Yes. Disprove how the minimum wage of $1.60 in 1968 has the buying power of $11.79 in 2018
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- Thread starter Chevy1
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Yes. Disprove how the minimum wage of $1.60 in 1968 has the buying power of $11.79 in 2018
Do you even know what you're arguing? You're proving MY point, not yours. As minimum wage has increased, spending power has decreased.
McDonald's and its franchises likely employ 300,000 people in the United States. McDonald's does not provide an exact number, or separate its own workers from those of its franchises. The Walmart number is easier to calculate. The company puts its U.S. workforce at 1.2 million.
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Greed, do the math.
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Greed, do the math.
No, you don't know what you're talking about. Since 1968 the cost of goods has increased 621%. In the same time period, the minimum wage has increased by 359%. In order to keep pace with inflation, the minimum wage would have to be $11.55.
Of what it costs McDonald's franchises when the min wage is raised as compared to you.
It would not. The min wage is an artificial wage imposed by the govt on business.
Like I said. You’re guessing. You have no idea.
https://www.restfinance.com/Restaur...13/That-McDonalds-Salary-Study-Gets-It-Wrong/
Since Greed gave no link for his “study”, here is one from an actual industry publication from 2013. It appears to pull the same cost number greedtard used. Of course the operating cost increase for food is much higher today than 2013. (Greed probably doesn’t understand that either).
“the study was a simple one: it looked at the percentage that McDonald’s as a corporation spends on salaries, about 17.1 percent, and then calculated the prices it would charge if that number was doubled. Thus, if McDonald’s doubled all salaries, all it would have to do is raise prices by 17.1 percent. Thus, the $3.99 Big Mac would cost another 68 cents.
That is completely wrong.”
(In other words...Greed has no idea what he is talking about. 6.2%? Completely fabricated)
The average increases on prices would be ~20% or more depending on ownership according to analysts.
Since Greed gave no link for his “study”, here is one from an actual industry publication from 2013. It appears to pull the same cost number greedtard used. Of course the operating cost increase for food is much higher today than 2013. (Greed probably doesn’t understand that either).
“the study was a simple one: it looked at the percentage that McDonald’s as a corporation spends on salaries, about 17.1 percent, and then calculated the prices it would charge if that number was doubled. Thus, if McDonald’s doubled all salaries, all it would have to do is raise prices by 17.1 percent. Thus, the $3.99 Big Mac would cost another 68 cents.
That is completely wrong.”
(In other words...Greed has no idea what he is talking about. 6.2%? Completely fabricated)
The average increases on prices would be ~20% or more depending on ownership according to analysts.
Read what you posted. First the study looked at ALL salaries and doubled them. They're not talking about minimum wage workers ONLY. There are people at McD that already get paid more than the minimum wage, so you don't have to double they're wages. moron.
My source https://www.purdue.edu/newsroom/rel...employees-would-raise-prices-4.3-percent.html
Did you even read your link beyond the title?
“In order to compensate for higher wages, prices would have to increase between 4% and 25% and/or product size would have to be scaled back between 12% and 70%”
These numbers are significantly different than what you were touting (liar???) In other words....you have no idea about your business or any other.
The numbers illustrate the very fact that “purchasing power” would be reduced by dramatic inflationary pressure. The minimum wage guy would be most impacted with these cost increases. Raises for minimum wage don’t occur in a vacuum. More troubling is the fact that this cost increases are a microcosm of what would occur “across the board” in the economy. MCDs has the size and scale to absorb a large % of this kind of fabricated wage increase. (And yet still shows +20% increases in price alone). Smaller businesses would be crushed (along with the minimum wage worker).
Just like your “50 year ago” minimum wage increase claim, the following 70’s decade resulted in ridiculous inflation, unemployment exceeding 9%, and multiple recessions from ‘70-‘75. (Stagflation).
Post your financials so we can see how you came up with your “6%”. Because it’s looking like complete nonsense at this point.
So the manager who makes 35k would get a raise when his burger flippers payrate just doubles? Now whose purchasing power just went down
you have at minimum 2 employees (your claim) which equates to a minimum overall increase in labor burden of ~$34K annually. to keep your bottom line the same, based on your claim of increasing the price of your cabinets by 6.2%, you'd have to be doing over 1/2 million in annual sales. not too shabby for what's referred to as a "failed businessman from out wayne" handcrafting cabinetry.
why so hateful?
Another thing to consider...You try and force powerful corporations like McDonald's to double its labor costs? No problem, they've already shown technology can be used to reduce staffing needs with the kiosks. Also, there are machines now which will cook and assemble food, granted they're clunky and take up too much room, but that's because the demand isn't high enough for companies to push toward improving them.
I do agree that minimum wage is too low and would not be against giving small, incremental increases, but to just double down is like pulling the pin on a grenade.
Oh, that would be Greed...he's the reason your food is now being prepared by the Chefmate 3000.
McDonalds has 1,500,000 employees working in franchises. Let's say only 1,000,000 of them get a $5.00 per hour raise. If all of them only worked 20 hours per week, that's an extra $100,000,000.00 added to their weekly payroll.
There goes the value menu, and in comes the robots.
Thanks Bernie, Greed, and AOC.
There goes the value menu, and in comes the robots.
Thanks Bernie, Greed, and AOC.
You dolt. The 4% is the low end with no insurance and the 25% is the high end with insurance.
It has absolutely nothing to do with annual sales.
$15,000 kitchen
120 total labor hours
120 hours x $7.25/ hour = $870
120 hours x 15.00/hour = $1800
Difference in labor cost = $930
I have to raise the cost of the kitchen by $930
Percentage increase from $15,000 to $15,930 is 6.2% increase.
They're doing that with a $7.25 minimum wage in place.
I haven't stated I think the minimum wage should be doubled overnight. But it has been done before with minimal effect on inflation and unemployment.
Yet you wouldn’t pay your employees $15/hr because you claimed your competitors would have an unfair advantage over you. And YES you did claim that.
Now let me ask you another question. Do you think that raising the middle wage would increase cost of materials/supplies?
And that was when someone asked me why didn't I just increase my wages. If I, alone, increased the wages to $15, rather than an across the industry wage hike, then yeah that's correct. You forgot that part. No, you didn't.
Not much in my business. Others, more so.
You’ve just shown yourself that doubling your labor costs would only increase your overall project cost by about 6%. A high end product like custom cabinets isn’t that much overall. You could have done it you were just cheap and used competition as an excuse. And let’s be honest if you’re paying more you could have lured the competitions cabinet makers to your shop if your product was that good
Let’s face it. The only worker actually making “minimum wage” are new, young, first time workers in the workforce. Someone with no work history is unlikely “supporting a family” on minimum wage.
It’s a high school kid working a first job bagging groceries or mopping a floor in Jimmy Johns. Do they deserve more than current minimum. (Not usually). I would guess that even the MCDs “Out Wayne” pays people with a work history more than minimum wage. (Hell, some of Greeds former staff probably had to find work there after his “semi retirement”.)
You’re assuming your material costs stay the same. Also, you don’t include labor burden when bidding a job?! These omissions/assumptions make your 6.2% increase an extremely low guess. It would probably be double that with additional burden and material costs.
You'd have a point if I only had to compete with other custom shops. The reality is we had to compete with the lower cost of factory cabinet shops as well.
Not exactly. Try and read the entire article again. Hell, that’s a quote I provided from your source. The variance is huge and says nothing about 6% (which was your original claim of “apples to apples”).
The article basically explains that the “low” end estimate % increase was based on the fact “subsidies” for Obumma healthcare were baked into the research and offset the higher cost increases.
What the hell does that matter??? All businesses are the same. “Apples to apples” right?? All businesses operate on the same “ economic principle”....right?? MCDs was the same as your shop...but another cabinetry manufacturer isn’t????
You continue to implode your own assertions from earlier. Just stop embarrassing yourself.
I'm assuming nothing. We have been talking about the difference in direct labor costs between the existing minimum wage of $7.25 and the proposed $15 minimum wage.
It didn't change.
There are no omissions/assumptions, and my 6.2% is not a guess.
"probably". Too specific for me to address.
Burden doesn’t change? I know you don’t offer any retirement or healthcare benefits, but how do your payroll taxes stay the same? Do these hourly minimum wage “employees” get 1099s?
