Announcement

Collapse
No announcement yet.

CA to raise minimum wage to $15.00/hr

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Originally posted by Playa View Post
    Will do no good. Cost of goods will rise proportionally. It's amazing how people can't grasp this.
    This is not necessarily true.
    There is an entire field of economics devoted to "pass-through" and elasticity of prices.
    Just because the price of pickles and mayonaise rises 10% does not mean that McDonald's and Burger King and Chic Fil A will increase the price of their sandwiches.
    A 20 piece nugget has been $4.99 for 20 years now.

    I learned a lot working with a team of Econometricians and figuring out the retail cost pass-through for iPhones and various other commonly used electronics.

    Comment


      [QUOTE=texansfan;11228702
      The workers need to band together and demand a minimum wage
      [/QUOTE]

      There is your answer,but right now there's no shortage of people willing to work for the current minimum.They may gripe about it, but they knew what the pay was when they started and they are not being forced to stay there.


      DJ

      Comment


        Originally posted by DJM View Post
        There is your answer,but right now there's no shortage of people willing to work for the current minimum.They may gripe about it, but they knew what the pay was when they started and they are not being forced to stay there.


        DJ


        LoL
        Those workers are voting for politicians like Bernie and HRC that will force the employers to raise the minimum wage and working conditions.
        Not everyone wants to voice their opinion in the street
        Many will voice their opinion in the ballot box

        Comment


          Originally posted by texansfan View Post
          LoL
          Those workers are voting for politicians like Bernie and HRC that will force the employers to raise the minimum wage and working conditions.
          Not everyone wants to voice their opinion in the street
          Many will voice their opinion in the ballot box
          Yep,and when they find themselves replaced with a machine ,what then?
          Cash registers in fast food joints are just pictures of food items.Just turn that machine around and add a slot to put money or a card and poof ....you've been replaced.

          As far as any President forcing anything,well Congress may have something to say about it.

          DJ

          Comment


            Say what you want but in my personal experience raising the minimum wage accomplishes nothing real. When I started working summers and Saturdays the minimum wage was a $1 an hour, when I graduated high school it was $1.60.. but by that time I was making a little more than $6 hr...


            In 1970 a loaf of bread was $0.10, a can of pork & beans was $0.10, round steak was $0.59 lb, hamburger was $0.49 lb... The wife and I could buy a week's groceries for less than $20, my house payment was $49, car payment $35, electric $18, water $9, phone $6, $5 would fill most cars and I made $100 a week bring home.. I was in high cotton..

            Every time there is a raise in the minimum wage, there is an increase in the cost of living within a few months that pretty much wipes any gain out..

            As for pass through of business expense.. many businesses like the company I work for will absorb a small increase in cost, but at some point it becomes a measure of raise prices and lose sales or not raise prices and go broke.
            Last edited by Mike Javi Cooper; 04-06-2016, 11:03 AM.

            Comment




              The McDonald’s earnings report on Tuesday gave a hint at how the fast-food chain really plans to respond to its wage and profit pressure—automate. As many contributors to these pages have warned, forcing businesses to pay people out of proportion to the profits they generate will provide those businesses with a greater incentive to replace employees with machines.

              By the third quarter of next year, McDonald’s plans to introduce new technology in some markets “to make it easier for customers to order and pay for food digitally and to give people the ability to customize their orders,” reports the Journal. Mr. Thompson, the CEO, said Tuesday that customers “want to personalize their meals” and “to enjoy eating in a contemporary, inviting atmosphere. And they want choices in how they order, choices in what they order and how they’re served.”

              Comment


                Originally posted by Mike Javi Cooper View Post
                As for pass through of business expense.. many businesses like the company I work for will absorb a small increase in cost, but at some point it becomes a measure of raise prices and lose sales or not raise prices and go broke.

                Only McDonald's knows exactly what they spend on under $15/hr labor and what their point of inflection is before they begin to pass those extra labor costs on to the public

                I don't think McDonald's labor costs are such a big portion of their operating expenses. I think I've heard around 17-20%

                Comment


                  Originally posted by texansfan View Post
                  Only McDonald's knows exactly what they spend on under $15/hr labor and what their point of inflection is before they begin to pass those extra labor costs on to the public

                  I don't think McDonald's labor costs are such a big portion of their operating expenses. I think I've heard around 17-20%
                  Then doubling the wage would double the cost 34% 40% I'm betting that would pucker somebody's panties.

                  Comment


                    Here is an interesting article that presents what I believe to be a well thought out position on the increase.

                    Comment


                      anyone mentioned a lot of union contracts are based on minimum wage ?
                      when the MW goes up union labor get a raise. Now you're gonna see the price of goods rise.

                      Comment


                        Originally posted by texansfan View Post
                        This is not necessarily true.
                        There is an entire field of economics devoted to "pass-through" and elasticity of prices.
                        Just because the price of pickles and mayonaise rises 10% does not mean that McDonald's and Burger King and Chic Fil A will increase the price of their sandwiches.
                        A 20 piece nugget has been $4.99 for 20 years now.

                        I learned a lot working with a team of Econometricians and figuring out the retail cost pass-through for iPhones and various other commonly used electronics.
                        I took several econometrics classes in school. It's tough stuff. There is a lot more to "economics" than most here think. I really enjoyed econ, statistics, and econometrics classes. It starts off as common sense, but can get very complicated given all the layers of our society and government.

                        I don't know the right answer.

                        Comment

                        Working...
                        X