Help me understand the impact of a $15 minimum wage?

[Anonymous]

^^re: Technology

[Anonymous]

“Two researchers have estimated that a 10% minimum wage increase leads to a 1.4% increase in the price of a Big Mac. On average, Big Macs cost $5.66 in the U.S., according to The Economist’s Big Mac Index.

Because consumers did not significantly cut back on Big Macs as a result of price increases, company-owned locations did not need to lay off employees or shut down entirely, the study found.”
https://on.mktw.net/2YsDSTy?fbclid=IwAR1gPnsZOyvgtVQEP4a4sXmUdiFAm_ISHjdT0d-cVGTXey5z4eZMeGfmREE%2Baem_Ae8cZ89sCoRYOK_z6Zy1nxjHr_8rAm_NJVFLt3YUI95QgkdfTnoG_WCuL70cZe6A2mo1htQVBF83O4CMp119rt76b4Wwzd7U2IQ21geJ_ItnHg

[Anonymous]

I am not worried about the large businesses like Walmart or McDonald's should the minimum wage increase. Many of these large corporations have already increased their minimum wage. And, an increase in their labor costs won't hugely impact their bottom line.

I am more concerned with the smaller businesses that can't afford such an increase. The local shops that employ teens in the summer and after school.

[Anonymous]

Critics of a higher minimum wage cite a number of reasons for their opposition: the effect on youth employment levels, the likelihood that it will increase the costs of products and services, and the chance that it will decrease the number of jobs available. Such concerns align with the data and projections published by the nonpartisan Congressional Budget Office in July 2019. The CBO estimated that while a $15 minimum wage would increase the wages of 17 million workers and reduce the number of people living below the poverty line, it would also eliminate 1.3 million jobs. The CBO’s projections also indicated a $15 minimum wage would reduce business income while causing prices to increase, concluding that “the $15 option would reduce total real (inflation-adjusted) family income in 2025 by $9 billion, or 0.1 percent.”

Given the opposition to a $15 minimum wage among economists and the projections put out by prominent organizations like the CBO, Biden is wrong to claim that “all the economics” indicate raising the minimum wage to $15 would have an overall positive effect on the economy.

[Anonymous]

You guys are focusing on the big companies who can absorb it easily, what about the little guys? Look at someone that owns a Rita’s ice franchise for example. They have 4 employees at $9 an hour currently, for a cost of $36 an hour, or $360 for a 10 hour day. At $15 that’s now $60 an hour or $600 a day. You’ve gone from $2520 a week in labor cost to $4200. This doesn’t count your payroll taxes and UI being a % of the payroll amount (so now that’s higher). How is that guy supposed to make it up? Magically sell 60 more a day? Easiest way is to cut to 3 people and raise prices.

Just to break even, not to make more, to break even. Good luck!

[Anonymous]

Anonymous wrote:You guys are focusing on the big companies who can absorb it easily, what about the little guys? Look at someone that owns a Rita’s ice franchise for example. They have 4 employees at $9 an hour currently, for a cost of $36 an hour, or $360 for a 10 hour day. At $15 that’s now $60 an hour or $600 a day. You’ve gone from $2520 a week in labor cost to $4200. This doesn’t count your payroll taxes and UI being a % of the payroll amount (so now that’s higher). How is that guy supposed to make it up? Magically sell 60 more a day? Easiest way is to cut to 3 people and raise prices.

Just to break even, not to make more, to break even. Good luck!

Yes you’ll have to cut employees and raise prices, or cut management salaries. But if your product is underpriced to begin with because you are exploiting human beings for profit.... well, get a new business model. There are also some incentives that could be structured to benefit small businesses. And, if we cut healthcare costs by providing a public option, and forgive student loans, a lot of mall businesses was owners would benefit.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You guys are focusing on the big companies who can absorb it easily, what about the little guys? Look at someone that owns a Rita’s ice franchise for example. They have 4 employees at $9 an hour currently, for a cost of $36 an hour, or $360 for a 10 hour day. At $15 that’s now $60 an hour or $600 a day. You’ve gone from $2520 a week in labor cost to $4200. This doesn’t count your payroll taxes and UI being a % of the payroll amount (so now that’s higher). How is that guy supposed to make it up? Magically sell 60 more a day? Easiest way is to cut to 3 people and raise prices.

Just to break even, not to make more, to break even. Good luck!

Yes you’ll have to cut employees and raise prices, or cut management salaries. But if your product is underpriced to begin with because you are exploiting human beings for profit.... well, get a new business model. There are also some incentives that could be structured to benefit small businesses. And, if we cut healthcare costs by providing a public option, and forgive student loans, a lot of mall businesses was owners would benefit.

"Exploiting." What a crock of total bull$hit.
So many of these people working for $9.00 an hour are doing so as their first job... to earn a few bucks, but more importantly, to gain experience.
We're not doing a "public option" and transferring student loans to the taxpayers either.
Next up - you all will be insisting on paying off auto loans and mortgages for any poor soul making less than $150,000.
Enough with the fricking hand outs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You guys are focusing on the big companies who can absorb it easily, what about the little guys? Look at someone that owns a Rita’s ice franchise for example. They have 4 employees at $9 an hour currently, for a cost of $36 an hour, or $360 for a 10 hour day. At $15 that’s now $60 an hour or $600 a day. You’ve gone from $2520 a week in labor cost to $4200. This doesn’t count your payroll taxes and UI being a % of the payroll amount (so now that’s higher). How is that guy supposed to make it up? Magically sell 60 more a day? Easiest way is to cut to 3 people and raise prices.

Just to break even, not to make more, to break even. Good luck!

Yes you’ll have to cut employees and raise prices, or cut management salaries. But if your product is underpriced to begin with because you are exploiting human beings for profit.... well, get a new business model. There are also some incentives that could be structured to benefit small businesses. And, if we cut healthcare costs by providing a public option, and forgive student loans, a lot of mall businesses was owners would benefit.

"Exploiting." What a crock of total bull$hit.
So many of these people working for $9.00 an hour are doing so as their first job... to earn a few bucks, but more importantly, to gain experience.
We're not doing a "public option" and transferring student loans to the taxpayers either.
Next up - you all will be insisting on paying off auto loans and mortgages for any poor soul making less than $150,000.
Enough with the fricking hand outs.

Actually no. Most people working minimum wage are not doing it as their first job. They’re trying to live.

[Anonymous]

Internships are for “experience”. Jobs are work, and should be paid based on the actual cost of living for a human being in this economy. There are already programs for low paying summer jobs for teens IIRC.

[Anonymous]

Can you imagine how many good paying small business jobs could be created if college grads could afford healthcare and not be burdened by student debt?

[Anonymous]

Anonymous wrote:

Anonymous wrote:You guys are focusing on the big companies who can absorb it easily, what about the little guys? Look at someone that owns a Rita’s ice franchise for example. They have 4 employees at $9 an hour currently, for a cost of $36 an hour, or $360 for a 10 hour day. At $15 that’s now $60 an hour or $600 a day. You’ve gone from $2520 a week in labor cost to $4200. This doesn’t count your payroll taxes and UI being a % of the payroll amount (so now that’s higher). How is that guy supposed to make it up? Magically sell 60 more a day? Easiest way is to cut to 3 people and raise prices.

Just to break even, not to make more, to break even. Good luck!

Yes you’ll have to cut employees and raise prices, or cut management salaries. But if your product is underpriced to begin with because you are exploiting human beings for profit.... well, get a new business model. There are also some incentives that could be structured to benefit small businesses. And, if we cut healthcare costs by providing a public option, and forgive student loans, a lot of mall businesses was owners would benefit.

So if a Italian ice is underpriced at $3, what should it be?

[Anonymous]

Anonymous wrote:Internships are for “experience”. Jobs are work, and should be paid based on the actual cost of living for a human being in this economy. There are already programs for low paying summer jobs for teens IIRC.

Why would those teens take those jobs if they can just go make $15 somewhere else?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Internships are for “experience”. Jobs are work, and should be paid based on the actual cost of living for a human being in this economy. There are already programs for low paying summer jobs for teens IIRC.

Why would those teens take those jobs if they can just go make $15 somewhere else?

They won’t be able to get those jobs, too ma y other qualified people would be competing with them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You guys are focusing on the big companies who can absorb it easily, what about the little guys? Look at someone that owns a Rita’s ice franchise for example. They have 4 employees at $9 an hour currently, for a cost of $36 an hour, or $360 for a 10 hour day. At $15 that’s now $60 an hour or $600 a day. You’ve gone from $2520 a week in labor cost to $4200. This doesn’t count your payroll taxes and UI being a % of the payroll amount (so now that’s higher). How is that guy supposed to make it up? Magically sell 60 more a day? Easiest way is to cut to 3 people and raise prices.

Just to break even, not to make more, to break even. Good luck!

Yes you’ll have to cut employees and raise prices, or cut management salaries. But if your product is underpriced to begin with because you are exploiting human beings for profit.... well, get a new business model. There are also some incentives that could be structured to benefit small businesses. And, if we cut healthcare costs by providing a public option, and forgive student loans, a lot of mall businesses was owners would benefit.

So if a Italian ice is underpriced at $3, what should it be?

Oh I don’t know $5 or $6? Come on. The average customer for Rita’s can afford that and wouldn’t even notice. A family of four getting anything for 20 bucks is a steal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You guys are focusing on the big companies who can absorb it easily, what about the little guys? Look at someone that owns a Rita’s ice franchise for example. They have 4 employees at $9 an hour currently, for a cost of $36 an hour, or $360 for a 10 hour day. At $15 that’s now $60 an hour or $600 a day. You’ve gone from $2520 a week in labor cost to $4200. This doesn’t count your payroll taxes and UI being a % of the payroll amount (so now that’s higher). How is that guy supposed to make it up? Magically sell 60 more a day? Easiest way is to cut to 3 people and raise prices.

Just to break even, not to make more, to break even. Good luck!

Yes you’ll have to cut employees and raise prices, or cut management salaries. But if your product is underpriced to begin with because you are exploiting human beings for profit.... well, get a new business model. There are also some incentives that could be structured to benefit small businesses. And, if we cut healthcare costs by providing a public option, and forgive student loans, a lot of mall businesses was owners would benefit.

"Exploiting." What a crock of total bull$hit.
So many of these people working for $9.00 an hour are doing so as their first job... to earn a few bucks, but more importantly, to gain experience.
We're not doing a "public option" and transferring student loans to the taxpayers either.
Next up - you all will be insisting on paying off auto loans and mortgages for any poor soul making less than $150,000.
Enough with the fricking hand outs.

Actually no. Most people working minimum wage are not doing it as their first job. They’re trying to live.

Not according to these statistics from 2019.
https://www.bls.gov/opub/reports/minimum-wage/2019/home.htm