Posted on 02/24/2020 7:46:45 AM PST by rktman
A proposal from Democratic presidential candidate Tom Steyer to increase the federal minimum wage to $22 per hour would body-slam the economy, according to a former CEO of one of America's major corporations.
Earlier this month, Steyer proposed increasing the federal minimum wage, which is currently $7.25 per hour, to $22 per hour, according to Fox Business. Other major Democratic presidential candidates have lined up behind a $15 minimum wage, according to The Washington Post.
(Excerpt) Read more at wnd.com ...
Yup, and afterwards, as McDonalds continues its downward spiral, the gubmint can push all the competitors down into the same gubmint-created maelstrom. It’ll be fun.
Ah, the article’s proposal was so absurd I suffered cognitive dissonance for a minute. I’d not heard any serious proposals to bump minwage over $15/hr.
At $22/hr, gasoline prices will rise to ~$6.82/gal. All else being equal, gas per gal costs about 1/3rd an hour of the gas station clerk’s pay.
ALL? BS. So if we go back to slavery everything will be free? LOL!!!!
LOL! How do you figure that? Pull that out of your bung hole?
Recall the brief proposal, some years back, to mint $1T coins for the purpose of federal debt reduction.
A $22 minimum wage would be the greatest possible boost to the economy - in the all-important robotics sector. :)
It’s about all of those union contracts tied to the minimum wage and the big boost in Democrat contributions that would follow. Whether marginal people can actually get $22/hour jobs or find no work and end up in an expanded social welfare system is of no consequence to Steyer and the other master manipulators.
Not sure where your rudeness stems from, but taking the appropriate question seriously...
Minwage is currently around $7.25/hr; a gas station attendant makes that (it’s simple commodity work, with a gov’t-imposed baseline wage).
Based on that, considering it representative of costs involved (this is a casual FR post, not an article in a peer-reviewed expert journal) we compare it to the main product being sold at a gas station.
Gas currently is about $2.25/hr around here.
If the minwage is forced to $22/hr, the gas station owner needs to pay his clerks that substantially higher wage. To make up for the fact he’s running on thin margins (and making this a cursory calculation representative of everything involved), he’ll have to raise the price of gas a similar 3x ... hence gas jumps to ~$6.75 or so a gallon (slight difference from prior number because I estimated differently before).
Same reasoning as other comments about the price of hamburgers jumping significantly. I’m just quantifying & estimating with actual numbers, and my preferred example is gasoline sales.
So I should expect a big bump in my retirement and SS check then? Oh, they haven’t addressed that? Surely they’ll take care of us seasoned citizens right? I think even nannie bloomers has a plan for us. :-)
Employee John Lathe makes 10 widgets per hour and is paid $10.00/hr. The widgets sell for $10.00 each. John gets a pay increase to $15.00 hours ( a 50% pay increase!!!) . How much will widgets cost now in order to absorb the increase in John's hourly rate?
Gas is $4.79 in Bridgeport Ca currently. So it’s creeping up. But it’s always high there.
If the minimum wage kept pace with the consumer price index over the past 50 years, the current minimum wage would be something like $9.60 an hour. Say $10 an hour. If Steyer thinks it should be $22 an hour, he can always pay minimum wage workers the difference out of his billions.
We have two McDonalds in the town near me. One of 'em has gone that way. Wife went in, expecting the old setup only to find a row of kiosks and one girl in front, with three employees in the back. Said it was an eerie feeling and didn't return thereafter.
The other one we still visit on occasion for coffee and burritos. They have two kiosks and one gitl in front. Last time there, with no other customers waiting, she led us over to one of the kiosks and placed our order and then back to the register to take our cash. (???) Maybe they are doing that to ramp up the kiosk count.
Bumping minimum wage pressures (directly or indirectly) a rise in other wages. Union wages are often explicitly tied to minwage; increase burger-flipper’s wage 3x and assembly line guys will see theirs rise by whatever the contract’s math says (either +$14.75 or x3).
What percentage of the employer’s costs are the wages paid to the employees? There are other expenses such as raw materials, electricity, etc. When I had a sub-minimum-wage job at a fast food restaurant when I was in college, I was told that the wages were 25% of the budget.
Answer to that fair question is either:
- Oh he11 no, you funny.
or
- Sure, they’ll pay out more - and just print more money to cover it.
Except 90%+ of all workers are non union.
Whew! I feel better now. LOL! Venezooella dollars coming up.
It is a very simple question that even you should be able to answer.
But many union bosses and execs have their pay structure based on the prevailing minimum wage, so that tells you exactly why the Dems fight so hard for this lunacy. It's a kickback for millions of votes. Democrat leaders and union bosses each have kickbacks on their kickbacks.
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