Liberals subscribe to magical thinking, believing that free college tuition and free health care to illegals will somehow end up a net win for the public. But reality often intrudes on this magical thinking like a big pimple on the end of your nose, and it is painful and unsightly. In this case, the laws of economics are intruding into the magical thinking of liberal politicians in San Francisco (as if there were any other kind there), and it is a growing problem.
San Francisco has declared that the minimum wage in the city, now being replicated in several other fact-challenged cities, will rise to $15 by 2018, and polls there predict happy, better-paid workers who will finally have a “living wage.” They have also insisted that this will not increase inflation and that it will be a boon to the minimum wage worker. That is a lie. And the impact is just now showing up as the first mandated rise from $10.74 to $12.25 is being implemented by certain retailers.
See who is raising prices in San Francisco, page 2:
So a company with a few score people, eaching making a few million, the ceo, cio, cfo, their vices, presidents, vice presidents (plural marketing, hr, accounting, technology, public relations, advertising, internal legal, outside legal, senior vps (one of each of previous list plus more because there is no end to the number of departments made) executive vps ( one of each of the previous list), associate vps( one of each of the previous list) ect ect), all drawing no less a million a year with company cars, expense accounts, staff by the dozens with computers to run formulas they were taught in first year accounting, marketing and management. If any of these quits, no matter how long they worked, they get a beautiful severance package bigger than what most of us make in a lifetime. Even if they get fired, big severance package. Every year they get large raises regardless of performance. Perks package including stock, company cars, health plans us peasants will never see (you dont think they pay for their own hahahahaha, thats a good one), expense accounts, most companies have a corporate jet or two or three or four. Did i leave anything out? Did i forget anything? All that and more for a group of frat boys who had connections from college or their daddies did. Dont get me wrong, if you start a business and struggle and build it, yes keep your money you earned it ( once taxes are paid….but these clowns keep their money overseas to avoid taxes) however…..who is the struggling owner of burger king? He must be awfully old by now, who is the struggling owner of walmart, he must be really old too. Can we cut the b******t here fellas? These companies in the end spend just as much on the top executives as they do on the bottom line workers. If automating is happening they literally cut all the inefficiancies out. Everything to make it run better is done. And making a business run more cost efficient is executive level. So what are they getting paid for?
Economics 101
Just what chipotle needs . More bad press. Maybe a video could be made where we take apart a chipotle burrito piece by piece and price it out. Plenty of profit in the current model.
Great post !!
Raising the wage of the dumbed down generation will not raise anything, they still do not understanding the gotta pay bills logic.
I’m not a doctor but I’m not a fast food worker that thinks they should make 15 a hour, what a joke, go get a education and get a real job.
Chris long I guess you work fast food huh.
Brian Cassidy , was it like that in the 50s and 60s….Nope, CEOs were rich and the middle clss strong…..It started going downhill with the Reagan administration….peace
Revisionism. Fail.
Don’t forget to include the labor costs.