if liberals are against corporations, why do they propose a higher minimum wage?

I already know what you're thinking, you're going to say, a higher minimum wage would punish corporations, so how can my thread title be accurate?

well thats true, on the surface, it would "punish" them in essence, but it would also reward them... follow the money... an employee lets say gets paid double what they normally get paid now... and as a result, prices on products and services, increases... in theory people now have the money to pay for those goods and services right, we're all together so far in this speech we're told... but who does that money go to? the very people you attempted to take it from... they didn't lower profits to help your social goals, they simply raised prices and made you pay more, giving them more right back...

so who does this hurt?

the small business the liberals tell us we need more of... small business simply won't be able to absorb higher wages like this, and they will be the most likely victims of going out of business, just based on sheer scale and past examples... they won't be able to spread costs around and create as much efficiency as a large business can with labor costs... we've already seen it time and time again in small towns where small business gets eaten alive as a result of inability to react to the cost of goods they sell, what happens when we double their burden on labor now as well...

now some say they'll act the same way, and raise prices to counter the effect... but when we scale up the more expensive small business, and compare it to a large scale business, the further you push that scaling up, the less and less people will consume the goods or services from the small business... because you're slowly reaching the breaking point between what people are willing to pay more for, and encourage them to go to corporate stores instead because the increases just become so imbalanced at the breaking point... so who does raising minimum wage REALLY help...

the very people you hate, will profit more from your actions...

just something to think about... another unintended consequence...

P.S. a math example... the corporate burger place sells their burgers for $5 and with a 40% increase in costs, now charge $7 but the small mom-n-pop place sold their burgers for $6 and with a 40% increase in costs, now they charge $8.40 which means our gap of costs is increasing between the two... people will eventually say, I'd love to support a local business, but its just costing too much more... thats what happens when we scale costs... something that cost just a little more before, suddenly costs more and more and reaches that breaking point when people stop going over cost... and guess who that customer now goes to... the very evil corporations who you hate to begin with, making more profit off more people...

P.S.S. I should also add, the corporate store is more likely to adopt and implement automation, which means their burgers might not rise the 40% and might only go up say 20% while the small business charges 40% more... this is another way that corporations can absorb and spread costs that small businesses simply can not... so you might have a comparison of a $6 corporate burger or a $8.40 small business burger... you're likely to give your business to those evil corporations you hate so much...

P.S.S.S. this is why the goal should not be how to raise income, but to LOWER cost of living... thats the true way to win in this scenario... increasing wages only creates more losers, lowering cost of living, makes life better for ALL those at the bottom...

 

The corporation doesn't actually earn more because they are paying it out in higher wages.

Basically no matter what the wage is it will remain the same. If you pay someone one dollar an hour a loaf of bread may cost you 5 cents. If you pay them 100 an hour that loaf of bread may cost 20 dollars. Either way, the corporation is getting the same return on their investment.

 

liberals are against corporate greed, we are NOT against corporations

 

That's not really the argument though. They get the same return for every burger, but they will sell more burgers if the other ones are pricier.

 

Please explain what corporate greed is.

 

I think small businesses should be exempt.

 

This is "greed".

The definition illustrates why capitalism and corporations cannot go 'unregulated'.

Human nature is what it is.

 

`
LOL....doesn't know the definition of 'corporate greed'.

 

So if a company sells 10 cases of coke and makes a 10 dollar profit that is fine but if they sell 100 cases and make a 1000 dollar profit that would be greed?

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Do you?

Explain it to me.

 

The solutions will not always be set in stone; some of the proper actions will be proprietary.

And any reasonably astute and honest person living in this society today, can SEE or SENSE that too many things have been rigged AGAINST regular working people. Statistics generally support that as well.

 

Moving their production off shore to reduce operating costs while not reducing the price of the widget.

 

What is rigged against working people?

Be specific.

 

So a company that can make a toy for five dollars instead of ten dollars is being greedy? I thought the whole point of production was to create a product at the lowest possible price for them and sell it at maximum cost.

 

Before Obama turned common wisdom upside-down, small businesses hired the vast majority of workers in this country, approximately 70-80 percent. Now I'm sure it is much lower because of over-regulation and Obamacare. Small businesses have been hurt badly during Obama's administration. A manufacturing facility that employs less than 500 people is an example of a small business. Look it up.

Steve

 

but what if a millionaire owns a small business, shouldn't he pay his workers the same thing a millionaire CEO does?

what if donald trump owned a single local burger joint... would you exempt him? (I love giving examples to challenge peoples thoughts)

 

see this is why I think people need more math classes... the company keeps the same 5% margin... sales go from 10 billion, to 12 billion, as a result of increased costs of goods they sell to offset the increase in wages... whats 5% of 10 billion and whats 5% of 12 billion... so yes, they will make more... because they kept the same 5% margins they work off...

and like I explained in my example, as more and more small businesses fail because they are unable to keep up with the dramatic increase in labor costs, more people will end up shopping at the larger chains instead... so they will receive more customers and more money from those customers... this is how they will make even more money as more customers shop there...

this is all simple math, its not that complex of a notion...

 

If a worker makes a mistake does the company go out of business? Does the worker have the responsibility of ensuring people still have jobs?

Sorry but more responsibility and accountability deserves more pay.

 

so how does raising wages address corporate greed? when they offset those costs and pass them along to the consumer, while maintaining the same profit margins... you didn't solve their corporate greed at all, in fact as I cited, you ended up giving them MORE profits and MORE ceo rewards as the stock prices will increases which is how most of their benefits packages are awarded for doing...

another solution that doesn't solve the problem you just indicated this addresses?

 

Liberals don't like corporations, small businesses, or consumers. Forcing businesses to pay more than the service is worth harms all three so for liberals it's a win/win/win.

 

So when a baseball team pays millions for a star player who will win them championships is that corporate greed?

 

your response doesn't really address your previous statement... you said, small businesses should be exempt... why...

my example was, if donald trump owns a small burger joint, why should he be exempt, while lets say mcdonalds pays $15 an hour?

 

That was "giftedone" that said small businesses should be exempt.

Steve

 

That wasn't my comment.

As to your example however I would say this. Why would a company not take advantage of everything they can do to increase profits....isn't that why they formed the business in the first place?

It seems there isn't a problem with corporate greed but with the laws congress has passed.

Tell me, if you could receive 5000 in deductions on your tax return or 1000, which would you pick? If you pick 5000 does that mean you are guilty of corporate greed?

 

as someone else pointed out, giftedone was the person who made the comment I accused you of making, it seems you quoted my respond to him and I assumed it was you...

we're on the same page, I'm not the one calling corporations greedy for maximizing profits... I'm the one who started the thread and said corporations would be the ones who benefit the MOST from raising the minimum wage... and I demonstrated how and why that will happen, and how this is another "unintended consequence" of the liberals who meant well, but failed to solve the problem they objected to in the first place... which was corporate greed... this only HELPS "greedy" corporations...

 

I'm glad to hear that. Actually, the market is best at determining wages, but unfortunately the market is messed up by the Federal gov meddling. If a minimum wage is needed it should be states that make that determination, not the "one size fits all" Federal government.

One of the best things to accomplish higher wages is to reduce immigration, both legal and illegal. When immigrants compete for jobs, the wages remain low, as they have for more than 10 years. One problem resolution can solve many issues. And after the economy get back on track again, this issue will disappear no matter what, until the next recession and dems try to brainwash voters.

Steve