Minimum Wage Increase: They Never Talks About the SALES

[healthmyths]

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%.

ARE YOU an idiot? YOU PAID A COMMISSION! NOT A SALARY!
Did you pay SS/Medicare on the $350/hour equivalent "salary"? Of course not! DUMB F...K!

 

[CrusaderFrank]

The op and progressive amen choir show why progressives have a 100% fail rate at running an economy irrespective of size

 

[protectionist]

ARE YOU an idiot? YOU PAID A COMMISSION! NOT A SALARY!
Did you pay SS/Medicare on the $350/hour equivalent "salary"? Of course not! DUMB F...K!

Shut up, idiot! Pay is pay. Out of my pocket. Into theirs. Get it ?

 

[protectionist]

The op and progressive amen choir show why progressives have a 100% fail rate at running an economy irrespective of size

Raising MW is not "progressive" It is supported by majorities of both progressives AND CONSERVATIVES. Please stop dirtying up the thread with ignorance.

 

[healthmyths]

ARE YOU an idiot? YOU PAID A COMMISSION! NOT A SALARY!
Did you pay SS/Medicare on the $350/hour equivalent "salary"? Of course not! DUMB F...K!

Shut up, idiot! Pay is pay. Out of my pocket. Into theirs. Get it ?

SO you paid them $350 per hour for every hour they worked PLUS you paid their SS/Medicare of 6.02% on top of that?
And they got that pay regardless if they made any sales. Every hour they worked. 40 hours they received a paycheck of $14,000 a week for 40 hours of work..right?
Plus you paid on top of that $868 in SS/Medicare right???

 

[Wyatt earp]

The op and progressive amen choir show why progressives have a 100% fail rate at running an economy irrespective of size

Raising MW is not "progressive" It is supported by majorities of both progressives AND CONSERVATIVES. Please stop dirtying up the thread with ignorance.

the only conservatives who support it are millionaire business owners to kill competition, who are you trying to fool?

 

[protectionist]

God Damn you are dumb sales might have went up but its just a Fucking number, buying power went down, a $1000 dollars put under a mattress in 1986 is only worth around $600 today and artificially raising wages is trickle up poor, people making $8 to $15 dollars won't get a raise

If your pay just went up from $7.25 /hour to $15/hour, you can now buy a car, a boat, nice clothes, a guitar, etc. This year, next year, and the year after that. Have a nice day.

 

[2aguy]

The op and progressive amen choir show why progressives have a 100% fail rate at running an economy irrespective of size

Raising MW is not "progressive" It is supported by majorities of both progressives AND CONSERVATIVES. Please stop dirtying up the thread with ignorance.

the only conservatives who support it are millionaire business owners to kill competition, who are you trying to fool?

And don't forget the republican "moderates" who want to "reach across the aisle" to "get something done" which means they foolishly believe that voting for something they know is destructive to the poor and jobs will save them from the democrats in the media......of course it never does.....

 

[healthmyths]

The op and progressive amen choir show why progressives have a 100% fail rate at running an economy irrespective of size

Raising MW is not "progressive" It is supported by majorities of both progressives AND CONSERVATIVES. Please stop dirtying up the thread with ignorance.

So you would be in favor of raising minimum wage for 3.6 million people to $15/hour right?

Among those paid by the hour, 1.6 million earned exactly the prevailing federal minimum wage of $7.25 per hour. About 2.0 million had wages below the federal minimum. Together, these 3.6 million workers with wages at or below the federal minimum made up 4.7 percent of all hourly paid workers.Feb 26, 2013
www.bls.gov/cps/minwage2012.htm

This would mean that the remaining 73 million that work above minimum... shouldn't they get a hourly raise also?

That means if the minimum wage was doubled, then each of the 73 million that are paid $24.34 per hour should be doubled to $48/hour right?
Only fair. I wonder how many businesses can pass on the doubling of their labor costs to their customers?
Table B-3. Average hourly and weekly earnings of all employees on private nonfarm payrolls by industry sector seasonally adjusted

The problem with LIPs like you is you don't know your facts...even though the Internet makes it so easy !

 

[Anathema]

The inflation adjusted minimum wage has been falling for 45 years.

How low is low enough?

The Federal Minimum Wage is illegal so no amount us low enough.

 

[Stephanie]

Liberal/progressive idiotic visions will be our doom

SNIP:
Why LA's $15 Minimum Wage Will Really Be $19.28
24 Comments
BYJED GRAHAM,INVESTOR'S BUSINESS DAILY

05/21/2015 07:02 PM ET




View Enlarged Image

The Los Angeles City Council this week voted to raise the minimum wage to $15 an hour. But the effective cost for employers likely will spike to nearly $20, at least for full-time workers.

Once all the nonwage costs are added, including payroll taxes, paid sick leave and the big one — ObamaCare's employer mandate — minimum compensation for a full-time worker could rise as high as $19.28 an hour by 2020, an IBD analysis finds. That would amount to a jump of $10.67, or 124%, since June 2014.

Seemingly absent from the minimum-wage debate has been the reality that at $15 an hour, many workers will no longer qualify for Medicaid. Even single parents with two children who worked 40 hours a week would earn more than Medicaid's cutoff (if inflation stays at 2%).

In effect, the L.A. City Council is asking employers to lift their low-wage workers to the middle class and give them health insurance.

Here's how L.A. employers will see their cost of a full-time minimum-wage worker rise by $10.67 an hour from June 2014 to 2020.

Wages And Taxes: Including the $1-an-hour increase last July, wages and payroll taxes will rise $7.54 an hour.

Sick Leave: Three days of paid sick leave that take effect in June will add 19 cents to the hourly wage.

ObamaCare mandate: Employers with at least 50 full-time equivalent workers could face an ObamaCare penalty equivalent to $2.94 an hour in wages for each full-time employee who receives a subsidy to buy health coverage via the state exchange.

The per-worker penalty is $3,120 this year, rising to $3,240 in 2016. By 2020, assuming a similar pace, it will top $3,700. Unlike wages, theObamaCare penaltyis not deducted before taxes are paid. On a wage-equivalent basis, the fine could top $6,000 in 2020.

SNIP:
Those pushing for a $15-an-hour minimum wage have cited a host ofresearchto dismiss concerns that it will have a big negative impact on jobs. Yet it's safe to say that none of the research has looked at simultaneously implementing a big wage hike and an insurance mandate.



ALL of it here:

Read More At Investor's Business Daily:Why LA s 15 Minimum Wage Will Really Be 19.28 For Employers - Investors.com
Follow us:@IBDinvestors on Twitter|InvestorsBusinessDaily on Facebook

 

[protectionist]

The inflation adjusted minimum wage has been falling for 45 years.

How low is low enough?

The Federal Minimum Wage is illegal so no amount us low enough.

So you'd approve SLAVERY then ?

 

[2aguy]

God Damn you are dumb sales might have went up but its just a Fucking number, buying power went down, a $1000 dollars put under a mattress in 1986 is only worth around $600 today and artificially raising wages is trickle up poor, people making $8 to $15 dollars won't get a raise

If your pay just went up from $7.25 /hour to $15/hour, you can now buy a car, a boat, nice clothes, a guitar, etc. This year, next year, and the year after that. Have a nice day.

Moron.....if they reduce your hours because they now have to pay you 15, or they let you go because they now have to pay their ice cream scooper 15 dollars an hour and you no longer have a job....then you aren't making any progress at all....especially when they raise the price of the car, boat, clothes and guitar by that same amount so they can now pay their own employees 15 dollars an hour....what don't you lefty dipstick get about artificially raising wages......

 

[2aguy]

The inflation adjusted minimum wage has been falling for 45 years.

How low is low enough?

The Federal Minimum Wage is illegal so no amount us low enough.

So you'd approve SLAVERY then ?

No...slavery was a practice by primitive democrats who believe that the labor of others should be free for them...oh...wait....modern democrats believe that too...........

 

[Darkwind]

God Damn you are dumb sales might have went up but its just a Fucking number, buying power went down, a $1000 dollars put under a mattress in 1986 is only worth around $600 today and artificially raising wages is trickle up poor, people making $8 to $15 dollars won't get a raise

If your pay just went up from $7.25 /hour to $15/hour, you can now buy a car, a boat, nice clothes, a guitar, etc. This year, next year, and the year after that. Have a nice day.

What?

You didn't actually mean that, right? Is My sarcasm meter broken?

 

[protectionist]

xxxxxxx

 

[Anathema]

So you'd approve SLAVERY then ?

Not relative to employees of a business..... but I do say that the MARKET should be determining what a job is worth nit the Federal Government.

 

[2aguy]

God Damn you are dumb sales might have went up but its just a Fucking number, buying power went down, a $1000 dollars put under a mattress in 1986 is only worth around $600 today and artificially raising wages is trickle up poor, people making $8 to $15 dollars won't get a raise

If your pay just went up from $7.25 /hour to $15/hour, you can now buy a car, a boat, nice clothes, a guitar, etc. This year, next year, and the year after that. Have a nice day.

You really have no clue how money is made in a business..do you.....?

 

[2aguy]

God Damn you are dumb sales might have went up but its just a Fucking number, buying power went down, a $1000 dollars put under a mattress in 1986 is only worth around $600 today and artificially raising wages is trickle up poor, people making $8 to $15 dollars won't get a raise

If your pay just went up from $7.25 /hour to $15/hour, you can now buy a car, a boat, nice clothes, a guitar, etc. This year, next year, and the year after that. Have a nice day.

You really have no clue how money is made in a business..do you.....?

again...why not simply raise the rate to 1,000 dollars an hour...then we can all live in mansions and date supermodels....right?

 

[protectionist]

Liberal/progressive idiotic visions will be our doom

MW raise is not "Liberal/progressive" It is supported by both liberals AND CONSERVATIVES. Read the thread before posting.