Minimum Wage Increase: They Never Talks About the SALES

[protectionist]

Look, If I went in to buy a steak and I was willing to pay say......20 bucks for a 10 dollar piece of meat then sure jack up the wages.

But if you think that you can raise said wage to 15 bucks and the price of said steak to 22 bucks and I wasn't willing to pay that....you are fucked.

Raising the MW has nothing to do with prices. See item # 2 in the OP.

dear, all costs are reflected in price. This is why an apple always costs less than a Rolls Royce

That still has nothing to do with MW raise. (see item # 2 in the OP)

 

[Flipper]

Look, If I went in to buy a steak and I was willing to pay say......20 bucks for a 10 dollar piece of meat then sure jack up the wages.

But if you think that you can raise said wage to 15 bucks and the price of said steak to 22 bucks and I wasn't willing to pay that....you are fucked.

Raising the MW has nothing to do with prices. See item # 2 in the OP.

"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."

You are an idiot.

 

[protectionist]

Your ignorance of retail reality is duly noted.

If you have some point to make, make it. Hot air rhetoric doesn't carry any weight. Fight or flight.

 

[Flipper]

The OP is an idiot's guide to Leftwing stupidity.

 

[EdwardBaiamonte]

. Any change in price (up or down) results in reduction of SALES and income.

dear, the law of supply and demand says that when price goes up demand goes down.
Did you ever wonder why a Rolls Royce sells less than a Chevy???

See why we say slow???

 

[Clementine]

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%.

You've never run a business, have you?

It hurts the small businesses the most. You know that the fast food places don't even need the people they have, right? They could go to machines and just keep the cooks.

Walmart doesn't need the greeters, but do it to employ elderly who want extra money.

Small businesses often do need help, but can't afford it. An increase in minimum would mean no extra cashiers at busy times.

 

[Flipper]

Your ignorance of retail reality is duly noted.

If you have some point to make, make it. Hot air rhetoric doesn't carry any weight. Fight or flight.

I never run kid, ever.

YOU have never run a business, ALL costs are reflected in the end users price........now run along and suckle at Obama's teat.

 

[protectionist]

. Businesses CANNOT raise prices because they are already fixed at a market price, related to maximization of sales/income. .

dear, sad to say prices actually do go up and down. Computer prices have come way down for example. Gas prices have gone up and down .

See how 100% slow you really are??

But not in response to increased labor costs. Also, don't you know the moving gas prices is a scam ? They move down occasionally to shut everybody up, and not think about how much higher they are than just a few years ago.

And you can forget trying to shake my confidence. I OWN this OP.

 

[UllysesS.Archer]

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.

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.

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.

 

[protectionist]

I never run kid, ever.

YOU have never run a business, ALL costs are reflected in the end users price........now run along and suckle at Obama's teat.

I'm 69 years old. You don't get to call me "kid". LOL.

I owned and ran a business for 12 years, which I started on practically nothing, and expanded it to 3 branch offices in 3 different counties.

Costs are reflected in the price, yes, but once the market price is established, it CANNOT be changed. Any change to it, up or down, results in lost income (because of reduced sales in the case of a price raise)

 

[EdwardBaiamonte]

But not in response to increased labor costs.

so the typical low IQ liberal is saying the as wages go up prices go down??

See why we say liberalism is based in pure ignorance??

 

[Flipper]

I never run kid, ever.

YOU have never run a business, ALL costs are reflected in the end users price........now run along and suckle at Obama's teat.

I'm 69 years old. You don't get to call me "kid". LOL.

I owned and ran a business for 12 years, which I started on practically nothing, and expanded it to 3 branch offices in 3 different counties.

Costs are reflected in the price, yes, but once the market price is established, it CANNOT be changed. Any change to it, up or down, results in lost income (because of reduced sales in the case of a price raise)

I never run kid, ever.

YOU have never run a business, ALL costs are reflected in the end users price........now run along and suckle at Obama's teat.

I'm 69 years old. You don't get to call me "kid". LOL.

I owned and ran a business for 12 years, which I started on practically nothing, and expanded it to 3 branch offices in 3 different counties.

Costs are reflected in the price, yes, but once the market price is established, it CANNOT be changed. Any change to it, up or down, results in lost income (because of reduced sales in the case of a price raise)

Of course it can, if the market is not fluid it cannot survive....ALL businesses MUST be fluid or the die.

 

[protectionist]

You've never run a business, have you?

It hurts the small businesses the most. You know that the fast food places don't even need the people they have, right? They could go to machines and just keep the cooks.

Walmart doesn't need the greeters, but do it to employ elderly who want extra money.

Small businesses often do need help, but can't afford it. An increase in minimum would mean no extra cashiers at busy times.

1. I just told you I owned and ran a business (3 branch offices) for 12 years.

2. MW increase HELPS business. I badgered my legislators to raise the CA MW, and finally in 1988 they did.

3. If a business owner can't afford to pay a decent wage, then he can't afford to be a business owner. He should do what all the other people who also can't afford it do. Get a JOB.

 

[EdwardBaiamonte]

Also, don't you know the moving gas prices is a scam ?

100% stupid!! So the fracking horizontal drilling revolution and increased supply and lower prices are a scam???


See why we liberalism is based in pure ignorance??

 

[protectionist]

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.

 

[Anathema]

The minute any business in my area starts paying minimum wage employees double digit dollars an hour THEY LOSE MY BUSINESS PERMANENTLY.

 

[protectionist]

Of course it can, if the market is not fluid it cannot survive....ALL businesses MUST be fluid or the die.

You're saying the firm can raise it's price above it's market price ?

 

[EdwardBaiamonte]

3. If a business owner can't afford to pay a decent wage,

100% stupid as always. Two workers at a mere 40 hours a week at Walmart earn 40K a year. That make them richer than 90% of all the human beings who have ever lived!! And those wages are lower than they would be if liberal unions taxes and deficits had driven 30 million jobs offshore and that is to say nothing about the 20 million illegals invited in to take the remaining jobs and bid down the wages and that is to say nothinkg of the liberal war on the schools and family and the way it affects wages!!

Catching on now??

 

[Flipper]

Of course it can, if the market is not fluid it cannot survive....ALL businesses MUST be fluid or the die.

You're saying the firm can raise it's price above it's market price ?

I'm saying is the costs demand it then yes.

 

[protectionist]

100% stupid!! So the fracking horizontal drilling revolution and increased supply and lower prices are a scam???

See why we liberalism is based in pure ignorance??

I'm not a liberal or anything close to it, and standing alongside my Conservatives policies, might leave you looking like Harry Reid.