to maximize profits? Oh, you make them check themselves out at Walmart and mcdonalds. Want me to tell you how people feel about labor when purchasing something? Basics.
Let me explain budgeting to you too. Salaries are a companies biggest expense. When it goes up 50%, they're going to bring it back down. When that means firing people, that's what they do. Often used in conjunction with such a tactic is raising the price of their product, offsetting the increase in salary, and simply raising the cost of living, now making $15 an hour a poverty wage. It is happening everywhere the minimum wage is being jacked up. That is the reality vs. liberal logic. For additional fun, check out the increase in crime in the liberal sanctuary city of San Franciso, and their struggles to understand reality vs. liberal logic.
I'm positive you think you know what budgeting is. I doubt you care how much your boss keeps and demands you to fire people and fill in the positions. I have the curse of being the boss in this perspective and watching Corporate America squeeze 98% of us for profits. Everyone can see this squeeze EVERYWHERE in business. Corporate Profits are at an all time high and workers wages are at an all time low. The weak minded that want more money tend to be conformists in this. The strong minded that want a better family and a better America tend to stir this up and challenge the Corporate stronghold on America. But that's basics to me. Anything else?
There is no more corporate America. The lazy, entitled, non-skilled socialists in this country drove them to other countries where they don't demand minimum wage for showing up to work 2 days a week and paid vacation for their cat's pregnancy.
