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 $12.25 is being implemented by certain retailers.
See who is raising prices in San Francisco, page 2:
Prices of everything goes up and salaries don’t. Something has to give!!!
But it ok for the ceo to make almost 29 million in 2014? He probably can’t even make a burrito. It’s called social responsibility people. If these people continue to push the working class into a corner the backlash is going to be ugly.
Douglass the reason that BBQ chain is successful is they pay above the minimum wage attracting more people wanting to work there. They essentially get to pick the top of the unskilled labor force. Big minimum wage is increased they have to raise wages or accept lower quality workers.
What I was pointing out was the b.s. billion dollar chain restaurants are claiming about labor cost. I’m not calling for 15$ an hour but at least 10$ an hour. I was using that bbq place to point out that what what McDonald’s, Burger King, KFC, Taco bell claim that if labor cost goes up their food has to go up in price. Which is b.s. in the 1980’s I had a girlfriend that did the book keeping at a McDonald’s near my home. It was all written down by hand still. That location was always busy and was very profitable. She told me they could pay all the minimum wage and low wage workers 2× what they were getting paid and that location would of still been very profitable. It’s called greed nothing more nothing less…….
So the minimum wage is still the minimum wage, so they need another increase so they won’t be making minimum wage. So let’s increase it so they won’t be making minimum wage, well I be damn, they’re still making the minimum wage. They need another raise! What the hell, every time we raise the minimum wage, for some reason, there’s still a minimum wage. This could go on forever, and some poor bastard will still be making minimum wage.
The better you pay people the more loyal they are. They work harder. In the end, less turnover. I know that McDonald’s was a swinging door for employee turnover and that costs business a lot. I know , I built 2 successful businesses over the last 30 years and sold them. They are both still operating. I never paid anyone minimum wage. Always Always 2 dollars over minimum wage I started them at…..I struggled in the beginning and didn’t pay myself much more than my employees were making……..
Here are the economics of a minimum wage. Without it we get paid slave wages and the owners laugh all the way to the bank. From 1995 to 2005 the average profit per employee increased from $38,000 a year to $83,000 a year – enough to give everyone a $20 an hour raise with no loss of profits. For the first two decades of the minimum wage, it tracked inflation and productivity, but has stagnated since 1968. To restore the 1960 minimum wage of $1, we need to increase the minimum wage to $25 an hour, and adjust it every 5 years for inflation and productivity. In 1968 there were 1 million rich people. Today there are 30 million rich people and 15.5 million poor people. With just 2 million fewer rich people we can completely eliminate all poverty. That is what we need to do. And don’t believe a word of their lies about not being able to afford $15 an hour – that is $10 an hour less than what the minimum wage was when it was $1 an hour.
Mark Harrison Only 10% of McDonalds’ restaurants are owned by the corporation. The rest are franchisees who invested their own money to buy and run their own business, and profit margins are thin. You people with so little knowledge really need to learn the facts before making absurd claims.
‘Corporations’ aren’t the companies paying minimum wage, at least in general. It’s thousands of mom and pop stores all over the country, and they simply cannot afford to pay young kids $15 per hour to sweep floors. Aside from that, corporate profits have dropped for 3 straight year, but people like you will never let facts get in the way. http://www.wsj.com/articles/u-s-corporate-profits-on-pace-for-third-straight-decline-1461872242
Yes, and do you really think a mom and pop shop is South Bubblefuk Iowa can afford to pay the same wage as some trendy boutique in San Francisco? This is what all these dummies don’t understand; we have a very diverse economy and there are communities in the US when you can buy a home for less than $100,000. Why should they be expected to follow the same wage path? It’s just plain ignorant.