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Sure. Company has $1,000,000 in sales. $500,000 COGS and $300,000 wage expenses. Sales increase by $100,000 and wage expense increases by $20,000. Profit increases $30,000.
How does the magical minimum wage increase lead to 5 times more spending than the actual wage increase?
Why wouldn't it? The company has few employees who got the raise and lots of customers who got a big wage increase.
For that to occur, you'd have other companies that had an increased wage expense without an increase in sales.
Why? Every company has way more customers than employees. Or they should.
We have a saying in Retail, that we strive for, always..especially in bad times:
"SALES heals all wounds"
And yes they do.
Increased sales, while as an owner of a business you are still paying the same rate for rent for your sandwich shop, and paying the same for your electricity, cooling, heating that you always pay, and the same for your monthly Insurance coverage and the same for all of your fixed business expenses, saves your ass when other things have to go up, such as a small minimum wage hike for a handful of your employees...or your Mark-down allowance needs to go up to accelerate your sales etc.
Increased sales can not be disregarded as most of you are doing, in being a major factor in any business, and in the "minimum wage" hike argument... imo.
Also, in addition to increased sales, finding ways to reduce your fixed expenses can help offset the increase in wages....like making the business expenditure of putting in solar panels, so that your electricity bill is lower, or putting in a geothermal heater, or heat pump AC unit, shop around for better insurance for your shop, at a lower cost....find a better price on your take out bags by buying in bulk...keep the lights off in the bathrooms until someone enters....when the going gets tough, the tough get going...it isn't all easy peasy, but it can be done, there is always a way to better your business and its expenses....waste naught....
Protectionist has made a good point in his/her? op.
Do you even realize how hollow this response is? You don't even have an argument. Any idiot taking an Econ class knows that consumer spending is what drives this economy. Consumer spending comes from paychecks. This isn't hard to grasp.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.
Where is the chart that shows employers the precise number of employees they should hire in order to get the most income/profit?
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.
Where is the chart that shows employers the precise price level they need in order to get the most sales/income?
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 ?
Did anyone say moving was 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.
Imagine a machine shop with over 100 large production machines, having to pay higher wages than the business could support. Imagine that business running at a loss, just because some politicians, who couldn't pass an Econ 101 class, created a stupid law.
Yeah > So when you come up with one of those "most damning arguments against a higher minimum wage", you be sure to let us know, OK ?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."
AKA SALES$$$$$.Funny but I did something very similar to that about 17 years ago when I moved and changed jobs. In my experience what happened was that the additional money didn't get wasted on TV sets, dinners, etc..... but in things like rent on a new apartment, better car insurance, and better quality groceries.
Nobody said that here. Stay on topic.So we need government to set staffing guidelines, amiright?
Nothing to confuse. As sales, exceeding costs, grow, so does profit. Try running a business someday. You'll see how it works.The only point protectionist made was confusing sales for profit.
You'd be better off if you'd forgo the false analogies.'Consumer spending drives the economy?' If you learned that in an Econ class I srsly recommend you get your money back. Answer me this, if I take blood from your left arm and put into your right arm, are you any better off before I did anything at all?
Nothing to confuse. As sales, exceeding costs, grow, so does profit. Try running a business someday. You'll see how it works.The only point protectionist made was confusing sales for profit.
For the children in the Democrat base. SERIOUSLY!!!!!! you can't be taken serious
Published on Jan 18, 2014
Eliminate the minimum wage! This was the first piece that my kids watched and knew that the Minimum Wage increases unemployment, increases all our prices and it hurts the poor and the less educated.
You'd be better off if you'd forgo the false analogies.'Consumer spending drives the economy?' If you learned that in an Econ class I srsly recommend you get your money back. Answer me this, if I take blood from your left arm and put into your right arm, are you any better off before I did anything at all?
FALSE analogy. A govt mandate to increase milk prices doesn't increase disposable income and SALES$$$$. Raising minimum wage does. Still another confirmation of the title of the OP >> (Minimum Wage Increase: They Never Talks About the SALES) I've lost count now.As an employer, labor = costs. Why or how libtards can't see this is mind-boggling. Think of it this way, if government mandated that the price of milk be doubled overnight, would that be good or would that be bad? Well, it would be good for the milk manufacturer, but what about those people having to buy milk? Would more or less milk be bought?
FALSE analogy. A govt mandate to increase milk prices doesn't increase disposable income and SALES$$$$. Raising minimum wage does. Still another confirmation of the title of the OP >> (Minimum Wage Increase: They Never Talks About the SALES) I've lost count now.As an employer, labor = costs. Why or how libtards can't see this is mind-boggling. Think of it this way, if government mandated that the price of milk be doubled overnight, would that be good or would that be bad? Well, it would be good for the milk manufacturer, but what about those people having to buy milk? Would more or less milk be bought?
1. You never studied economics academically, apparently. If you did, you flunked. You CAN'T raise prices. (God, how many times do I have to tell these airheads this ? Sheeesh!) Your price is a market price, It comes from the MARKET, not you. It's the highest price you can charge without causing your sales to drop to where your income is less than before that price hike. If you go higher, guess what happens ? I just told you.False analogies? Geez, you literally have to be an idiot (or a liberal) to not understand how this works. Your wages get doubled overnight by gov't mandate. My profit margin is what keeps me in business. Not my sales totals, my profit margin. The increase in wages cuts into my profit margin - to compensate, I increase the price of my product. Thus, your wages are higher, but you are now paying more for the goods I provide. Have you gained any ground what-so-ever? Left arm, right arm, all back to square one.
Raising MW raises disposable income for THOUSANDS of consumers. Get it ?Theoretically, as a milk producer, would that not put extra $$$s (AKA SALES??!?!) in my pocket?? Except, what about all those people who now have to pay extra for milk? You tell me, is paying more for milk a good thing or a bad thing? (AKA SALES??!!?!)
Nothing to confuse. As sales, exceeding costs, grow, so does profit. Try running a business someday. You'll see how it works.The only point protectionist made was confusing sales for profit.
HA HA HA. Can you believe this ? I think is is a real question (as hard to believe as it may be) Pheeeeew!! (high-pitched whistle, eyes rolling around in head)Where are the increased sales coming from.....
1. You never studied economics academically, apparently. If you did, you flunked. You CAN'T raise prices. (God, how many times do I have to tell these airheads this ? Sheeesh!) Your price is a market price, It comes from the MARKET, not you. It's the highest price you can charge without causing your sales to drop to where your income is less than before that price hike. If you go higher, guess what happens ? I just told you.False analogies? Geez, you literally have to be an idiot (or a liberal) to not understand how this works. Your wages get doubled overnight by gov't mandate. My profit margin is what keeps me in business. Not my sales totals, my profit margin. The increase in wages cuts into my profit margin - to compensate, I increase the price of my product. Thus, your wages are higher, but you are now paying more for the goods I provide. Have you gained any ground what-so-ever? Left arm, right arm, all back to square one.
PS- this has been mentioned 30 times in the the thread, Try reading it, before barging in here unaware.
For the children in the Democrat base. SERIOUSLY!!!!!! you can't be taken serious
Published on Jan 18, 2014
Eliminate the minimum wage! This was the first piece that my kids watched and knew that the Minimum Wage increases unemployment, increases all our prices and it hurts the poor and the less educated.
1. It can't increase unemployment (see item # 1 in the OP)
2. It cant increase prices (see item # 2 in the OP)
3. The Republican base supports MW increase in addition to the Democrat base.
Strike 2, Strike 2, Strike 3.
