Johnny O
Well-Known Member
Caymen said:
Werd.
Minimum wage to rise this week
- Thread starter Jeff C
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Werd.
Josh Langel
Well-Known Member
TJR said:
Right, but if wages go up, should the price? ...and if so, who ultimately pays the price? The consumer, right? What has been accomplished?
Pretty sad when the employee of a burger joint has to work an hour just to afford the hamburger he or she makes.:huh:
Right, but if wages go up, should the price? ...and if so, who ultimately pays the price? The consumer, right? What has been accomplished?
Pretty sad when the employee of a burger joint has to work an hour just to afford the hamburger he or she makes.:huh:
The price will go up before the wages go up. That is inflation. The value of our money is less therefore it takes more of it to buy something. Since the value of our money is worth less, we need to get paid more of it to be able to buy anything.
It has been 10 years since the minimum wage has been raised, McDonalds and Burger King have raised their prices many times since then. Remember Arby's had the 5 for $5.00 deal. Even before a raise in the minimum wage, 5 for $5.00 was dropped due to raising costs.
You can not blame that on the minimum wage.
Tom
It has been 10 years since the minimum wage has been raised, McDonalds and Burger King have raised their prices many times since then. Remember Arby's had the 5 for $5.00 deal. Even before a raise in the minimum wage, 5 for $5.00 was dropped due to raising costs.
You can not blame that on the minimum wage.
Tom
Thomas Rogers
Well-Known Member
Caymen, we agree on that. There should be no one crying for BK, McDonald's or Wendy's because they have to pay a few more cents an hour to starting employees. I really don't see them raising their prices in response...at least no more than they have raised them throughout the years.
TJR
TJR
Doctor CAD
Well-Known Member
I am not saying that nobody should ever get a raise. My point was that "forced" entry level wages only keep up with what entry-level wage earners buy.
What good is a dollar an hour wage increase if the cost of living for that earner goes up a dollar an hour?
What good is a dollar an hour wage increase if the cost of living for that earner goes up a dollar an hour?
Thomas Rogers
Well-Known Member
DoctorCAD asked:
What good is it? A lot of good, for without the dollar increase that earner would worse off in your scenario. By getting the dollar there is at least status quo.
TJR
What good is it? A lot of good, for without the dollar increase that earner would worse off in your scenario. By getting the dollar there is at least status quo.
TJR
Ryan Schaecher
Well-Known Member
A goberment-mandated "minimum" wage is similar in many ways to a tax... that is artificial inflation. If Burger King was makeing 25% profit on a hamburger at $5.15/hr, now they have to pay $5.85 an hour, they are still going to command a 25% profit... that means that the price of the burger has just gone up overnight:
An example (not based on actual costs, just what I can figure from my time in food service):
July 21 - Cost of a Whopper: $2.39
July 21 - Direct In-Store Labor Cost to make that Whopper: $.43 ($5.15 an hour, taking 5 minutes to make)
July 21 - Net Income In-Store: $1.96
July 21 - 25% Profit: $.49
July 24 - Cost of a Whopper: $2.39
July 24 - Direct In-Store Labor Cost to make that Whopper: $.49 ($5.85 an hour, taking 5 minutes to make)
July 24 - Net Income In-Store: $1.90
July 24 - 25% Profit: $.475
When you look at how many Whoppers BK sells everyday, $.015 per hamburger quickly adds up (some places more than 8,000 a day - equals $120 a day just on Whoppers and just in Direct labor....).
Expect to see a 13% increase in costs with any company that deals strictly in minimum wage jobs.
Not in my town... 5 or $5 is still alive and kickin.... probably going to have a taste of it tonight! Mmmmm.... Arby's Melt <drool>....
A "minimum" wage was NEVER designed to be a "Living Wage" it was designed to be just what it is... a price floor for hourly pay. It was never to have been the level at which someone could support a family off of. If you are trying to support a family on minimum wage for an extended period of time (there are lots of people that have to take a minimum wage job inbetween career moves) you have made some bad decisions. There are plenty of jobs out there that pay significantly more than minimum that people are hiring for.
I personally am proud to say that I have only worked (1) minimum wage job in my life (that was more than being a camp counselor) and that was for a total of 2 weeks.... Steak and Shake sucks. I have been worked for (10) different companies in 12 years (some were at the same time) and only (1) has been minimum. The jobs are there that pay more.
10 years ago you could get a Big Mac meal for under 3 bucks ($2.99) now that same meal is over $4.00 getting close to $5.00 (IIRC around $4.59)
The minimum wage has not gone up it 10 years.
It is a lame excuse to blame it on the minimum wage. Sorry. That is Bullsh!t.
Tom
The minimum wage has not gone up it 10 years.
It is a lame excuse to blame it on the minimum wage. Sorry. That is Bullsh!t.
Tom
Gavin Allan
Well-Known Member
The government ALWAYS gets a raise with the price goes up!
Taxes just keep rising automatically on that Whopper...
Keep on paying-- the government appreciates the extra money!
Taxes just keep rising automatically on that Whopper...
Keep on paying-- the government appreciates the extra money!
WXMotorSports DecalsPartsAccs
Well-Known Member
Ok, now the next 30 post can talk about Wendy's...or Taco Bell. :lol:
Nelson Atwell
Well-Known Member
I doubt there are many people making minimum wage these days. The cashiers at 7-11 used to make minimum wage back when I was a manager back in the 1980s. Now, at least in OKC, they START at $10/hour with benefits after a 90-day probation period. Companies have learned if you want decent employees you need to pay decent wages.
I see very little impact in this law. Perhaps my brother will disagree though, since he owns 9 KFC restaurants and I believe his new hires do make minimum wage for a few weeks during their probationary period.
I see very little impact in this law. Perhaps my brother will disagree though, since he owns 9 KFC restaurants and I believe his new hires do make minimum wage for a few weeks during their probationary period.
I just remembered the 5 for 5 I was speaking of anf the 5 for 5 you are talking about are two totally different things.
The one I am talking about was the 5 regular Roast beef sands for 5 bucks, not the pick 5 items from the list for 5 bucks, like it is today.
Big difference.
A few years back, BK had 2 for $2 bucks. Soon it became 2 for $2.22. I know it has changed since then. It is no longer 2 for $2.22.
That was all while the Minimum wage never changed.
Tom
Ryan Schaecher
Well-Known Member
I also remember the $.59/$.69/$.99 at Taco Bell.... good luck find that anymore. But I also remember it was about the same time I was paying $.79-$1.01/gallon or so.
If you want a minimum wage, fine. It affects less than 3% of the hourly work force. Instead of having a mandatory raise of $.70 an hour, make it increase the cost of inflation from the previous year. That is if last year the minimum wage was $5.15, and inflation for the year was 4%, this year's minimum wage is $5.36/hour. If inflation this year is 5%, next years minimum wage would be $5.62/hour.
Course, if that had been implemented in 1997 when the last minimum wage increase was, the current wage would be:
$6.61/hour
There would be zero political bickering about it. Employers wouldn't have instantly add 14% to their payrolls. Workers would be happier getting their raises ever year. Economists (like myself) would still see the problems that the minimum wage brings. The social experimentalists would be pissed because they loose a tool that they can leverage the whole Rich vs Poor issue with. Course, who's to say what kind of effect this policy would have on inflation as a whole anyway.
Law of unintended consequences....
If you want a minimum wage, fine. It affects less than 3% of the hourly work force. Instead of having a mandatory raise of $.70 an hour, make it increase the cost of inflation from the previous year. That is if last year the minimum wage was $5.15, and inflation for the year was 4%, this year's minimum wage is $5.36/hour. If inflation this year is 5%, next years minimum wage would be $5.62/hour.
Course, if that had been implemented in 1997 when the last minimum wage increase was, the current wage would be:
$6.61/hour
There would be zero political bickering about it. Employers wouldn't have instantly add 14% to their payrolls. Workers would be happier getting their raises ever year. Economists (like myself) would still see the problems that the minimum wage brings. The social experimentalists would be pissed because they loose a tool that they can leverage the whole Rich vs Poor issue with. Course, who's to say what kind of effect this policy would have on inflation as a whole anyway.
Law of unintended consequences....
R Shek,
I completely agree with that idea. As inflation goes up, let minimum wage go the same way. That is only the fair way to do it.
It is the same with gas prices. If gas went up a dime a year over the last 16 years I have been driving, gas prices would be what they are at right now and nobody would be crying.
Tom
p.s. Taco Bell was $0.59/$0.79/$0.99 Now the prices have doubled in some instances, but the minimum wage hasn't.
I completely agree with that idea. As inflation goes up, let minimum wage go the same way. That is only the fair way to do it.
It is the same with gas prices. If gas went up a dime a year over the last 16 years I have been driving, gas prices would be what they are at right now and nobody would be crying.
Tom
p.s. Taco Bell was $0.59/$0.79/$0.99 Now the prices have doubled in some instances, but the minimum wage hasn't.
