CBO: Democrats' proposed Min-wage hike would cost businesses $15 billion

[Skull Pilot]

Less than 3% of workers make minimum wage now tell me what businesses do you think pay only minimum wage?

Is it the multinational conglomerate fortune 100? No

Is it big domestic business? No

Is it the small businessman who barely makes enough to keep his doors open and actually pays some workers more than minimum wage but not the proposed minimum wage who will feel the pain most? Yes.

Then he needs to change his business model and practices so that he can run a business well enough to make a profit AND pay his employees a decent wage.

And what if the market for his area of business does not support the higher prices he would have to charge in order to pay the extra wages?

 

[Skull Pilot]

Less than 3% of workers make minimum wage now tell me what businesses do you think pay only minimum wage?

Is it the multinational conglomerate fortune 100? No

Is it big domestic business? No

Is it the small businessman who barely makes enough to keep his doors open and actually pays some workers more than minimum wage but not the proposed minimum wage who will feel the pain most? Yes.

Then he needs to change his business model and practices so that he can run a business well enough to make a profit AND pay his employees a decent wage.

There is more profit to be made by paying low wages and letting the taxpayer pay for food, housing and healthcare

It is a win-win for business

The problem there that you conveniently ignore is that the government has made it easier and easier to get on the dole.

THAT is the real problem here

 

[g5000]

A Senate Democratic bill gradually increasing the federal minimum wage to $10.10 hourly would require private businesses to spend $15 billion more in salaries

You say that as if that is a bad thing!

American workers will earn more money? OH MY GOD! That's terrible!

And the poor and retired will wind up being hurt the most, those cost will be passed to the consumers. That $7.00 burger and fries will be come $10.00 before you know it. It inflationary pure and simple.

You would be right if that were true. Sadly for you, it would not have that big an impact on the price of your burger.

Sorry.

 

[rightwinger]

Then he needs to change his business model and practices so that he can run a business well enough to make a profit AND pay his employees a decent wage.

There is more profit to be made by paying low wages and letting the taxpayer pay for food, housing and healthcare

It is a win-win for business

The problem there that you conveniently ignore is that the government has made it easier and easier to get on the dole.

THAT is the real problem here

Actually, it is pathetically low wages that has made it easier and easier to end up on the dole

THAT is the real problem here

 

[Care4all]

Less than 3% of workers make minimum wage now tell me what businesses do you think pay only minimum wage?

Is it the multinational conglomerate fortune 100? No

Is it big domestic business? No

Is it the small businessman who barely makes enough to keep his doors open and actually pays some workers more than minimum wage but not the proposed minimum wage who will feel the pain most? Yes.

Then he needs to change his business model and practices so that he can run a business well enough to make a profit AND pay his employees a decent wage.

And what if the market for his area of business does not support the higher prices he would have to charge in order to pay the extra wages?

The market includes your competitors too and they too will have to pay the higher minimum wage, right? so it's not like you will have to charge more for your widget or service than they do....the "market" will just pay the higher price if there is no cheaper price to be found...

I went through a Brazilian leather shortage once...all of our leather shoes from Brazil retailed for around $26, the following season with the same shoes, had to retail for $38.00 due to this leather shortage (which came from an increase in leather couches being purchased due to a fad) and the higher cost of goods prices....

I was absolutely certain, beyond any doubt, that I was going to lose my ass that year in sales....I knew there was no way in the world these women would pay $38 for the same shoe they bought the previous year for $26...

I was WRONG and made one of the biggest mistakes of my career by not buying these $38.00 retail shoes in the depth that was needed to service and sell and meet the demand.....

so you would be surprised at how well the "market" can absorb minor increases...shoot, they absorbed a HUGE increase in price with my example.....

I wouldn't "sweat the small things", you'll do just fine Skull, plus you seem like a 'go getter', someone who will not accept failure when it comes to his business, and to me this means YOU WILL figure something out to continue your successful business.

 

[NYcarbineer]

Less than 3% of workers make minimum wage now tell me what businesses do you think pay only minimum wage?

Is it the multinational conglomerate fortune 100? No

Is it big domestic business? No

Is it the small businessman who barely makes enough to keep his doors open and actually pays some workers more than minimum wage but not the proposed minimum wage who will feel the pain most? Yes.

Then he needs to change his business model and practices so that he can run a business well enough to make a profit AND pay his employees a decent wage.

And what if the market for his area of business does not support the higher prices he would have to charge in order to pay the extra wages?

So what if he says I can't stay in business if I have to pay overtime after 8 hours? Or I can't stay in business if I have to pay into SS and Medicare? Or I can't stay in business if I have to pay to meet environmental regulations?

People go out of business every day, but then again, businesses stay in business that same day,

and they get the customers the other guy couldn't make a go of serving.

 

[auditor0007]

How much do those businesses profit collectively? More than $15b?

That is not the point. If they profit $20 billion, are you saying that is just too much? If you are going to make arguments for a hike in the minimum wage, do it based on the positive aspects rather than arguing businesses should pay it because they should not be making a profit. Of course they need to make a profit. Why would they be in business otherwise? I didn't go into business so I could run a charity. I went into business to make money.

Now the argument that makes sense is that by paying minimum wage workers more, companies will reduce turnover which will result in happier employees that work harder. It will also reduce training costs as employees will stay longer. Last of all, by increasing the income of minimum wage workers, wages will also be increased to near minimum wage employees. All that additional income will be put right back into the economy as these people spend all of their income. That will create additional opportunities for these businesses and their owners.

We need to get American business back into the mindset of growing profits through expansion of their businesses rather than from cutting costs to the bare bones. This is where we have been for quite some time, which has pushed wages down considerable over the past decade and a half.

 

[Mac1958]

How much do those businesses profit collectively? More than $15b?

That is not the point. If they profit $20 billion, are you saying that is just too much? If you are going to make arguments for a hike in the minimum wage, do it based on the positive aspects rather than arguing businesses should pay it because they should not be making a profit. Of course they need to make a profit. Why would they be in business otherwise? I didn't go into business so I could run a charity. I went into business to make money.

Now the argument that makes sense is that by paying minimum wage workers more, companies will reduce turnover which will result in happier employees that work harder. It will also reduce training costs as employees will stay longer. Last of all, by increasing the income of minimum wage workers, wages will also be increased to near minimum wage employees. All that additional income will be put right back into the economy as these people spend all of their income. That will create additional opportunities for these businesses and their owners.

We need to get American business back into the mindset of growing profits through expansion of their businesses rather than from cutting costs to the bare bones. This is where we have been for quite some time, which has pushed wages down considerable over the past decade and a half.

Yep.

This is the worst, most hostile government/business environment in recent memory, and either they don't understand business dynamics enough to see it, or they refuse to admit it.

Maybe both, I don't know.

.

 

[NYcarbineer]

Why don't we think of it as a 15 billion dollar gain for the lowest paid workers in America?

See, you feel better already...

15 billion less that the taxpayers have to subsidize

Liar...

How McDonald's and Wal-Mart Became Welfare Queens

"...the new welfare queens are even bigger, richer and less deserving of taxpayer support. The two biggest welfare queens in America today are Wal-Mart and McDonald's.

This issue has become more known as we learn just how far some companies have gone in putting their employees on public assistance. According to one study, American fast food workers receive more than $7 billion dollars in public assistance. As it turns out, McDonald's has a “McResource” line that helps employees and their families enroll in various state and local assistance programs. It exploded into the public when a recording of the McResource line advocated that full-time employees sign up for food stamps and welfare.

Wal-Mart, the nation’s largest private sector employer, is also the biggest consumer of taxpayer supported aid. According to Florida Congressman Alan Grayson, in many states, Wal-Mart employees are the largest group of Medicaid recipients. They are also the single biggest group of food stamp recipients. Wal-mart’s "associates" are paid so little, according to Grayson, that they receive $1,000 on average in public assistance. These amount to massive taxpayer subsidies for private companies.

Why are profitable, dividend-paying firms receiving taxpayer subsidies? The short answer is, because they can...."

How McDonald's and Wal-Mart Became Welfare Queens - Bloomberg

 

[Anonymous1776]

The non-partisan COngressional Business Office has calculated that the Democrats' proposed wage hike will costs American businesses $15 billion.

For those that stay in business, any increase to the minimum wage won't cost businesses anything. The cost of the increase will be passed on to consumers, including the so-called beneficiaries of the minimum wage themselves, in the form of higher prices, less product, and less quality product, erasing any perceived increase in the minimum wage. These higher prices have a ripple effect through the market, raising the cost of everything, which completely erases any perceived benefit to minimum wage earners. The resulting distortion and inefficiency in the market will cause costs to increase yet further.

It will also result in higher unemployment, as some employers make up the difference by firing less productive employees. While yet others shut their doors completely, as they can no longer compete with those who have a lower cost of doing business, such as those in other cities/states with less regulations and those in foreign countries who aren't subject to such burdensome, government wage controls. It should be no wonder why so many American jobs go to foreign countries. We've essentially made it illegal for American businesses to compete with their foreign counterparts.

 

[NYcarbineer]

How much do those businesses profit collectively? More than $15b?

That is not the point. If they profit $20 billion, are you saying that is just too much? If you are going to make arguments for a hike in the minimum wage, do it based on the positive aspects rather than arguing businesses should pay it because they should not be making a profit. Of course they need to make a profit. Why would they be in business otherwise? I didn't go into business so I could run a charity. I went into business to make money.

Now the argument that makes sense is that by paying minimum wage workers more, companies will reduce turnover which will result in happier employees that work harder. It will also reduce training costs as employees will stay longer. Last of all, by increasing the income of minimum wage workers, wages will also be increased to near minimum wage employees. All that additional income will be put right back into the economy as these people spend all of their income. That will create additional opportunities for these businesses and their owners.

We need to get American business back into the mindset of growing profits through expansion of their businesses rather than from cutting costs to the bare bones. This is where we have been for quite some time, which has pushed wages down considerable over the past decade and a half.

Yep.

This is the worst, most hostile government/business environment in recent memory, and either they don't understand business dynamics enough to see it, or they refuse to admit it.

Maybe both, I don't know.

.

Maybe it just looks that way because businesses have been so spoiled in the couple decades or more.

Trying to get workers a bigger piece of the pie they help bake, after their share has shrunk for decades,

doesn't seem unreasonable to me.

 

[Care4all]

The non-partisan COngressional Business Office has calculated that the Democrats' proposed wage hike will costs American businesses $15 billion.

For those that stay in business, any increase to the minimum wage won't cost businesses anything. The cost of the increase will be passed on to consumers, including the so-called beneficiaries of the minimum wage themselves, in the form of higher prices, less product, and less quality product, erasing any perceived increase in the minimum wage. These higher prices have a ripple effect through the market, raising the cost of everything, which completely erases any perceived benefit to minimum wage earners. The resulting distortion and inefficiency in the market will cause costs to increase yet further.

It will also result in higher unemployment, as some employers make up the difference by firing less productive employees. While yet others shut their doors completely, as they can no longer compete with those who have a lower cost of doing business, such as those in other cities/states with less regulations and those in foreign countries who aren't subject to such burdensome, government wage controls. It should be no wonder why so many American jobs go to foreign countries. We've essentially made it illegal for American businesses to compete with their foreign counterparts.

so, if a ceo went from being paid $200,000 a year to being paid $2,000,000 a year, do you have the same concerns of prices going up...only with just the Ceo getting more in salary..... there are no NEW potential purchasers for the widgets being sold like there could and would be if all those people at min wage were getting an increase....?

and are you suggesting that we never ever raise the minimum wage even when prices in the market for all goods are going up and up and up and up, WITHOUT a hike in minimum wage but from increases in ceo's salaries, and an increase in the cost of goods, and an increase in shipping costs, and an increase in overhead?

We went over a decade in this nation with no fed minimum wage hikes....are you implying that there was no cost of living increases over those 10 years because there was no hike in the minimum wage?

 

[Mac1958]

That is not the point. If they profit $20 billion, are you saying that is just too much? If you are going to make arguments for a hike in the minimum wage, do it based on the positive aspects rather than arguing businesses should pay it because they should not be making a profit. Of course they need to make a profit. Why would they be in business otherwise? I didn't go into business so I could run a charity. I went into business to make money.

Now the argument that makes sense is that by paying minimum wage workers more, companies will reduce turnover which will result in happier employees that work harder. It will also reduce training costs as employees will stay longer. Last of all, by increasing the income of minimum wage workers, wages will also be increased to near minimum wage employees. All that additional income will be put right back into the economy as these people spend all of their income. That will create additional opportunities for these businesses and their owners.

We need to get American business back into the mindset of growing profits through expansion of their businesses rather than from cutting costs to the bare bones. This is where we have been for quite some time, which has pushed wages down considerable over the past decade and a half.

Yep.

This is the worst, most hostile government/business environment in recent memory, and either they don't understand business dynamics enough to see it, or they refuse to admit it.

Maybe both, I don't know.

.

Maybe it just looks that way because businesses have been so spoiled in the couple decades or more.

Trying to get workers a bigger piece of the pie they help bake, after their share has shrunk for decades,

doesn't seem unreasonable to me.

So I'm correct in assuming that you do understand how bad the environment is, and that you don't care?

.

 

[Care4all]

where is the BUSINESS COST BENEFIT Analysis of this....having ONLY one figure to analyze....the COST without analyzing the BENEFITS from the cost is a USELESS analysis.....

anyone in Business, knows this.....

 

[NYcarbineer]

The non-partisan COngressional Business Office has calculated that the Democrats' proposed wage hike will costs American businesses $15 billion.

For those that stay in business, any increase to the minimum wage won't cost businesses anything. The cost of the increase will be passed on to consumers, including the so-called beneficiaries of the minimum wage themselves, in the form of higher prices, less product, and less quality product, erasing any perceived increase in the minimum wage. These higher prices have a ripple effect through the market, raising the cost of everything, which completely erases any perceived benefit to minimum wage earners. The resulting distortion and inefficiency in the market will cause costs to increase yet further.

It will also result in higher unemployment, as some employers make up the difference by firing less productive employees. While yet others shut their doors completely, as they can no longer compete with those who have a lower cost of doing business, such as those in other cities/states with less regulations and those in foreign countries who aren't subject to such burdensome, government wage controls. It should be no wonder why so many American jobs go to foreign countries. We've essentially made it illegal for American businesses to compete with their foreign counterparts.

The amount of the wage hike goes right back into the economy as consumption, and increased consumption means increased sales, including increased sales for businesses employing minimum wage workers.

 

[NYcarbineer]

Yep.

This is the worst, most hostile government/business environment in recent memory, and either they don't understand business dynamics enough to see it, or they refuse to admit it.

Maybe both, I don't know.

.

Maybe it just looks that way because businesses have been so spoiled in the couple decades or more.

Trying to get workers a bigger piece of the pie they help bake, after their share has shrunk for decades,

doesn't seem unreasonable to me.

So I'm correct in assuming that you do understand how bad the environment is, and that you don't care?

.

Do I have to say everything twice? The environment for labor has been bad for 30 years ever since de-industrialization and globalization got into full swing. It's pretty lame to scream bloody murder over the possibility that here and there the American worker might regain a small bit of all that ground he's lost.

 

[auditor0007]

How much do those businesses profit collectively? More than $15b?

That is not the point. If they profit $20 billion, are you saying that is just too much? If you are going to make arguments for a hike in the minimum wage, do it based on the positive aspects rather than arguing businesses should pay it because they should not be making a profit. Of course they need to make a profit. Why would they be in business otherwise? I didn't go into business so I could run a charity. I went into business to make money.

Now the argument that makes sense is that by paying minimum wage workers more, companies will reduce turnover which will result in happier employees that work harder. It will also reduce training costs as employees will stay longer. Last of all, by increasing the income of minimum wage workers, wages will also be increased to near minimum wage employees. All that additional income will be put right back into the economy as these people spend all of their income. That will create additional opportunities for these businesses and their owners.

We need to get American business back into the mindset of growing profits through expansion of their businesses rather than from cutting costs to the bare bones. This is where we have been for quite some time, which has pushed wages down considerable over the past decade and a half.

Yep.

This is the worst, most hostile government/business environment in recent memory, and either they don't understand business dynamics enough to see it, or they refuse to admit it.

Maybe both, I don't know.

.

See, I don't really see it that way. I honestly believe that by keeping wages low, we have helped create an economic atmosphere that is not conducive to growth.

When you see that the minimum wage has gradually been lowered as a percentage of the average wage, it also makes us realize that has reduced the average wage. While I agree that business needs an incentive to expand their businesses, the first thing they need is demand for their products or services, and if those who spend the money do not have the money to spend, there will be no demand.

The argument isn't an either/or argument. The problem we run into is we have some people who think the minimum wage should be $15 per hour which is way out of line and would be a real detriment to economic growth. On the other hand though, we see the exact opposite extreme where there is an argument that there should be no minimum wage at all, and on top of that we should remove all social welfare programs. In other words, we want to see people living by the millions in ghettos like we see in India.

Remember, there was a time in this country when there was no minimum wage. Unions ended up forming because employers didn't give a shit about their employees. Strikes became violent in many cases with workers being beat and sometimes killed. We do not need to go back to that.

Let me tell you a story. My youngest son works at McDonald's. He's a junior in high school. Some weeks he gets 25 hours when he is asked to stay longer because other employees call off or just don't show up, but some weeks he only gets around 12 hours. He likes his job, for now, and would like to stay there, but he needs 20 hours per week to make enough to make his car payment, insurance, cell phone bill, and to have a little extra left over. So anyway, he's looking for a second or different job, so that he can get the 20 hours every week that he needs. He also wants more hours over the summer. Here's the thing. McDonald's may lose him as they have many other good employees because they are continually adding on more people than they need. The cost of training all these people has to be enormous. He told me that the one location he works at hires and goes through between 400 and 500 employees per year. Think about that. At any one time, they need about 100 employees, so their employee turnover is four to five times per year. That just doesn't even make sense. It took my son nearly three months to learn everything he needed to learn to work there, so that he can do any of the jobs.

If companies can reduce their training costs by paying workers a bit more, it just makes sense to do so, yet everyone seems to want to fight it. I can tell you one thing; companies that pay more do not have that type of employee turnover. They actually save themselves money in the long run.

 

[Mac1958]

Maybe it just looks that way because businesses have been so spoiled in the couple decades or more.

Trying to get workers a bigger piece of the pie they help bake, after their share has shrunk for decades,

doesn't seem unreasonable to me.

So I'm correct in assuming that you do understand how bad the environment is, and that you don't care?

.

Do I have to say everything twice? The environment for labor has been bad for 30 years ever since de-industrialization and globalization got into full swing. It's pretty lame to scream bloody murder over the possibility that here and there the American worker might regain a small bit of all that ground he's lost.

You have to say things twice when you avoid answering a question.

And you just did it again.

This appears to be genetic with partisan ideologues.

I'll take this as a "yes, I know but I don't care."

Thanks.

.

 

[Care4all]

So I'm correct in assuming that you do understand how bad the environment is, and that you don't care?

.

Do I have to say everything twice? The environment for labor has been bad for 30 years ever since de-industrialization and globalization got into full swing. It's pretty lame to scream bloody murder over the possibility that here and there the American worker might regain a small bit of all that ground he's lost.

You have to say things twice when you avoid answering a question.

And you just did it again.

This appears to be genetic with partisan ideologues.

I'll take this as a "yes, I know but I don't care."

Thanks.

.

He's saying the environment is bad "for the workers", and you seem to be saying that the environment is bad "for businesses" or for Corporations.....

both agreeing the environment is "bad",but for completely different reasons???

 

[Anonymous1776]

No one forces you to own a business. If you don't want to pay a fair wage, then move on

SIMPLE

True, businesses who don't offer a competitive wage will be forced to move on, as employees leave to work for competitors who offer similar jobs for higher wages. No government coercion or minimum wage law needed. Simple, indeed!