Minimum wage increases, jobs decrease

[danielpalos]

the right never recognizes natural rights, unless there are plenty of guns involved.

You mean natural rights?

see what i mean. you must be on the right.

Yep....thus my belief and full support of natural rights....

"on who's side?" We have a federal Constitution. Fascists make up their own rules.

Surly not the left wing fascist side....

what about the federal doctrine, side?

 

[Papageorgio]

Anything under 15%

wow! I would love to earn 15% profit day in and day out....!

The corporations I worked for were content with 5%....Walmart is content with 4%... and had been running in the 3.7% range

I am presuming smaller businesses, with lower gross sales is why 15% is not as high as it seems to me...???

You cannot compare a public company with tens of thousands of employees with your average small business.
The average small business has 5 employees and gross revenues of less than 2 million a year.

• Small Business at a Glance
  • The average annual revenue of a small business is $3.6 million.
  • The average annual revenue of a small business with a website is $5.03 million.

bullshit

A small business with less than 10 employees does not have a revenue of 3.6 million and that figure does not take expenses into account

Once again we have the problem of calling businesses with 500 employees "small"
Using that arbitrary 500 employee mark we can call 99% of the 6 million businesse sin this country "small"

Over 80% of small business have 10 or fewer employees

Small Business Annual Sales - How much money do they make?

good capitalists can double minimum wages and become more efficient; and, their labor force may be more able to afford the products they make.

Should there be a Henry Ford Cup for the private sector?

Another "Participation Trophy". Ahhh gooooood.

 

[danielpalos]

wow! I would love to earn 15% profit day in and day out....!

The corporations I worked for were content with 5%....Walmart is content with 4%... and had been running in the 3.7% range

I am presuming smaller businesses, with lower gross sales is why 15% is not as high as it seems to me...???

You cannot compare a public company with tens of thousands of employees with your average small business.
The average small business has 5 employees and gross revenues of less than 2 million a year.

• Small Business at a Glance
  • The average annual revenue of a small business is $3.6 million.
  • The average annual revenue of a small business with a website is $5.03 million.

bullshit

A small business with less than 10 employees does not have a revenue of 3.6 million and that figure does not take expenses into account

Once again we have the problem of calling businesses with 500 employees "small"
Using that arbitrary 500 employee mark we can call 99% of the 6 million businesse sin this country "small"

Over 80% of small business have 10 or fewer employees

Small Business Annual Sales - How much money do they make?

good capitalists can double minimum wages and become more efficient; and, their labor force may be more able to afford the products they make.

Should there be a Henry Ford Cup for the private sector?

Another "Participation Trophy". Ahhh gooooood.

Only if they can double wages and increase efficiency.

 

[NYcarbineer]

The minimum hasn't been increasing, it's been falling for 45 years.

 

[Weatherman2020]

Who woulda thunk?

 

[Weatherman2020]

 

[Anathema]

What we need more then the minimum wage is some sort of law to limit the percentage that they can take of this profit and instead aim the resources back to the workers.

So instead of killing jobs,you just want to make sure you kill all interest in starting a business to begin with.

 

[Papageorgio]

You cannot compare a public company with tens of thousands of employees with your average small business.
The average small business has 5 employees and gross revenues of less than 2 million a year.

• Small Business at a Glance
  • The average annual revenue of a small business is $3.6 million.
  • The average annual revenue of a small business with a website is $5.03 million.

bullshit

A small business with less than 10 employees does not have a revenue of 3.6 million and that figure does not take expenses into account

Once again we have the problem of calling businesses with 500 employees "small"
Using that arbitrary 500 employee mark we can call 99% of the 6 million businesse sin this country "small"

Over 80% of small business have 10 or fewer employees

Small Business Annual Sales - How much money do they make?

good capitalists can double minimum wages and become more efficient; and, their labor force may be more able to afford the products they make.

Should there be a Henry Ford Cup for the private sector?

Another "Participation Trophy". Ahhh gooooood.

Only if they can double wages and increase efficiency.

Not sure if they can or not, I am not privy to their Profit and Loss Statements or other financials. I know when I owned businesses labor was a very large expense. My businesses paid over minimum wage, because my businesses required a skill level, not like many gas stations and fast food restaurants.

But I do like the Participation Trophy idea you thought up. Set up the qualifications for such a trophy, that will surely give all small business owners something to attain. LOL!

 

[danielpalos]

The minimum hasn't been increasing, it's been falling for 45 years.

correcting for capitalism's, natural rate of unemployment can have an upward pressure on wages.

 

[usmbguest5318]

Only because the ceo and board take the majority of the profit and leave very little for anything else(workers). What we need more then the minimum wage is some sort of law to limit the percentage that they can take of this profit and instead aim the resources back to the workers.

You do know that the vast majority of businesses don't have boards and CEOs and that they run on pretty low profit margins don't you?

No, of course you don't because you have never run a business

Give us a figure. What do you consider a low net profit margin?

Anything under 15%

wow! I would love to earn 15% profit day in and day out....!

The corporations I worked for were content with 5%....Walmart is content with 4%... and had been running in the 3.7% range

I am presuming smaller businesses, with lower gross sales is why 15% is not as high as it seems to me...???

WallMart is clearly a volume business.

Other, smaller niches have something that creates discontinuity and allows for a higher profit margin. Those don't tend to be large volume entities.

It's not clear to me whether you are referring to the disaggregation of the industry demand curve or whether you just stumbled across a bit of jargon. My uncertainty derives from on one hand seeing the jargon and on the other seeing that statement about volume presented without context that clearly disambiguates it with regard to the fact that every firm is a volume business and the volume at which they all try to sell is that which maximizes profit.

 

[Winston]

What we need more then the minimum wage is some sort of law to limit the percentage that they can take of this profit and instead aim the resources back to the workers.

So instead of killing jobs,you just want to make sure you kill all interest in starting a business to begin with.

We don't need a law to do what Matthew has proposed. We just need to increase taxes.

That is what the conservative sheeple don't understand. Businesses never did pay taxes on the money they put back in to their businesses. They only pay taxes when they take money out. When we cut taxes we increase the value of the money coming out while at the same time discounting the value of the money going in. It is why the WACC increases as marginal tax rates decline. It is what all the accounting rules say. And quite honestly, it is exactly what the facts on the ground are screaming.

Regardless of all the wailing about the corporate tax rate, the effective corporate tax rate is dismal. Today, corporations don't even pay half of the percentage of total taxes they did during the hayday of manufacturing Happy Days 50's. And the income tax rate at the top--well it's about half of what it was too.

Come on. It is one thing to screw over employees, scrap the training programs, and gut the investment department if you get to keep fifty cents on the dollar. Quite another when you get to keep all but twenty. And it is one thing to borrow money for a capital investment when you have to pay fifty percent on the dollar back, quite another when you have to pay eighty--the interest rate becomes almost unimportant at the higher marginal tax rates. When marginal tax rates are low, the banks have to damn near give the money away. Look around.

 

[danielpalos]

• Small Business at a Glance
  • The average annual revenue of a small business is $3.6 million.
  • The average annual revenue of a small business with a website is $5.03 million.

bullshit

A small business with less than 10 employees does not have a revenue of 3.6 million and that figure does not take expenses into account

Once again we have the problem of calling businesses with 500 employees "small"
Using that arbitrary 500 employee mark we can call 99% of the 6 million businesse sin this country "small"

Over 80% of small business have 10 or fewer employees

Small Business Annual Sales - How much money do they make?

good capitalists can double minimum wages and become more efficient; and, their labor force may be more able to afford the products they make.

Should there be a Henry Ford Cup for the private sector?

Another "Participation Trophy". Ahhh gooooood.

Only if they can double wages and increase efficiency.

Not sure if they can or not, I am not privy to their Profit and Loss Statements or other financials. I know when I owned businesses labor was a very large expense. My businesses paid over minimum wage, because my businesses required a skill level, not like many gas stations and fast food restaurants.

But I do like the Participation Trophy idea you thought up. Set up the qualifications for such a trophy, that will surely give all small business owners something to attain. LOL!

Good capitalists can make like Henry Ford!

 

[usmbguest5318]

You cannot compare a public company with tens of thousands of employees with your average small business.
The average small business has 5 employees and gross revenues of less than 2 million a year.

• Small Business at a Glance
  • The average annual revenue of a small business is $3.6 million.
  • The average annual revenue of a small business with a website is $5.03 million.

bullshit

A small business with less than 10 employees does not have a revenue of 3.6 million and that figure does not take expenses into account

Once again we have the problem of calling businesses with 500 employees "small"
Using that arbitrary 500 employee mark we can call 99% of the 6 million businesse sin this country "small"

Over 80% of small business have 10 or fewer employees

Small Business Annual Sales - How much money do they make?

good capitalists can double minimum wages and become more efficient; and, their labor force may be more able to afford the products they make.

Should there be a Henry Ford Cup for the private sector?

Maybe....

And I agree with you.

Somehow, the left does not understand that legistlating that kind of thing only creates and entitlement class.

why do you say that?

besides, moving the goal posts is a function of Government.

Well, wait a minute. Whether it is or isn't is the very heart of the politics of the matter. The economics of the matter are quite simple: the floor is either above the equilibrium price of the thing demanded, in this case, a given genre of labor and the floor is effective, or it's not and the floor is ineffective.

 

[Winston]

You do know that the vast majority of businesses don't have boards and CEOs and that they run on pretty low profit margins don't you?

No, of course you don't because you have never run a business

Give us a figure. What do you consider a low net profit margin?

Anything under 15%

wow! I would love to earn 15% profit day in and day out....!

The corporations I worked for were content with 5%....Walmart is content with 4%... and had been running in the 3.7% range

I am presuming smaller businesses, with lower gross sales is why 15% is not as high as it seems to me...???

WallMart is clearly a volume business.

Other, smaller niches have something that creates discontinuity and allows for a higher profit margin. Those don't tend to be large volume entities.

It's not clear to me whether you are referring to the disaggregation of the industry demand curve or whether you just stumbled across a bit of jargon. My uncertainty derives from on one hand seeing the jargon and on the other seeing that statement about volume presented without context that clearly disambiguates it with regard to the fact that every firm is a volume business and the volume at which they all try to sell is that which maximizes profit.

Wrong. Public firms do not seek to maximize profits. They seek to maximize market capitalization. In other words, it is not what they make today. It is what the market THINKS they are going to make tomorrow that is important. And this reality is at the core of our economic problems. Slowly, ever so slowly, academia is beginning to awake to this critical problem.

 

[Winston]

• Small Business at a Glance
  • The average annual revenue of a small business is $3.6 million.
  • The average annual revenue of a small business with a website is $5.03 million.

bullshit

A small business with less than 10 employees does not have a revenue of 3.6 million and that figure does not take expenses into account

Once again we have the problem of calling businesses with 500 employees "small"
Using that arbitrary 500 employee mark we can call 99% of the 6 million businesse sin this country "small"

Over 80% of small business have 10 or fewer employees

Small Business Annual Sales - How much money do they make?

good capitalists can double minimum wages and become more efficient; and, their labor force may be more able to afford the products they make.

Should there be a Henry Ford Cup for the private sector?

Maybe....

And I agree with you.

Somehow, the left does not understand that legistlating that kind of thing only creates and entitlement class.

why do you say that?

besides, moving the goal posts is a function of Government.

Well, wait a minute. Whether it is or isn't is the very heart of the politics of the matter. The economics of the matter are quite simple: the floor is either above the equilibrium price of the thing demanded, in this case, a given genre of labor and the floor is effective, or it's not and the floor is ineffective.

The current minimum wage is below the equilibrium price of the labor supply market and has become a "floor" in the sense that it is a starting wage and has no bearing whatsoever on the value of the labor produced. You know that labor participation rate the right is always crying about, increase the minimum wage and I promise you the expansion in the labor participation rate will eclipse any increase in unemployment. It is all that excess labor supply just sitting on their ass waiting for the labor price to go up.

 

[Papageorgio]

bullshit

A small business with less than 10 employees does not have a revenue of 3.6 million and that figure does not take expenses into account

Once again we have the problem of calling businesses with 500 employees "small"
Using that arbitrary 500 employee mark we can call 99% of the 6 million businesse sin this country "small"

Over 80% of small business have 10 or fewer employees

Small Business Annual Sales - How much money do they make?

good capitalists can double minimum wages and become more efficient; and, their labor force may be more able to afford the products they make.

Should there be a Henry Ford Cup for the private sector?

Another "Participation Trophy". Ahhh gooooood.

Only if they can double wages and increase efficiency.

Not sure if they can or not, I am not privy to their Profit and Loss Statements or other financials. I know when I owned businesses labor was a very large expense. My businesses paid over minimum wage, because my businesses required a skill level, not like many gas stations and fast food restaurants.

But I do like the Participation Trophy idea you thought up. Set up the qualifications for such a trophy, that will surely give all small business owners something to attain. LOL!

Good capitalists can make like Henry Ford!

That is one opinion, but I wouldn't make that over generalization since every business is different and has its own set of circumstances.

 

[usmbguest5318]

Give us a figure. What do you consider a low net profit margin?

Anything under 15%

wow! I would love to earn 15% profit day in and day out....!

The corporations I worked for were content with 5%....Walmart is content with 4%... and had been running in the 3.7% range

I am presuming smaller businesses, with lower gross sales is why 15% is not as high as it seems to me...???

WallMart is clearly a volume business.

Other, smaller niches have something that creates discontinuity and allows for a higher profit margin. Those don't tend to be large volume entities.

It's not clear to me whether you are referring to the disaggregation of the industry demand curve or whether you just stumbled across a bit of jargon. My uncertainty derives from on one hand seeing the jargon and on the other seeing that statement about volume presented without context that clearly disambiguates it with regard to the fact that every firm is a volume business and the volume at which they all try to sell is that which maximizes profit.

Wrong. Public firms do not seek to maximize profits. They seek to maximize market capitalization. In other words, it is not what they make today. It is what the market THINKS they are going to make tomorrow that is important. And this reality is at the core of our economic problems. Slowly, ever so slowly, academia is beginning to awake to this critical problem.

Please point me to something credible (scholarly) that corroborates your assertion and that gives falsity to the following cycle as applied to public firms:

1. Capitalize a public company
2. Conduct productive operations
3. Sell one's product/service so as to maximize profit
4. The fact of one's effectiveness at maximizing profit attracts investors' interest
5. Speculative investors contribute additional capital
6. Use new capital to grow
7. [return to step 2; "rinse and repeat"]

Once you've done that, please explain to me why you brought up what public firms do in this discussion that focuses on the impact of a minimum wage increase on small businesses, most of which are not public companies. I'm asking because I don't see the contextual relevance.

 

[Dragonlady]

Who woulda thunk?

Your chart implies that Clinton received no votes except in those coloured areas. The bald fact is that Republicans only won the country by the slimmest of margins so people voted for Clinton all across the country. Republicans carried the vote by not by much and to imply that only those tiny portions of the country carry any liberal principles, is at best, misleading, and at worst, and outright attempt to deny liberals exist in America.

 

[Sun Devil 92]

You do know that the vast majority of businesses don't have boards and CEOs and that they run on pretty low profit margins don't you?

No, of course you don't because you have never run a business

Give us a figure. What do you consider a low net profit margin?

Anything under 15%

wow! I would love to earn 15% profit day in and day out....!

The corporations I worked for were content with 5%....Walmart is content with 4%... and had been running in the 3.7% range

I am presuming smaller businesses, with lower gross sales is why 15% is not as high as it seems to me...???

WallMart is clearly a volume business.

Other, smaller niches have something that creates discontinuity and allows for a higher profit margin. Those don't tend to be large volume entities.

It's not clear to me whether you are referring to the disaggregation of the industry demand curve or whether you just stumbled across a bit of jargon. My uncertainty derives from on one hand seeing the jargon and on the other seeing that statement about volume presented without context that clearly disambiguates it with regard to the fact that every firm is a volume business and the volume at which they all try to sell is that which maximizes profit.

Not every firm seeks to .

So I am not sure what you

You do know that the vast majority of businesses don't have boards and CEOs and that they run on pretty low profit margins don't you?

No, of course you don't because you have never run a business

Give us a figure. What do you consider a low net profit margin?

Anything under 15%

wow! I would love to earn 15% profit day in and day out....!

The corporations I worked for were content with 5%....Walmart is content with 4%... and had been running in the 3.7% range

I am presuming smaller businesses, with lower gross sales is why 15% is not as high as it seems to me...???

WallMart is clearly a volume business.

Other, smaller niches have something that creates discontinuity and allows for a higher profit margin. Those don't tend to be large volume entities.

It's not clear to me whether you are referring to the disaggregation of the industry demand curve or whether you just stumbled across a bit of jargon. My uncertainty derives from on one hand seeing the jargon and on the other seeing that statement about volume presented without context that clearly disambiguates it with regard to the fact that every firm is a volume business and the volume at which they all try to sell is that which maximizes profit.

O.K.

What part my statement didn't you understand..in English.

Grocery stores and oil refining companies seem to be more high volume, low margin types of businesses. I suspect Wallmart focuses on that too.

Niche companies that work in areas that are specialized don't seem to want to attract to much attention...otherwise (as economics teaches) competition would start to eye their market and cut into their profits.

I can't say this is universal, but it certainly does seem to fit what I've seen (empirical).

 

[usmbguest5318]

O.K.

What part my statement didn't you understand..in English.

...

TY. I know now what I did not before.