Minimum Wage Increase: They Never Talks About the SALES

[Flipper]

It can be made by using slaves if your society is immoral enough to accept that institution.

Some of the greed freaks in this thread are quite immoral enough for that. If they had an ounce of decency, they wouldn't oppose the MW raise. If they had an ounce of brains, they'd know the MW raise is GOOD for business, to increase sales. Nothing more destructive to sales than having a lot of MW workers in your community.

Decency is something you know nothing about son.

 

[Toddsterpatriot]

Minimum Wage Increase: They Never Talks About the SALES

OK, dum dum MW raise opponents! Here's your chance. You may now talk about SALES$$$$ (and the nice boost of them you get from the MW raise) TALK!!

A company has $1,000,000 in sales, $500,000 COGS and $300,000 in wage expenses.
Increase their wage expense by $100,000 and their sales by $100,000.
How does their new profit compare to their old profit?

 

[Flipper]

If you read the thread, instead of being just jumping in here mindless, you'd know the correct situation, instead of the assclown comment you just made. Conservatives support raising the MW 54% to 44%. The link has been posted 10 times here already.

Link schmink, NO actual Conservative supports the minimum wage. Supporting it proves these people are NOT Conservatives.

Listen dumbass. I owned and managed a business for 12 years. I paid my people $350/hour (in 2015 dollars), and they still only got 15% of their sales. And my biggest problem was all the people who kept telling me "Sorry, I can't afford it" That inability of them to pay, was, by far, my worst problem. And it was because of screwballs like you who supported keeping the MW down, and all the business owners out there who were paying these guys MW, thereby limiting their capablity to buy the things we other business owners were trying to sell.

You guys aren't conservatives. You're just a bunch of low-life greed-freaks, and compared to my REAL conservatism you'd look like Nancy Pelosi.

Golly son.....you may well be the Last True Conservative, should we all just bow at your feet and worship your greatness?
You aren't a Conservative any more than Obama is, you are a poseur of the worst kind.

It's cute that you worship that article as your Bible concerning the MW, your agreement with it shows that you haveno experience whatsoever in running a business.....in short you are a run of the mill liar.

Son.

 

[Anathema]

[A company has $1,000,000 in sales, $500,000 COGS and $300,000 in wage expenses.
Increase their wage expense by $100,000 and their sales by $100,000.
How does their new profit compare to their old profit?

It has stayed the same in terms of total dollars but has fallen from 20% of sales to 18% of sales.

 

[JoeMoma]

Minimum Wage Increase: They Never Talks About the SALES

OK, dum dum MW raise opponents! Here's your chance. You may now talk about SALES$$$$ (and the nice boost of them you get from the MW raise) TALK!!

A company has $1,000,000 in sales, $500,000 COGS and $300,000 in wage expenses.
Increase their wage expense by $100,000 and their sales by $100,000.
How does their new profit compare to their old profit?

Profit is only a percentage of sales, right? Perhaps I need to spend more time at the Protectionist school of Econ!

 

[hazlnut]

Where is the chart that shows employers the precise number of employees they should hire in order to get the most income/profit?

It's called business school, dopey.

No one wants to eat at an understaffed restaurant.

 

[Anathema]

It's called business school, dopey.

No one wants to eat at an understaffed restaurant.

Actually McDonald's used to (can't say if they still do) have a policy of basing staffing levels on a percentage of hourly sales. That's why they always seemed to be short-staffed...... Two bad hours of sales and they're sending employees home.

 

[Toddsterpatriot]

Where is the chart that shows employers the precise number of employees they should hire in order to get the most income/profit?

It's called business school, dopey.

No one wants to eat at an understaffed restaurant.

No one wants to eat at an understaffed restaurant.

Or one that closed their doors because they were unprofitable.

 

[Toddsterpatriot]

[A company has $1,000,000 in sales, $500,000 COGS and $300,000 in wage expenses.
Increase their wage expense by $100,000 and their sales by $100,000.
How does their new profit compare to their old profit?

It has stayed the same in terms of total dollars but has fallen from 20% of sales to 18% of sales.

Actually, profit dropped from $200,000 to $150,000.

 

[JoeMoma]

[A company has $1,000,000 in sales, $500,000 COGS and $300,000 in wage expenses.
Increase their wage expense by $100,000 and their sales by $100,000.
How does their new profit compare to their old profit?

It has stayed the same in terms of total dollars but has fallen from 20% of sales to 18% of sales.

Actually, profit dropped from $200,000 to $150,000.

Because 1/2 of the increase in sales goes to pay for the increase in the number of cogs sold. Those cogs aren't free.

 

[JoeMoma]

[A company has $1,000,000 in sales, $500,000 COGS and $300,000 in wage expenses.
Increase their wage expense by $100,000 and their sales by $100,000.
How does their new profit compare to their old profit?

It has stayed the same in terms of total dollars but has fallen from 20% of sales to 18% of sales.

Actually, profit dropped from $200,000 to $150,000.

Protectionist has to know what he is talking about, having run a business paying sales employees $350/hour (in 2015 dollars) and having taught college micro economics classes. So that means that sales would have to be at least double the increase in labor cost so that the company will break even. There must be a hell of an increase in consumer spending when the minimum wage is increased.

 

[EdwardBaiamonte]

It will drive it all the way to the bottom of the ocean.

When McDonalds raises wages, guess what, the price of some items goes up. Which items, the ones that sell the most.

And when minimum wage is increased, those of us who have skills, will be getting nice bumps in our paychecks as well, why? because we have skills.

When you go to the store and your groceries for the week cost you 100 bucks and you bring home 3 bags of stuff, that's bad, and that is pretty much what we have now. When you go to the store and your groceries for the week cost you 150 bucks and you bring home 3 bags of stuff, that's bad also.

Everything will go up, no one will have anymore disposable income than they have now, but there will be tricks out there that people don't notice.

Your laundry detergent will not increase in price, the 20 lb. box will just now be a 17 lb. box, for the same price. The box will remain the same size as well. So most people won't notice, at least not at first.

I mean , what's the difference in a 12 oz. can of soda and an 11 oz.? It's just a swallow, or basically a full can if you buy a 12 pack. Same with beer, but at least beer wont try to hide it, they will just keep it 12 oz. and raise the price.

So, I am looking forward to getting a raise, I can't wait till im making .75 cents a mile.

FALSE! Already refuted by item # 1 in the OP.

Then please answer this question.

Why does a car no longer cost 4000 dollars, like it did in the 70's?

And after I read your answer, I will explain things to you.

The minimum wage is just one more labor law to keep businesses from exploiting labor, like the 40 hour week, the 8 hour day, workplace safety laws, anti-child labor laws, etc., etc.

If you want labor exploited, you don't like the minimum wage law.

of course a liberal will be a 100% stupid libcommie who wants a 1000 interventions in the free market because he lacks the IQ to understand that capitalism forces a business to provide the best jobs and products possible just to survive.

 

[protectionist]

Protectionist has to know what he is talking about, having run a business paying sales employees $350/hour (in 2015 dollars) and having taught college micro economics classes. So that means that sales would have to be at least double the increase in labor cost so that the company will break even. There must be a hell of an increase in consumer spending when the minimum wage is increased.

Of course there's a hell of an increase in consumer spending when the minimum wage is increased. Imagine yourself being saddled down with a 40 hour a week job paying $7.25/hour. You'd be lucky just to cover your necessities. Now all of a sudden you're getting $15/hour for those 40 hours. You got a long list of things to buy, and the stores brace themselves for a customer tsunami.

 

[Flipper]

Protectionist has to know what he is talking about, having run a business paying sales employees $350/hour (in 2015 dollars) and having taught college micro economics classes. So that means that sales would have to be at least double the increase in labor cost so that the company will break even. There must be a hell of an increase in consumer spending when the minimum wage is increased.

Of course there's a hell of an increase in consumer spending when the minimum wage is increased. Imagine yourself being saddled down with a 40 hour a week job paying $7.25/hour. You'd be lucky just to cover your necessities. Now all of a sudden you're getting $15/hour for those 40 hours. You got a long list of things to buy, and the stores brace themselves for a customer tsunami.

Horse shit son.

The fact that you think they'll be financially stable at 15 an hour reveals your lack of well.....any education at all.

Do try and leave my mother out of any cogent response you may wish to make

 

[protectionist]

of course a liberal will be a 100% stupid libcommie who wants a 1000 interventions in the free market because he lacks the IQ to understand that capitalism forces a business to provide the best jobs and products possible just to survive.

Liberals aren't the only ones who appreciate SMART business regulation. If Vioxx had not been taken off the market, people would still be dying because of it. If Thalidomide was still being sold, kids would still be being born with arms or legs. If building construction materials weren't being carefully controlled we'd have people being killed by buildings collapsing on top of them as happened a few years ago in Turkey, where codes are lax.

7-story building collapses in Turkey - Yahoo News

Embedded media from this media site is no longer available

 

[protectionist]

Not to minimize the importance of this thread and its topic, but being that this is still MEMORIAL DAY, I'm having to put in a plug for my Memorial Day thread where we all ought to be for at least some time today.

Nothing is More Important This Week Than Memorial Day US Message Board - Political Discussion Forum

 

[Publius1787]

Just now, I saw another report about the topic of minimum wage increase. This one was on CNN, hosted by Julie Banderas. She was talking to Scott Gamm, of HelpSaveMyDollars.com, a financial website focused on helping consumers save and learn about money. They were talking about the recent 14-1 vote by the city of Los Angeles to raise the minimum wage to $15 by 2020.

Scott might be well versed on various aspects pertaining to consumer finances but, on the minimum wage raise, he is waaay off the mark. He said three things about the minimum wage raise topic. And he was WRONG on all three. Gamm merely recited the 3 most commonly heard (and programmed) descriptions about minimum wage raises.

1. He said it would cause jobs to be lost. FALSE! Employers function with a number of employees that bring them the most income/profit. They CANNOT reduce staff. Any more or less employees results in SALES and income reduction. Layoffs result in losses, not gains.

2. He (and Banderas too) said prices would be raised (or fees created) to compensate for the wage losses, and these losses would just be "passed on" to the customers. More FALSE! scare talk. Businesses CANNOT raise prices because they are already fixed at a market price, related to maximization of sales/income. Any change in price (up or down) results in reduction of SALES and income.

3. He said businesses will move away from LA. FALSE! (in most cases). Does Gamm think that closing down a business and moving to another location can be done scott (no pun intended) free ? Depending on the business, moving costs can vary from just barely economical, to completely UNeconomical, and the latter is much more often the case. Imagine a machine shop with over 100 large production machines, having to pack then all up and move miles away. Some businesses could do it. Not many.

So here's the real crux of all this. As in 1000 other media reports I've seen on minimum wage increases, the most important aspect of this is NEVER MENTIONED. Not a word. That is the increase in DISPOSABLE INCOME resulting in INCREASES SALES$$$. All businesses get this, and generally it far outweighs labor increases, since the number of wage raised consumers (not just those at the minimum wage) by far outnumbers any one employer's workers who are getting wage increases.

Then there's also the fact that many business, while receiving this big SALES boost, do NOT have any wage loss at all. These are businesses who are mom & pop and have no employees, those whose workers are all working just on sales commission (car lots, furniture, real estate, insurance, etc), and third, those with skilled workers (ex. machine shops) whose workers all already get well over $15 hour, or whatever the MW would be raised to.

I think back to when I owned a business. I paid my commission salespeople $350/hour (in 2015 dollars), and they still were only receiving 15% of the sale. In all, I made fine profits and expanded the business. Biggest downer ? All the people who called in and said > "Sorry. I can't afford it." Of course they can't. Not one somebody out there is paying them a low minimum wage. To be successful in business, you have a lot fo things to do. But you can't do anything, if the public around you doesn't have money in their pockets to buy what you're trying to sell.

This is why Conservatives who support raising the MW nationwide, outnumber Conservatives who don't, 54% to 44%.

I love liberal economic thinking. I call it stage one thinking. More money = more purchases and more purchases =more money. Isn't is obvious you haven't thought far enough into this? With scarcity in mind, what would happen to normal and inferior goods? What of those businesses? What of those jobs that already pay what the proposed new minimum would pay? How will those workers react and what will they do? What of imports and exports? Pull on that string for a bit before you come to such elementary conclusions. We do not have a ceteris paribus economy. The reason sales aren't talked about is because that's where the most damning arguments against a higher minimum wage. Especially a "living wage."

 

[Flipper]

Just now, I saw another report about the topic of minimum wage increase. This one was on CNN, hosted by Julie Banderas. She was talking to Scott Gamm, of HelpSaveMyDollars.com, a financial website focused on helping consumers save and learn about money. They were talking about the recent 14-1 vote by the city of Los Angeles to raise the minimum wage to $15 by 2020.

Scott might be well versed on various aspects pertaining to consumer finances but, on the minimum wage raise, he is waaay off the mark. He said three things about the minimum wage raise topic. And he was WRONG on all three. Gamm merely recited the 3 most commonly heard (and programmed) descriptions about minimum wage raises.

1. He said it would cause jobs to be lost. FALSE! Employers function with a number of employees that bring them the most income/profit. They CANNOT reduce staff. Any more or less employees results in SALES and income reduction. Layoffs result in losses, not gains.

2. He (and Banderas too) said prices would be raised (or fees created) to compensate for the wage losses, and these losses would just be "passed on" to the customers. More FALSE! scare talk. Businesses CANNOT raise prices because they are already fixed at a market price, related to maximization of sales/income. Any change in price (up or down) results in reduction of SALES and income.

3. He said businesses will move away from LA. FALSE! (in most cases). Does Gamm think that closing down a business and moving to another location can be done scott (no pun intended) free ? Depending on the business, moving costs can vary from just barely economical, to completely UNeconomical, and the latter is much more often the case. Imagine a machine shop with over 100 large production machines, having to pack then all up and move miles away. Some businesses could do it. Not many.

So here's the real crux of all this. As in 1000 other media reports I've seen on minimum wage increases, the most important aspect of this is NEVER MENTIONED. Not a word. That is the increase in DISPOSABLE INCOME resulting in INCREASES SALES$$$. All businesses get this, and generally it far outweighs labor increases, since the number of wage raised consumers (not just those at the minimum wage) by far outnumbers any one employer's workers who are getting wage increases.

Then there's also the fact that many business, while receiving this big SALES boost, do NOT have any wage loss at all. These are businesses who are mom & pop and have no employees, those whose workers are all working just on sales commission (car lots, furniture, real estate, insurance, etc), and third, those with skilled workers (ex. machine shops) whose workers all already get well over $15 hour, or whatever the MW would be raised to.

I think back to when I owned a business. I paid my commission salespeople $350/hour (in 2015 dollars), and they still were only receiving 15% of the sale. In all, I made fine profits and expanded the business. Biggest downer ? All the people who called in and said > "Sorry. I can't afford it." Of course they can't. Not one somebody out there is paying them a low minimum wage. To be successful in business, you have a lot fo things to do. But you can't do anything, if the public around you doesn't have money in their pockets to buy what you're trying to sell.

This is why Conservatives who support raising the MW nationwide, outnumber Conservatives who don't, 54% to 44%.

I love liberal economic thinking. I call it stage one thinking. More money = more purchases and more purchases =more money. Isn't is obvious you haven't thought far enough into this? With scarcity in mind, what would happen to normal and inferior goods? What of those businesses? What of those jobs that already pay what the proposed new minimum would pay? How will those workers react and what will they do? What of imports and exports? Pull on that string for a bit before you come to such elementary conclusions. We do not have a ceteris paribus economy.

C'mon man, Protectionist is the last remaining "true conservative" just ask her.

 

[Anathema]

Of course there's a hell of an increase in consumer spending when the minimum wage is increased. Imagine yourself being saddled down with a 40 hour a week job paying $7.25/hour. You'd be lucky just to cover your necessities. Now all of a sudden you're getting $15/hour for those 40 hours. You got a long list of things to buy, and the stores brace themselves for a customer tsunami.

Funny but I did something very similar to that about 17 years ago when I moved and changed jobs. In my experience what happened was that the additional money didn't get wasted on TV sets, dinners, etc..... but in things like rent on a new apartment, better car insurance, and better quality groceries.

 

[CrusaderFrank]

Where is the chart that shows employers the precise number of employees they should hire in order to get the most income/profit?

It's called business school, dopey.

No one wants to eat at an understaffed restaurant.

So we need government to set staffing guidelines, amiright?