- Sep 19, 2011
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that is just one part of it; the other part is the upward pressure on wages while higher paid labor pays more in taxes and creates more in demand. you may be missing the point about labor being able to afford better products at that new price point.Unemployment is natural under capitalism. It is why the left has a solution; unemployment compensation for capitalism's natural rate of unemployment. A fifteen dollar an hour minimum wage and unemployment compensation for being unemployed by capitalism's natural rate of unemployed at fourteen dollars an hour equivalent will solve that simple form of poverty; and, higher paid labor pays more in taxes and create more in demand.The left wants to pioneer, raising the minimum wage to raise tax revenue, so the poor can help with taxes.The only problem with raising taxes on the wealthy is that they move overseas to "tax havens" and/or put money in Swiss bank accounts or some other tax avoidance scheme. I'm not sure how to avoid the "only little people pay taxes" rationale' of the wealthy.
I can see a $15 minimum wage for heads of households. The problem with the $15 min is that jobs are lost, so kids can't find work.
AGAIN... how many people would GAIN from $15. wage????? Less than 3 million!
Q) How many people do you think work at minimum wage?
A) In 2014, about 1.3 million U.S. workers age 16 and over earned exactly the prevailing federal minimum wage of $7.25 per hour. Another 1.7 million had wages below the federal minimum. Together these workers make up 4 percent of all hourly paid workers. What are the characteristics of minimum wage workers? - UC Davis Center for Poverty Research
So let's raise ALL these 3 million people to $15.00/hour.
DO you think that solution will help the GDP????? Well guess what dummies!
The actual contribution would be 3 million times $7.75 X 2,080 hours and guess what a GREAT big difference to the GDP that makes??? 2/10ths of 1 percent!!!
$48.3 billion divided by $18.57 trillion equals 0.002%...WOW... what a gigantic difference!!!
AGAIN... how much taxes will be paid on $48.3 billion? Well for sure the payroll taxes of 12.4% or about $ 6 billion... yea that well create demand!
NO you are just not thinking about the reality.
And the reality is I'm not against $15.00 wage in New York. That's there prerogative for living in a standard of living that's over 140% more than the rest of the country.
BUT why force a fast food place in Mississippi to pay $15.00 when the standard of living is 84% of the rest of the country?
It is just an example of how ONE size doesn't fit all!
What WILL happen is this:
Fast Food Robots, Kiosks, and AI Use Cases from 6 Restaurant Chain Giants
Fast Food Robots, Kiosks, and AI Use Cases from 6 Restaurant Chain Giants -
See the problem is YOU don't know what it costs to run a fast food place.
LOOK at these financial ratios and tell me how the fast food place will stay in business IF their labor costs double?
AGAIN salaries,wages, benefits take up 30.8% . Raise the salaries/wages to $15.00 will effectively increase that to nearly 50%!
NOW look at the bottom line... Income before taxes is 4.4%... WHAT will it be if salaries/wages increase 50%?
You've wiped out income before taxes... you've a loss!
It's not realistic when you make a one size fits all solution.