Posted on 05/15/2016 8:59:32 PM PDT by Jim W N
Overregulation: Carl’s Jr. and Hardee’s CEO Andy Puzder has people all in a huff over his idea to automate restaurants. But why be upset with Puzder? This is an inevitable consequence of massive minimum wage hikes by the government.
“With government driving up the cost of labor, it’s driving down the number of jobs,” said Puzder. “You’re going to see automation not just in airports and grocery stores, but in restaurants.”
He’s right. That’s why whenever the minimum wage rises above the market-set prevailing wage, jobs are destroyed. Who would pay someone $15 an hour to do a job that’s worth less than that? No one.
This isn’t rocket science or even advanced economics. It’s plain common sense — something that populist demagogues on the left seem to be missing entirely.
Consider:
IBD’s Jed Graham surveyed six big U.S. cities that hiked the minimum wage in 2015 and found they took a serious jobs hit. “Wherever cities implemented big minimum-wage hikes to $10 an hour or more last year, the latest data through December show that job creation downshifted to the slowest pace in at least five years,” Graham wrote.
American Enterprise Institute looked at Seattle’s recent minimum wage hike. After it began phasing in a series of hikes in 2014, Seattle lost 10,000 jobs between September and November, and the unemployment rate jumped a full percentage point. As AEI economist Mark Perry notes, Seattle’s minimum wage hike from $9.32 to $15 an hour amounts to a $11,360 tax on every minimum wage job.
A 2014 Congressional Budget Office study estimated that raising the federal minimum wage from $7.25 an hour to just $10.10 an hour would kill half a million jobs. Worst of all, those who suffer most are the young, minorities and those with little education or training.
(Excerpt) Read more at investors.com ...
---A message from Marxists from all over the world.
“By definition, your standard of living has just been lowered. “
That definition applies only to an idealized model used in the classroom. Ceteris paribus.
It ignores the real world costs of unemployment and welfare and crime and substance abuse that have followed in the wake of the mass transfer of manufacturing out of the country, the burden of which gets transferred to everyone else. People have grown tired of being fed libertarian dogma as they watch their towns being hollowed out.
“The real world includes the other factors that make simplistic modeling fail.”
No. Valid principles remain valid. By your argument raising price does not lead to a decrease in the quantity demanded “in the real world” because other things are going on. Raising price does lead to a reduce quantity demanded, compared to compared what would be the case without the increase in price.
“the E Trogs (Economic Troglodytes) insist tariffs cause jobs and are demanded by the ghosts of the founders “
Hunh.
Who knew that Alexander Hamilton was writing an E-Trog manifesto in his Report on Manufactures, his third report and magnum opus?
Apparently your voracious study of American history omitted it.
Please tell that to the hoards of protectionists here on FR. Boy do we need some remedial economic refresher courses around here.
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I am a free trader BUT!
Free trade is not free if a country subsidizes it’s exporters or it’s manufacturers by paying any of the cost of manufacturing, when they do that they artificially lower the price of the goods sold. By making the goods cheap the companies in the US who have high wage cost and high taxation are forced out of the business of competing with foreign countries.
Tariffs should only be applied to countries that subsidize their exporters and then the tariff should equal the subsidy.
While protectionism is bad if it gives an unfair advantage to our businesses it is not bad if it protects them from unfair advantage overseas.
My understanding is that Mr. Trump, who by the way has a degree in economics from the best business school in this country understands this well and will apply “protections” only under the above conditions. I was an economics major from a much less well know school but I completely support the idea of targeted protectionism to protect us from unfair foreign state sponsored businesses.
Jim, FR seriously needs to offer remedial courses in basic economics and how economic freedom actually works.
Start with:
1) the free market economy (economic freedom) works by the supply-and-demand laws of economics, is driven by God-given self-interest, run by VOLUNTARY cooperation between buyers and sellers, and creates wealth and prosperity.
2) the $4 trillion central government (socialism) works against the supply-and-demand laws of economics, is driven by greedy politicians, doesn't produce anything, forcibly takes your money, and creates poverty.
That works great when buyer and seller belongs to the same culture and value system. Globalization now puts you at the mercy of those who do not share our values.
The founding fathers, especially Hamilton, would laugh in your face has you said that to him.
Look up ‘elasticity of demand’ or Giffen goods. There’s a reason that supply and demand graphing warns that perfect competition is an assumption.
Yep, all these companies will saving billions in labor will be passing on significant saving to the customers. Look for .89 cent double cheese burgers and .50 bags of fries! Price wars will begin and all McWhoppers will be trying to undercut each other.
” Yours and others’ posts on this thread belong on MoveOn.org”
..says the ‘libertarian’ Commissar in charge of acceptable thought...
Karl Marx, the Fabian Socialists, and Keynes already did that, with disastrous results.
The laws of economics, like the laws of gravity, don't change. You need to LEARN what those laws are. Start with Adam Smith's "Wealth of Nations" and/or Milton Friedman's "Free to Choose."
- the free market economy (economic freedom) works by the supply-and-demand laws of economics, is driven by God-given self-interest, run by VOLUNTARY cooperation between buyers and sellers, and creates wealth and prosperity.
- the $4 trillion central government (socialism) works against the supply-and-demand laws of economics, is driven by greedy politicians, doesn't produce anything, forcibly takes your money, and creates poverty.
We believe in your definition of economic freedom INSIDE the USA between the 5o states and the American people.
Jim Robinson need to realize the Free Traitors™ are pushing a Marxist agenda on his esteemed website.
I know, let’s turn all the fast food places into the DMV - I’m sure that will fix it.
Fixed it.
I’m talking about the $4 trillion mostly unconstitutional federal government and their hundreds of thousands of minions who PRODUCE NOTHING AND FORCEFULLY TAKE AND WASTE all of your money they possibly can and suck the economy dry.
THE $4 TRILLION FEDERAL GOVERNMENT - THAT is your problem, not Carl’s Jr’s or it’s CEO.
You, as many, even here on FR, have bought the Leftist lie hook, line, and sinker
Tariffs are as American as apple pie and George Washington.
Pelham’s “solution” has just lowered your standard of living. Problem solved? I don’t think so. More problems CREATED by layering more federal government on top of problems the federal government created in the first place.
Problem isn’t “solved” until the federal government is put back into its constitutional cage.
>Define who you are talking about. I’m talking about the CEO of Carl’s Jr. who is paid millions of dollars a year.
Whom is kept in his position by the shareholders, no? THEY too agreed on the $$ paid. Are you saying the $$ isn’t his to do as he wishes? That his ideas/plans/etc. aren’t vetted by the share owners?
Jim was 100% on the mark...the problem is GOVT 1st and foremost. THEN worry about the tariffs/etc. (IMO, they should all be thrown out and re-done).
Your lights on still on central_va, but nobody’s home. Talking to you is like talking to a recording.
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