Applebee's Owner: The Truth About $15 Minimum Wage

[Econ4Every1]

Who drives wages down? The only real examples I know of today is the big company's like apple, they are in cahoots with others to keep IT wages low..living in South Carolina now I know no manufacturing company starting off paying less then $4 over minimum wage, even McDonald's here is starting people off $2 bucks over minimum wage.

I didn't mean to suggest that there is some nefarious plan by business owners to drive down wages. The fact is, any owner is going to pay as little as they can. That is their fiduciary responsibility to their company. This is the paradox I was speaking of.

It's not necessarily that there is an active conspiracy to drive wages down, but a lack of support to increase wages.

The reality is that spending=income. The less money spent the less income is earned and so on....

As a nation we can't save our way to prosperity, it's simply impossible.

As a nation we can't spend our way to prosperity, it's simply impossible.

We'll get there. One thing at a time...

 

[rightwinger]

American workers would be so much better off if they made less money.

"Prosperity Through Lower Wages!"

Are you even listening, higher minimum =les jobs


Sent from my iPhone using Tapatalk

We have heard the same threat every time minimum wage has been raised over the last 70 years.........If you raise wages...you will lose jobs

In each case, the market has adjusted to increasing minimum wage

Lets face it, the minimum wage has not been raised in eight years. How many times has Applebees raised their prices in the last eight years?

 

[Econ4Every1]

American workers would be so much better off if they made less money.

"Prosperity Through Lower Wages!"

Are you even listening, higher minimum =les jobs


Sent from my iPhone using Tapatalk

We have heard the same threat every time minimum wage has been raised over the last 70 years.........If you raise wages...you will lose jobs

In each case, the market has adjusted to increasing minimum wage

Lets face it, the minimum wage has not been raised in eight years. How many times has Applebees raised their prices in the last eight years?

The irony and a bit of a paradox is that paying less can cause prices to rise.

People in the bottom 80% or so are increasing their borrowing.

This chart shows that government debt, as a percentage of GDP is about the same as it was in the 1940's, but look at the private debt. As each household increases, its debt, it also increases its debt service as a percentage of income. More money spent on debt servers means less money spent supporting the economy via the purchases of goods and services.

 

[Toddsterpatriot]

American workers would be so much better off if they made less money.

"Prosperity Through Lower Wages!"

Are you even listening, higher minimum =les jobs


Sent from my iPhone using Tapatalk

We have heard the same threat every time minimum wage has been raised over the last 70 years.........If you raise wages...you will lose jobs

In each case, the market has adjusted to increasing minimum wage

Lets face it, the minimum wage has not been raised in eight years. How many times has Applebees raised their prices in the last eight years?

The irony and a bit of a paradox is that paying less can cause prices to rise.

People in the bottom 80% or so are increasing their borrowing.

This chart shows that government debt, as a percentage of GDP is about the same as it was in the 1940's, but look at the private debt. As each household increases, its debt, it also increases its debt service as a percentage of income. More money spent on debt servers means less money spent supporting the economy via the purchases of goods and services.

More money spent on debt servers means less money spent supporting the economy

The money lenders earn isn't spent? Doesn't support the economy?

 

[Econ4Every1]

American workers would be so much better off if they made less money.

"Prosperity Through Lower Wages!"

Are you even listening, higher minimum =les jobs


Sent from my iPhone using Tapatalk

We have heard the same threat every time minimum wage has been raised over the last 70 years.........If you raise wages...you will lose jobs

In each case, the market has adjusted to increasing minimum wage

Lets face it, the minimum wage has not been raised in eight years. How many times has Applebees raised their prices in the last eight years?

The irony and a bit of a paradox is that paying less can cause prices to rise.

People in the bottom 80% or so are increasing their borrowing.

This chart shows that government debt, as a percentage of GDP is about the same as it was in the 1940's, but look at the private debt. As each household increases, its debt, it also increases its debt service as a percentage of income. More money spent on debt servers means less money spent supporting the economy via the purchases of goods and services.

More money spent on debt servers means less money spent supporting the economy

The money lenders earn isn't spent? Doesn't support the economy?

If you're correct and money earned by lenders finds its way back into the hands of the average person, then why is private debt rising?

Why is 24% of productive capacity unused?

Because there are two different economies. One on Main St. and one on Wall St. Money is increasingly being pulled to the top.

Here we see the wealth in the bottom 80% in 1980 was 18.7%

Recently we see it's fallen to 11%

So, while the money earned in banking and Wall St may be spent, much of it is put back into the financial economy to earn money on money. Much of those earnings are flowing up to the top 20% at a rate that is greater than the income earned providing goods and services to those in the top 20% relative to the money held at the top.

 

[Toddsterpatriot]

American workers would be so much better off if they made less money.

"Prosperity Through Lower Wages!"

Are you even listening, higher minimum =les jobs


Sent from my iPhone using Tapatalk

We have heard the same threat every time minimum wage has been raised over the last 70 years.........If you raise wages...you will lose jobs

In each case, the market has adjusted to increasing minimum wage

Lets face it, the minimum wage has not been raised in eight years. How many times has Applebees raised their prices in the last eight years?

The irony and a bit of a paradox is that paying less can cause prices to rise.

People in the bottom 80% or so are increasing their borrowing.

This chart shows that government debt, as a percentage of GDP is about the same as it was in the 1940's, but look at the private debt. As each household increases, its debt, it also increases its debt service as a percentage of income. More money spent on debt servers means less money spent supporting the economy via the purchases of goods and services.

More money spent on debt servers means less money spent supporting the economy

The money lenders earn isn't spent? Doesn't support the economy?

If you're correct and money earned by lenders finds its way back into the hands of the average person, then why is private debt rising?

Why is 24% of productive capacity unused?

Because there are two different economies. One on Main St. and one on Wall St. Money is increasingly being pulled to the top.

Here we see the wealth in the bottom 80% in 1980 was 18.7%

Recently we see it's fallen to 11%

So, while the money earned in banking and Wall St may be spent, much of it is put back into the financial economy to earn money on money. Much of those earnings are flowing up to the top 20% at a rate that is greater than the income earned providing goods and services to those in the top 20% relative to the money held at the top.

If you're correct and money earned by lenders finds its way back into the hands of the average person, then why is private debt rising?

Who said it finds it's way into the hands of the average person who is borrowing?

Why is 24% of productive capacity unused?

Might have something to do with ridiculous regulations.

much of it is put back into the financial economy to earn money on money.

Frightening!!
LOL!

 

[Econ4Every1]

Are you even listening, higher minimum =les jobs


Sent from my iPhone using Tapatalk

We have heard the same threat every time minimum wage has been raised over the last 70 years.........If you raise wages...you will lose jobs

In each case, the market has adjusted to increasing minimum wage

Lets face it, the minimum wage has not been raised in eight years. How many times has Applebees raised their prices in the last eight years?

The irony and a bit of a paradox is that paying less can cause prices to rise.

People in the bottom 80% or so are increasing their borrowing.

This chart shows that government debt, as a percentage of GDP is about the same as it was in the 1940's, but look at the private debt. As each household increases, its debt, it also increases its debt service as a percentage of income. More money spent on debt servers means less money spent supporting the economy via the purchases of goods and services.

More money spent on debt servers means less money spent supporting the economy

The money lenders earn isn't spent? Doesn't support the economy?

If you're correct and money earned by lenders finds its way back into the hands of the average person, then why is private debt rising?

Why is 24% of productive capacity unused?

Because there are two different economies. One on Main St. and one on Wall St. Money is increasingly being pulled to the top.

Here we see the wealth in the bottom 80% in 1980 was 18.7%

Recently we see it's fallen to 11%

So, while the money earned in banking and Wall St may be spent, much of it is put back into the financial economy to earn money on money. Much of those earnings are flowing up to the top 20% at a rate that is greater than the income earned providing goods and services to those in the top 20% relative to the money held at the top.

You keep ignoring the stats that show movement of wealth from the bottom 80% to the top 20%

Might have something to do with ridiculous regulations.

LOL..That's not an argument. That's right wing propaganda. The fact is we've had periods of greater economic success with those same regulations.

 

[OnePercenter]

Matt recently brought you up to date on how liberals’ minimum wage demands have done severe damage to Seattle's and New York’s businesses. He highlighted a New York Post report revealing that, in the wake of the increased rate to $15 an hour, New York lost a staggering 1,000 restaurants.

Applebee's was one of the businesses that has been especially hard pressed by the minimum wage hike. Zane Tankel, the CEO of Applebee’s New York franchise, explained that his restaurants were forced to fire at least 1,000 employees so far thanks to the liberal policy. He shared the unfortunate news with Fox Business's Stuart Varney on Monday.

Instead of typical servers, the CEO explained that they will soon be replaced by concierges, who merely check on customers from time to time to make them feel "warm and comfortable."

"The model now that we're heading towards where we had one server for three or four tables, we're moving towards one server for ten tables, eliminating about two-thirds of our labor ultimately. But it's because of Cuomo, De Blasio, the liberal agenda."

If Applebee's completely follows through with its concierge service, nearly 2,000 employees will be heading for the exit, Newsbusters explains.

Tankel discussed this same issue with Varney in January, back when he had *only* fired 500 employees.

“We can’t raise prices anymore,” he said at the time, rather candidly, so they had to take drastic measures.

The lost workers, he explained, could be replaced with tablets that are placed on customers’ tables.

"Increasing minimum wage is technology's best friend," Tankel concluded.

One server for ten tables has been an industry norm for decades. The story is a lie.

https://www.quora.com/What-is-the-ideal-waiter-to-table-ratio-in-a-restaurant

I find this response utterly baffling.

"Prices have gone up now we're just going to have to fire people and provide terrible service"

This is what innovation is all about. Wages are just one of hundreds perhaps even thousands of costs that go into running a business. Complaining that when one of those costs increases means that you can't run your business effectively?

Again, this is just a bias toward business and places the burden on workers.

This, of course, is why the distribution of wealth and income matters.

Why would you find employers screwing their employees to increase profit 'baffling?'

 

[Toddsterpatriot]

We have heard the same threat every time minimum wage has been raised over the last 70 years.........If you raise wages...you will lose jobs

In each case, the market has adjusted to increasing minimum wage

Lets face it, the minimum wage has not been raised in eight years. How many times has Applebees raised their prices in the last eight years?

The irony and a bit of a paradox is that paying less can cause prices to rise.

People in the bottom 80% or so are increasing their borrowing.

This chart shows that government debt, as a percentage of GDP is about the same as it was in the 1940's, but look at the private debt. As each household increases, its debt, it also increases its debt service as a percentage of income. More money spent on debt servers means less money spent supporting the economy via the purchases of goods and services.

More money spent on debt servers means less money spent supporting the economy

The money lenders earn isn't spent? Doesn't support the economy?

If you're correct and money earned by lenders finds its way back into the hands of the average person, then why is private debt rising?

Why is 24% of productive capacity unused?

Because there are two different economies. One on Main St. and one on Wall St. Money is increasingly being pulled to the top.

Here we see the wealth in the bottom 80% in 1980 was 18.7%

Recently we see it's fallen to 11%

So, while the money earned in banking and Wall St may be spent, much of it is put back into the financial economy to earn money on money. Much of those earnings are flowing up to the top 20% at a rate that is greater than the income earned providing goods and services to those in the top 20% relative to the money held at the top.

You keep ignoring the stats that show movement of wealth from the bottom 80% to the top 20%

Might have something to do with ridiculous regulations.

LOL..That's not an argument. That's right wing propaganda. The fact is we've had periods of greater economic success with those same regulations.

You keep ignoring the stats that show movement of wealth from the bottom 80% to the top 20%

So? Did they have something to do with the idea that money paid as interest magically leaves the economy?

LOL..That's not an argument.

We don't have ridiculous amounts of regulation weighing down our economy?

 

[OnePercenter]

You've established why most businesses fail. Beyond that, not much.

Actually, I'm attempting to uncover the hidden bias towards business owners, at least by some. I've also pointed out that increased wages are linked to an increased capacity to consume, something that pro-business think-tanks don't take into account.

But don't think that I'm anti-business, it just happens to be what this post was about. I'm simply challenging the prevailing wisdom that this thread represents.

Personally, I don't like the minimum wage as a tool. It's like pushing a pin a with a sledgehammer. Its effectiveness (minimum wage) is limited because it does not take market conditions and cost of living into account, at least a federal minimum wage.

So I freely concede that a $15 minimum wage will have a much larger impact in Biloxi than it will in Burbank.

The poverty level of the two cities is within 2% points, so it will.

 

[OnePercenter]

American workers would be so much better off if they made less money.

"Prosperity Through Lower Wages!"

American workers would be so much better off if they made less money.

Raise the minimum wage too high and they will make less money.

Why?

Because they'll be unemployed.

Because employers want to keep their record profits?

 

[Econ4Every1]

Matt recently brought you up to date on how liberals’ minimum wage demands have done severe damage to Seattle's and New York’s businesses. He highlighted a New York Post report revealing that, in the wake of the increased rate to $15 an hour, New York lost a staggering 1,000 restaurants.

Applebee's was one of the businesses that has been especially hard pressed by the minimum wage hike. Zane Tankel, the CEO of Applebee’s New York franchise, explained that his restaurants were forced to fire at least 1,000 employees so far thanks to the liberal policy. He shared the unfortunate news with Fox Business's Stuart Varney on Monday.

Instead of typical servers, the CEO explained that they will soon be replaced by concierges, who merely check on customers from time to time to make them feel "warm and comfortable."

"The model now that we're heading towards where we had one server for three or four tables, we're moving towards one server for ten tables, eliminating about two-thirds of our labor ultimately. But it's because of Cuomo, De Blasio, the liberal agenda."

If Applebee's completely follows through with its concierge service, nearly 2,000 employees will be heading for the exit, Newsbusters explains.

Tankel discussed this same issue with Varney in January, back when he had *only* fired 500 employees.

“We can’t raise prices anymore,” he said at the time, rather candidly, so they had to take drastic measures.

The lost workers, he explained, could be replaced with tablets that are placed on customers’ tables.

"Increasing minimum wage is technology's best friend," Tankel concluded.

One server for ten tables has been an industry norm for decades. The story is a lie.

https://www.quora.com/What-is-the-ideal-waiter-to-table-ratio-in-a-restaurant

I find this response utterly baffling.

"Prices have gone up now we're just going to have to fire people and provide terrible service"

This is what innovation is all about. Wages are just one of hundreds perhaps even thousands of costs that go into running a business. Complaining that when one of those costs increases means that you can't run your business effectively?

Again, this is just a bias toward business and places the burden on workers.

This, of course, is why the distribution of wealth and income matters.

Why would you find employers screwing their employees to increase profit 'baffling?'

Where did I say that?

I'm baffled at how someone can say that because prices have gone up waiters are going to have to serve more people with (presumably) leads to less service for customers.

Until someone else figures out how to lower cost somewhere else in the business and can still provide adequate staff to maintain higher levels of service.

 

[OnePercenter]

Apologies, still lerning how to use this forum...My previous comments are in bold.

-E4E1

Wages enable workers to purchase business output. Decreasing wages decreases the consumption capacity of the majority of potential customers.

So every employer should pay their workers more than they produce.....for the economy!! LOL!

Again, costs aren't fixed.

Since 1980 here's what we've seen:

Increasing income, across the board.

Again, costs aren't fixed and nominal numbers are useless when looking at different time periods.

Not because it's "unfair", but because the top quintile (in blue - roughly 32 million families) regardless of its increasing income, cannot purchase enough to drive necessary demand in the businesses owned by the same top 20%.

Of course, because savings are bad for the economy. What a load of crap.

Yes, Keynes was right. It's called the Paradox of Thrift.

Not to mention the fact that societal costs increase as the government is left to help those that cannot find work that pays enough to afford healthcare, food, shelter ect....

It's true, booting illegal aliens would increase jobs and wages for our low skilled workers.

Yes and at the same time lowering national productivity which is what gives the dollar (most of) its value (see Japan)

By pushing wages incrementally higher we expect to observe an overall increase overall demand

Increasing wages leaves less money available for other business purchases.
Lowering overall demand.

True or false Spending=Income?

The problem is that marginal wages have been allowed to decrease over time.

The problem is your claim is false.

Evidence?

Again, I could turn that around and say that failure to increase wages is the best way to decrease demand in the economy overall.

Driving employers out of business isn't good for employment, wages or demand.

Driving wages down isn't good for demand either.

There is an equilibrium point between high wages and low costs of production. Either extreme is bad.

Again, costs aren't fixed.

Which costs are those?

 

[Econ4Every1]

You've established why most businesses fail. Beyond that, not much.

Actually, I'm attempting to uncover the hidden bias towards business owners, at least by some. I've also pointed out that increased wages are linked to an increased capacity to consume, something that pro-business think-tanks don't take into account.

But don't think that I'm anti-business, it just happens to be what this post was about. I'm simply challenging the prevailing wisdom that this thread represents.

Personally, I don't like the minimum wage as a tool. It's like pushing a pin a with a sledgehammer. Its effectiveness (minimum wage) is limited because it does not take market conditions and cost of living into account, at least a federal minimum wage.

So I freely concede that a $15 minimum wage will have a much larger impact in Biloxi than it will in Burbank.

The poverty level of the two cities is within 2% points, so it will.

Whatever....Pick any two cities you want. How about Martinsburg West VA and McLean Va?

 

[Toddsterpatriot]

American workers would be so much better off if they made less money.

"Prosperity Through Lower Wages!"

American workers would be so much better off if they made less money.

Raise the minimum wage too high and they will make less money.

Why?

Because they'll be unemployed.

Because employers want to keep their record profits?

Profit is theft, eh comrade?

 

[OnePercenter]

You've established why most businesses fail. Beyond that, not much.

Actually, I'm attempting to uncover the hidden bias towards business owners, at least by some. I've also pointed out that increased wages are linked to an increased capacity to consume, something that pro-business think-tanks don't take into account.

But don't think that I'm anti-business, it just happens to be what this post was about. I'm simply challenging the prevailing wisdom that this thread represents.

Personally, I don't like the minimum wage as a tool. It's like pushing a pin a with a sledgehammer. Its effectiveness (minimum wage) is limited because it does not take market conditions and cost of living into account, at least a federal minimum wage.

So I freely concede that a $15 minimum wage will have a much larger impact in Biloxi than it will in Burbank.

The poverty level of the two cities is within 2% points, so it will.

Whatever....Pick any two cities you want. How about Martinsburg West VA and McLean Va?

You agree that a $15.00 minimum wage will help everywhere in the US.

 

[OnePercenter]

American workers would be so much better off if they made less money.

"Prosperity Through Lower Wages!"

American workers would be so much better off if they made less money.

Raise the minimum wage too high and they will make less money.

Why?

Because they'll be unemployed.

Because employers want to keep their record profits?

Profit is theft, eh comrade?

Screwing your employees pay to make record profits is morally reprehensible. So we need regulations to control the actions of the bad guys.

 

[Toddsterpatriot]

American workers would be so much better off if they made less money.

Raise the minimum wage too high and they will make less money.

Why?

Because they'll be unemployed.

Because employers want to keep their record profits?

Profit is theft, eh comrade?

Screwing your employees pay to make record profits is morally reprehensible. So we need regulations to control the actions of the bad guys.

Yes, low/no skilled workers must be paid enough to buy a big house in the 'burbs.

 

[TheGreatGatsby]

Matt recently brought you up to date on how liberals’ minimum wage demands have done severe damage to Seattle's and New York’s businesses. He highlighted a New York Post report revealing that, in the wake of the increased rate to $15 an hour, New York lost a staggering 1,000 restaurants.

Applebee's was one of the businesses that has been especially hard pressed by the minimum wage hike. Zane Tankel, the CEO of Applebee’s New York franchise, explained that his restaurants were forced to fire at least 1,000 employees so far thanks to the liberal policy. He shared the unfortunate news with Fox Business's Stuart Varney on Monday.

Instead of typical servers, the CEO explained that they will soon be replaced by concierges, who merely check on customers from time to time to make them feel "warm and comfortable."

"The model now that we're heading towards where we had one server for three or four tables, we're moving towards one server for ten tables, eliminating about two-thirds of our labor ultimately. But it's because of Cuomo, De Blasio, the liberal agenda."

If Applebee's completely follows through with its concierge service, nearly 2,000 employees will be heading for the exit, Newsbusters explains.

Tankel discussed this same issue with Varney in January, back when he had *only* fired 500 employees.

“We can’t raise prices anymore,” he said at the time, rather candidly, so they had to take drastic measures.

The lost workers, he explained, could be replaced with tablets that are placed on customers’ tables.

"Increasing minimum wage is technology's best friend," Tankel concluded.

Sad.

 

[westwall]

American workers would be so much better off if they made less money.

"Prosperity Through Lower Wages!"

Are you even listening, higher minimum =les jobs


Sent from my iPhone using Tapatalk

We have heard the same threat every time minimum wage has been raised over the last 70 years.........If you raise wages...you will lose jobs

In each case, the market has adjusted to increasing minimum wage

Lets face it, the minimum wage has not been raised in eight years. How many times has Applebees raised their prices in the last eight years?

In my area they have cut back servers, and have begun to use those table top order pads. The MW has gone up once in 8 years, but Applebees hasn't raised prices except for a couple of items.