Yes the auto industry is a good illustration
Posted on 01/18/2016 5:41:11 AM PST by Rockitz
Los Angeles residents of impoverished Chinatown were shocked to learn on January 17 that the Walmart they pleaded for years to get would be shut down at 7 p.m. Sunday evening due to the city’s new $15 minimum wage ordinance, and union harassment.
(Update: The closure was described by the company as one of 154 closures “that took into account a number of factors, including financial performance as well as strategic alignment with long-term plans.â€)
Immigrant Hispanic and Asian residents of central Los Angeles campaigned for years for a “big box†retailer to locate in their economically depressed neighborhood to compete against liquor stores that sold a limited number of food items at very high prices. In September 2013, Walmart finally opened a 33,000-square-foot grocery and drug store in the Chinatown area.
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Liberals piously called this negative impact a “reasonable tradeoff worth embracing,†whereas conservatives and business owners called it proof that risky government interference would destroy jobs and put more people on welfare. But there are no independent studies of what a 50 percent, let alone 100 percent increase would do.
Furthermore, Walmart’s closure in Los Angeles means that shoppers will still be able to go to neighboring cities to shop at Walmart, taking sales tax payments away from LA.
Breitbart News reported in late July that local union bosses want their locals exempted from the law, since businesses were already making plans to cut employee head count.
The same month, McDonald’s opened its first robotic restaurant in Phoenix, and hotels in L.A. announced they were planning to reduce guests’ daily room cleaning, or charging extra for doing so.
Private sector union membership has plummeted from almost 40 percent of the workforce in the 1960s to a new low of 6.6 percent in 2015.
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(Excerpt) Read more at breitbart.com ...
IIRC It showed the increase in employee wages added $2 billion to operating expenses but spread out over the net revenue and sales volume it came out to less than a penny per sales dollar. Which is significant but not that significant.
The data is available if you want to do it yourself.
Directive 10-289 comin’ atcha.
How does an alleged news organization repeat the details of a hoax? Their link doesn't work and it appears the story originated with something called News Examiner.
Thanks. I actually just got a FReep mail on that. I had never heard the story before which is why I thought it to be the interesting part, but admittedly did not go the next step and look at the reference.
Amen! When a business surrenders to political correctness and pays a person worth [maybe] $9 an hour $15 an hour, there will be some impact to the bottom line.
That's true. This is why I don't understand why they hire male employees. Women work at $.73 for every $1.00 a man makes. They could be saving 27% on payroll!
Then there’s this.
Admittedly, this is not quite the upright walking, talking style robot, but nonetheless a fair piece of automation.
The minimum wage in LA isn’t $15. Walmart is closing stores all over the country and the world. This headline will hurt Beribart reputation about telling the truth.
Now those former Wal*Mart employees get $0.00/hour wages.
Socialism and government meddling in the economy sure made their lives better ...
Do away with the minimum wage. End it. We don’t need it these days.
Economic theory teaches about supply, demand, and equilibrium price and quantity. Wage and price controls are usually discussed. If the government sets prices high, you get excess supply, unemployment for example. If the government sets prices low, you get excess demand, or shortages - think of the gas/price crisis of the 1970s.
It's taught this way in economic courses from introduction to economics, to intermediate micro-economics, and advanced micro-economics.
Liberals are totally ignorant on this topic. Whenever I mention that minimum wage laws lower employment of minimum wage workers, I get a look of surprise. They've never heard this before.
By the way, the law of demand applies to union wages and benefits also. Unions drive up wages/benefits for union workers, but decrease employment. Unions are good for some workers, but bad for workers in general.
It will be $15 by 2020.
http://www.latimes.com/local/lanow/la-me-ln-county-minimum-wage-20150721-story.html
Yes the auto industry is a good illustration
Stupid, stupid lefties. Poked the sleeping giant. Spoke crap to power, and got trampled.
Expected results once regulatory influences clash with basic human nature, which happens to be TRUE capitalism (not crony capitalism at any percentage).
“As people deeply committed to environmental and climate justice, we condemn Walmart as a climate criminal and we stand side-by-side with Walmart’s workers organizing for $15 per hour, full time work, and the respect they deserve.”
Better fiction couldn’t possibly be written...
I see what you did there. LOL!
“Some city developers and politicians worked hard to get companies like Wal Mart and other “big box†stores to set up shop in urban areas...”
The politicos thought they would have a “hostage” situation, and could force Wal-Mart to do their bidding.
Wal-Mart showed them. “Last one out the door...shut off the lights.”
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