For clarification, are the workers in this article "leeches" as well?
that all you got? There was one guy at a tech company that decided to pay all his employees 70k because he read somewhere that's what makes people happy. His senior people quit because new people were getting paid what they had worked their rear ends off for and productivity plummeted.
It's funny how when you depict how liberal policies will actually work some people take offense.
Sounds like the shop had no idea what they were doing if they raised the prices that much. Or they were overcharging for pizza to begin with. Not even with a $15 minimum wage would pizza be $30.00. Also sounds like he's paying some of his workers $25.00/hour. Which is a lot more than $15.00.
Conservatives of course will never agree with a raise in the minimum wage. At least not until everyone's on Welfare checks from the government because nobody can live on the minimum wage we have.
15 an hour is just the beginning, you have to remember that as the employer he has another 7% that he has to match for FICA then you have unemployment insurance that goes up, as well as workmans comp etc. etc. etc. The cost of paying a w-2 employee 15 an hour is way more than 15 an hour. on top of that he included gratuity in the cost of the Pizza.
More importantly, artificially raising a wage without a corresponding increase in productivity, efficiency, or more customers coming through the door in the case of a sales person leads to distortions in the price. We can quibble over how much but the fact remains.
The greater question, and the one i have asked in other threads and i will ask again, with the billions of dollars that we spend on education in this country why do we as a society accept it as inevitable that there will be men with families who only have the skills to flip a pizza?
Quote:that all you got? There was one guy at a tech company that decided to pay all his employees 70k because he read somewhere that's what makes people happy. His senior people quit because new people were getting paid what they had worked their rear ends off for and productivity plummeted.
It's funny how when you depict how liberal policies will actually work some people take offense.
CEO Who Raised Minimum Salary To $70k Falls On Hard Times
Just three months ago, Dan Price was a progressive hero. To much fanfare, Price, CEO of Seattle-based Gravity Payments, announced he was raising the minimum salary for employees of his company to $70,000, and taking a $930,000 pay cut himself to help pay for his new minimum wage. Three months later, the experiment does not go well.
http://dailycaller.com/2015/08/02/ceo-wh...ard-times/
I think the term market forces gets people confused. I like to just use the term REALITY!
Quote:
It's funny how when you depict how liberal policies will actually work some people take offense.
That's the problem with those "policies."
They only work in "depictions" (fantasy.)
They've proven over and over again to fail in real life.
Next time's a charm, right?
Wrong.
Again.
There is no doubt that increasing wages will result in price increases if corporate and business profit margins are otherwise maintained at current levels. However, many economic studies have shown the the magnitude of expected price increase can be quantitatively determined and are anticipated to be far less than claimed by detractors of minimum wage increases.
The level of price increases necessary in any industrial sectors necessary to maintain existing profit margins are a function of the total labor component of a product’s or service’s final price times the average wage increases that would result from an increase in the minimum wage to $15 per hour.
There's far more to this. It's not a Carte Blanche, one size fits all, effect on every business. It will affect many differently. If, for instance, WalMart paid $15 an hour, it would cost the average shopper less than a dollar, something like .47 last research I did, per shopping trip AND the 4 Walton's would still remain in the top 10 of richest people.
Of course a small restaurant would have problems, but I've read where the no tipping practice helped retain customers.
Bring back decent paying jobs, reduce " free" trade.....( even all you Donald lovers obviously know he himself is against it) and lets look out for 'Murika first. Good luck with that with the new what's in it for me attitude.
IMO...this wouldn't be an issue if there were good paying jobs to be had. Many of these minimum wage workers are NOT high schoolers or the uneducated. They're there because they have little choice. Our free trade agreements have benefited the few and hurt the many.
The wage gaps that are widening so quickly that the end result will be a plutocracy or revolt.
I do not think people should be paid more than their skill level, however, creating a caste system and not having an opportunity to at least achieve the " dream" is fading away.
As far as say, Mickey Ds? Wages there have been relatively stagnant. Has the price of a Big Mac ? So to now say prices are rising due to wage increases is a fallacy, and naive. Of course it's part of it, but inflation certainly hasn't met wages...for years. Even the naysers here would agree their Chinese made Don't tread on me flag costs more now than a few years ago... Musta been the wages.
Quote:There is no doubt that increasing wages will result in price increases if corporate and business profit margins are otherwise maintained at current levels. However, many economic studies have shown the the magnitude of expected price increase can be quantitatively determined and are anticipated to be far less than claimed by detractors of minimum wage increases.
The level of price increases necessary in any industrial sectors necessary to maintain existing profit margins are a function of the total labor component of a product’s or service’s final price times the average wage increases that would result from an increase in the minimum wage to $15 per hour.
There's far more to this. It's not a Carte Blanche, one size fits all, effect on every business. It will affect many differently. If, for instance, WalMart paid $15 an hour, it would cost the average shopper less than a dollar, something like .47 last research I did, per shopping trip AND the 4 Walton's would still remain in the top 10 of richest people.
Of course a small restaurant would have problems, but I've read where the no tipping practice helped retain customers.
Bring back decent paying jobs, reduce " free" trade.....( even all you Donald lovers obviously know he himself is against it) and lets look out for 'Murika first. Good luck with that with the new what's in it for me attitude.
IMO...this wouldn't be an issue if there were good paying jobs to be had. Many of these minimum wage workers are NOT high schoolers or the uneducated. They're there because they have little choice. Our free trade agreements have benefited the few and hurt the many.
The wage gaps that are widening so quickly that the end result will be a plutocracy or revolt.
I do not think people should be paid more than their skill level, however, creating a caste system and not having an opportunity to at least achieve the " dream" is fading away.
As far as say, Mickey Ds? Wages there have been relatively stagnant. Has the price of a Big Mac ?
So to now say prices are rising due to wage increases is a fallacy, and naive. Of course it's part of it, but inflation certainly hasn't met wages...for years. Even the naysers here would agree their Chinese made Don't tread on me flag costs more now than a few years ago... Musta been the wages.
You need to take in to account shipping cost. The cost of diesel fuel has gone up faster than the rate of inflation (COLA Increases never factor in fuel in government benefits) Once the cost of fuel went up, the cost of shipping went up and therefore the cost of the final product needs to go up.
More importantly, it costs jobs.
The "living wage" myth is a strawman.
Minimum is an entry/training wage. Nothing more. Well, it's that and vote bait for low information voters.
Emeryville? Their pizza was probably $28 to begin with.
Same story, different perspective:
LA Times article
BTW, I've paid 30 bucks for a pizza before, AND had to leave a tip. Just sayin'
If anything, I think the "No tip" part of Lanesplitter's plan may be the more radical part of it.
Quote:$15 Minimum Wage Hike Causes Shop to Sell $30 Pizzas, Sales Plummet
Raise the minimum wage, because unskilled workers deserve to be paid as much as anyone else, says the Left.
There’s just that one tiny problem that liberals never seem to understand – prices go up!
It’s not a ‘maybe’ that prices will jump, it’s definitive.
http://www.youngcons.com/15-minimum-wage...s-plummet/
http://libertyfirstnews.com/minimum-wage...m=facebook
Quote:CEO Who Raised Minimum Salary To $70k Falls On Hard Times
Just three months ago, Dan Price was a progressive hero. To much fanfare, Price, CEO of Seattle-based Gravity Payments, announced he was raising the minimum salary for employees of his company to $70,000, and taking a $930,000 pay cut himself to help pay for his new minimum wage. Three months later, the experiment does not go well.
http://dailycaller.com/2015/08/02/ceo-wh...ard-times/
So basically, exactly what those of us who argued against this minimum wage hike from the start said would happen is actually happening. Imagine that. I mean, who in their right mind would ever have foreseen that raising labor costs by 60-100% would have an effect on the end user price of products? Who could possibly have imagined that bumping the minimum wage like that would result in wage inflation?
Quote:Minimum is an entry/training wage. Nothing more. Well, it's that and vote bait for low information voters.
Bingo. In so many ways. Unfortunately, the people earning near-minimum wage and making all this noise trend overwhelmingly towards the "D" side of the party line, and while they would no doubt vote for Democratic candidates anyway, throwing things like "increase the minimum wage to $15/hour" is a great way to ensure that they actually show up to vote. Who cares about the economic ramifications of paying high schoolers $30k per year, right?
Quote:Emeryville? Their pizza was probably $28 to begin with.
The article mentions $12 per pizza pre-hike, but doesn't specify whether that's an actual figure for the restaurant in question or just a hypothetical garnered from looking at Pizza Hut's website.
I do tend to agree with you, though, that there's probably no such thing as a $12 pie coming from a non-chain pizza joint in the Bay Area. I wish the article said exactly how much a pizza cost beforehand, but I'd say $18-22 is a safe estimate based upon what employees were making beforehand.
Quote:BTW, I've paid 30 bucks for a pizza before, AND had to leave a tip. Just sayin'
If anything, I think the "No tip" part of Lanesplitter's plan may be the more radical part of it.
Yeah, I paid $30 for a pizza from an independent place one, too. Granted, I basically put Noah's ark on the pizza: two of every animal known to mankind. The usual beef, chicken and pork, but also bison, elk and venison. I'm surprised the thing actually cooked--and so was the wait staff.
The "no tipping" part of the plan will likely doom the restaurant from a staffing perspective once the big three chains (Pizza Hut, Papa John's, Domiblows) catch up on wages, because I just don't see a world in which those big three chains put even the slightest hint on their website, menu, advertising or phone scripts about not needing to tip. Nor do I see them eliminating the delivery charge, which can be as much as 20% of an order. If anything, I think they'd raise the delivery fee to help defray the additional labor costs. I mean, who in their right mind would buy a $30 pizza from any of those three places? I can get three large Pizza Hut pies delivered for $24 plus delivery fee and tip right now. That'd be an over 300% price hike. They'd have no choice but to raise the "hidden" costs, like the delivery fee, to compensate for the higher labor costs while still making it appear that their two-star pies are significantly cheaper than Anthony's Gourmet Pizza and its five-star reviews are. If I were a pizza delivery driver and could make $15 for a company that strongly discourages tipping or $15 for a company that just jumped my base by 100% and still encourages customers to "tip drivers for awesomeness", I'd go with the latter 100% of the time.
Minimum wages should be state driven. It makes no sense to have a federal minimum wage when COL is so drastically different across the country.
$15 in NYC is much different than $15 in JAX
Quote:The article mentions $12 per pizza pre-hike, but doesn't specify whether that's an actual figure for the restaurant in question or just a hypothetical garnered from looking at Pizza Hut's website.
I do tend to agree with you, though, that there's probably no such thing as a $12 pie coming from a non-chain pizza joint in the Bay Area. I wish the article said exactly how much a pizza cost beforehand, but I'd say $18-22 is a safe estimate based upon what employees were making beforehand.
I think it's hypothetical.
Click on the LA Times link that both these sites are citing and pizza prices pre-hike are not mentioned anywhere I can see.
Quote:Minimum wages should be state driven. It makes no sense to have a federal minimum wage when COL is so drastically different across the country.
$15 in NYC is much different than $15 in JAX
Bingo. (This is scary, I'm agreeing with a liberal on something).
The thing is, $15 per hour is not the same thing in a place like San Francisco or New York City as it is in Jacksonville or "small town U.S.A.". The same can be said regarding the cost of doing business.
What I find interesting is how the article is so slanted and misleading in their coverage.
From the article
Quote:
But the changes have come particularly fast to the liberal Bay Area, now known for the highest cost of living in the nation.
"It takes a lot of stress out of my life," said Don Fletcher, 50, who saw his wage as a security guard in Emeryville jump last month from $11.50 an hour to $14.44. Before, he added, "I had to make a lot of efforts to cut corners, acquiring food as cheaply as possible. And any expenses like car repairs would require several months of strategizing and saving."
One key point to remember, the cost of living in the Bay Area is the highest in the nation. The LA Times is suggesting that an increase of $2.94 suddenly makes this guy no longer have to do what he says that he has to do.
Here is where the real truth regarding unintended consequences lies.
Again, from the article.
Quote:
Gumper has also earned kudos from patrons for his innovation, but some have recoiled from paying $30 or more for a pizza. He has seen a 25% drop in sales over the last few months and has had to eliminate lunch hours at some locations.
Higher prices leads to a 25% drop in sales, and even though his employees now make more per hour, their hours are getting cut.
Regarding the "no gratuity" part of this particular business. Again there is an example of how that's going to backfire.
From the article.
Quote:
Nina Gates, 44, recently left a high-tipping bar job in San Francisco to move closer to her ailing mother in Oakland. She found "the smallest studio you've ever seen" for $1,400 a month. As a new server, she earns $16.25 per hour with a chance for bonuses based on sales. But she misses her cash tips and isn't coming close to her former pay.
But is she not close to her former pay because she was a high end bar in San Francisco and now works in Oakland?
the purpose of a minimum wage is to provide a rock bottom in the marketplace to prevent pseudo slavery. It's not meant to be a panacea. One of the problems that i see with this conversation in general is that some want to reference an economic study about some conglomerate that can spread costs over tens of millions of customers will fair. When you use the force of government to impose a mandate on society then it doesn't just affect the walmart's of the world. Right now we are destroying more businesses than we are creating and i believe that is the first time in our history. Arbitrarily doubling the minimum wage does nothing to help the guy or gal who just cashed in their 401k because they had a dream and right now they can only afford 4 or five employees and they themselves work 100 hours a week to pick up the slack. Sometimes small business owners can go weeks months or in some cases years without ever actually taking home a paycheck especially when trying to get a small business off the ground.
With all the bank regulations designed to stop the extreme practices of mega mega banks we have lost about 40% of all community banks in this country. That's where a lot of small business people went to get start up capital. now in an environment where customers are becoming more scarce and depreciation of price is starting to creep into the market is not the time to unilaterally increase the cost of start up labor on small business owners when the odds are already stacked against them.
In a sane world, if a business owner wanted to pay the guy behind the counter $15 an hour then that's their business. Let the results over time act as a case for or against that kind of policy. Imposing one size fits all bumper sticker slogans may make you feel good in the short term, but in reality it just means that most people who don't have the ability to affect productivity or customer interaction enough to justify that wage will loose their jobs.
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