Impossible
- Thread starter extragreen
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why not make min wage $75 an hour? Or maybe $100?
Now tell us how wage increases puts pressure on inflation? Explain it at the macro and micro level.
Not just the looking though a straw at a burger. If prices go up 12% in many areas then how does that effect the consumer, especially those making lower wages. Add it all up and get back with us.
^^^A MORE PERFECT example of why you should never get strung out on drugs. Why not relieve anyone making over $150,000 from any and all taxes?
You avoided the question. Why not make min wage $35 an hour? 50? 100?
You are an expert on getting strung out on drugs, aren't you pillhead?
All your authoritarian overlords would like it if you worked for the federal minimum wage. That's how much they think of you.
McDonald’s two largest states in its supply chain are Wisconsin ($7.25 minimum wage) and Minnesota ($8.43 minimum wage).
I have always said that a federal minimum wage of $15 would be the cause of hyper inflation. Posting the minimum wage of a few cities or states is meaningless and just shows you have no grasp of macro economics.
Do a little research and look at what’s called the Kaitz Index. It tracks the relationship between minimum wage and median wage. What you will find is that it has been fairly consistent that minimum wage is around 50% of median wage. In the late 70s minimum wage was $2.10 and median wage was $4.40. When the minimum was $6.00 the median was around $12. In 2021 minimum was $7.25 and median was $17.00, so you could argue for an $8.50 minimum.
Given this economic history, an increase to minimum to $15 implies median income would have to climb to $30-$32/hr to meet historic equilibrium. People who are working lower skilled jobs making $14/hr aren’t going to be happy making the same as a burger flipper. So to keep them you will need to pay them $18-$19. So then medium skilled positions won’t be happy making low skill wages…
This will raise prices on all goods and services produced meaning the purchasing power of dollars decrease and those minimum wage workers are no better off. They can still only afford the same stuff they could before.
In the 80s a Big Mac meal was $2.69, minimum wage was $3.35.
In the 90s a Big Mac meal was $4.59, minimum wage was $4.75.
In the 2020s a Big Mac meal is $7.89, minimum wage is $7.25.
You see a trend here? Given the above data, what is the expected Big Mac meal price if minimum wage is $15?
This again supports the Kaitz Index and the fact that minimum wage should probably by around $8.50, but not $15.
I have always said that a federal minimum wage of $15 would be the cause of hyper inflation. Posting the minimum wage of a few cities or states is meaningless and just shows you have no grasp of macro economics.
Do a little research and look at what’s called the Kaitz Index. It tracks the relationship between minimum wage and median wage. What you will find is that it has been fairly consistent that minimum wage is around 50% of median wage. In the late 70s minimum wage was $2.10 and median wage was $4.40. When the minimum was $6.00 the median was around $12. In 2021 minimum was $7.25 and median was $17.00, so you could argue for an $8.50 minimum.
Given this economic history, an increase to minimum to $15 implies median income would have to climb to $30-$32/hr to meet historic equilibrium. People who are working lower skilled jobs making $14/hr aren’t going to be happy making the same as a burger flipper. So to keep them you will need to pay them $18-$19. So then medium skilled positions won’t be happy making low skill wages…
This will raise prices on all goods and services produced meaning the purchasing power of dollars decrease and those minimum wage workers are no better off. They can still only afford the same stuff they could before.
In the 80s a Big Mac meal was $2.69, minimum wage was $3.35.
In the 90s a Big Mac meal was $4.59, minimum wage was $4.75.
In the 2020s a Big Mac meal is $7.89, minimum wage is $7.25.
You see a trend here? Given the above data, what is the expected Big Mac meal price if minimum wage is $15?
This again supports the Kaitz Index and the fact that minimum wage should probably by around $8.50, but not $15.
You idiot. The minimum wage in 1968 was $1.60. If it kept up with inflation the minimum wage now would be $14.44.
In 1968 the minimum wage would purchase 3 1/2 burgers.
In 2023 the minimum wage in Dallas would purchase 1 1/4 burgers
At your $8.50 the wage would purchase 1 1/2 burgers.
At $15 per hour you could purchase 2 1/2 burgers in Dallas.
At $15/hr that's a 28% decrease in purchasing power for burgers in Dallas in the last 55 years.
You must be a very successful businessman. How has minimum wage increases helped those who work for minimum wage?
So, then a cheeseburger would be 9 times higher than it is now.
You are so simple minded you don't see the big picture of min wage increases. It has a wave effect throughout. Hello price increases and inflation, our old friend.
You must be a really, really stupid lying idiot. You haven't needed to prove that for quite some time.
How have tax cuts helped the wealthy??
Promotes more investments and creates jobs. Now you. How has minimum wage increases helped those who work for minimum wage?
Earlier in this thread I told you "You're avoiding the point, idiot." My bad, you didn't avoid the point, you didn't understand the point.
I really can’t understand how you can be this dense, it has to be an act. I obviously waste my time trying to help you understand that when minimum wage increases, median wage will increase leading to an established equilibrium and even provide you the scientifically established index to investigate. This broad increase in wages leads to higher prices.
After all that, you wrote a dumb azz post where you assume minimum wage at $15 and then calculate its purchasing power leaving prices at current levels.
Please remember to blink so your eyes don’t dry out.
Impossible: Greed's ability to communicate about economics effectively
He is now admitting that raising the min wage will increase the price of a burger 9 times?? Bahahaha
The real irony of course is that the dude advocating a raise of the minimum wage arbitrarily to ~$15 hour for someone flipping burgers never arbitrarily raised his own hourly labor/wage driven staff when he employed them cutting wood boxes. Of course, it was exactly the opposite. He put an hourly labor/wage driven job on production quotas for "commission" pay instead. Yes, laborers in a woodshop had to produce more in order to meet the owners objectives so they could be paid.
As we later learned, it worked out well for Greed. He was able to "retire", his staff had to find other jobs for income.
He is now admitting that raising the min wage will increase the price of a burger 9 times?? Bahahaha
The real irony of course is that the dude advocating a raise of the minimum wage arbitrarily to ~$15 hour for someone flipping burgers never arbitrarily raised his own hourly labor/wage driven staff when he employed them cutting wood boxes. Of course, it was exactly the opposite. He put an hourly labor/wage driven job on production quotas for "commission" pay instead. Yes, laborers in a woodshop had to produce more in order to meet the owners objectives so they could be paid.
As we later learned, it worked out well for Greed. He was able to "retire", his staff had to find other jobs for income.
No, we need facts, not fantasy.
Obama created more jobs in his last 3 years than trump did in his first 3 years.
Real private investment increased at a higher rate in Obama's last 3 years compared to trumps first 3 years.
You don't either. You see min wage increase in a vacuum. You think it just effects one thing or one group of employees and employers.
No, you idiot. I've just proved in the op that a $17.27 minimum wage doesn't create $13 Happy Meals, and that the purchasing power of the minimum wage has gone down.
Dumbass. Government doesn't create jobs except for government jobs. And government jobs cost the taxpayers money. Small businesses create the most jobs. Investments/entrepreneurs create jobs. New money.
Don't be a dumbass.
No, we need facts, not fantasy. You're a lying idiot.
Obama created more jobs in his last 3 years than trump did in his first 3 years.
Real private investment increased at a higher rate in Obama's last 3 years compared to trumps first 3 years.
I missed it, when did the federal minimum wage go to $17.27?
Are you really this stupid, or are you just a committed troll? I don’t know why, but I will give you more free education -
In a typical restaurant, direct labor is about one third of total cost. Another third of cost is food, and the final third is overhead. The wages to the employees of the particular restaurant only impact one third of the cost structure. Increasing the wages for everyone increases 100% of the cost structure. The other thing you ignore is that for a business to stay open it requires a profit margin so that money can be reinvested, like when a fryer or grill dies or the franchiser requires a store remodel. What has the impact been on that Seattle location in terms of the ability to maintain the necessary capital position to fund the business?
So all you have proven is that you have no idea what you’re talking about.
That was the wage in Seattle. The minimum wage for the state is $15.74.
Raising the minimum wage doesn't affect 100% of the cost structure, moron. Much of the food processing establishments already pay more than $15/hr. and the same is true for overhead.
Your drivel is just simple stupidity clothed in hyperbole.
Dumbass....You don't force businesses to pay more, without them making up for it. Call them greedy, but that doesn't change the fact that they find ways to recoup their losses of paying higher wages. Even morons know this. That's why you can't answer this question: How has minimum wage increases helped minimum wage workers? You can't answer because you refuse to admit that they haven't helped and in a lot of cases, they've hurt minimum wage workers. You'll ultimately see soon enough. You keep raising the cost of unskilled workers, it will be cheaper for business owners to turn to AI. If you open your eyes, you're already seeing it happen everywhere. Forced wages for unskilled positions are not a good thing, but you keep in line, little lamb. It's what you bleaters do best.
LINK: Higher minimum wage leads to lower compensation
EXCERPT: For every $1 increase in the minimum wage, we found that the total number of workers scheduled to work each week increased by 27.7%, while the average number of hours each worker worked per week decrease by 20.8%. For an average store in California, these changes translated into four extra workers per week and five fewer hours per worker per week — which meant that the total wage compensation of an average minimum wage worker in a California store actually fell by 13.6%.
This decrease in the average number of hours worked not only reduced total wages, but also impacted eligibility for benefits. We found that for every $1 increase in minimum wage, the percentage of workers working more than 20 hours per week (making them eligible for retirement benefits) decreased by 23.0%, while the percentage of workers with more than 30 hours per week (making them eligible for health care benefits) decreased by 14.9%. This suggests that as minimum wage increases, firms may strategically adjust their scheduling practices to reduce the number of workers eligible for benefits: Our estimates suggest that the average store in our California data set recouped approximately 27.5% of the increase in its wage costs through savings associated with reducing benefits.
In addition to the direct reduction in wage compensation and associated reduction in eligibility for benefits, we also found that increasing minimum wage led to less consistent work schedules, both in terms of the number of hours employees worked from one week to the next, and in terms of the timing of those shifts. A $1 increase in the minimum wage corresponded to a 33.0% increase in fluctuations in the number of hours worked per week, a 9.5% increase in fluctuations in the number of hours worked per day, and 9.8% increase in fluctuations of shift start times. Furthermore, this negative impact on scheduling consistency was generally more severe for workers who had held their jobs for less time, suggesting that newer employees were particularly impacted by these shifts. Research has shown that a lack of schedule consistency can make it significantly harder for hourly workers to coordinate job activities with their personal lives, balance multiple jobs, and ensure long-term financial stability.
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You have to either be one of the dumbest people on here or a committed troll as he said.
