Liberals have absolutely no problem spending someone else's money without consideration to the consequences or the realities of business ownership.
What? where in the hell did you get that information. The highest operating expenses in any business is labor. Have you ever seen a profit and loss statement? Why don't you start your own business and pay unskilled workers exactly what you think is fair, spending your own money vs. someone else's? Are you telling us that the costs of a burger exceeds 7.25 per hour?
I am in the restaurant business. I have two stores and this summer will have three. I am familiar with restaurant accounting. Your reference has a number of factual errors one of which is labor burden which is a question you didn't answer. In addition, I don't believe that they ran a twenty percent labor cost including management labor. So please tell me what labor burden is on fifteen dollars an hour or stick to talking about something you know about.
YOUR labor may cost relatively more in comparison to food costs than it does for McDonald's. It may also depend not only on the type of food that is sold, but also on the volume of what food is sold at what prices relative to one's labor force. I didn't make the claim that food costs more than labor for McDonald's (though I should have said "food and paper") - you can find it here. I'd say that McDonald's higher food-to-labor cost is probably because they sell a heck of a lot of food relative to the size of their labor force.
And good for you that you own two - and soon, three - stores. I've only got one store (though not a restaurant) and a business at home. Also, you may want to take a look at your labor turnover costs - if your turnover costs are high, you may be interested to know what the Harvard Business Review found about paying higher wages - Costco actually saves money by paying higher wages.
Did you read my reference? I guess you didn't. Here's another that shows that yes, food and paper costs are higher than labor costs for a McDonald's restaurant.
And FYI we do own two small businesses - one's the storefront I'm in right now where we sell airline ticketing, package shipping, and money remittance, and the other business is in our home where we care for an elderly woman with dementia and for a medically-fragile young adult.
Next time, try asking first before you make assumptions. But then, that's part of what made me become a liberal....
please show me those costs on a financial statement. Costs of goods aren't an expense and are paid for out of the revenue for that item. Over and above those costs are the monthly operating expenses so before spending someone else's money I suggest you employ some people, create a financial statement, and learn about business operating expenses.
But lost in this discussion is a fundamental misunderstanding of McDonald’s business. The company owns just 20 percent of its restaurants. Most of the $27.6 billion in revenue it made last year came from franchise royalties and rent paid by franchisees. So a researcher can’t simply look at the company’s annual report, calculate the salary number, and then extrapolate that for an entire system. McDonald’s is a totally different business from the one run by franchisees.
The restaurant business has the highest failure rate of any small business. The government has already crippled it with insurance costs and more restrictive dram shop laws. Adding additional labor costs is just going to cause closures, as it has in Washington. Increasing the minimum wage is a bad idea.
please show me those costs on a financial statement. Costs of goods aren't an expense and are paid for out of the revenue for that item. Over and above those costs are the monthly operating expenses so before spending someone else's money I suggest you employ some people, create a financial statement, and learn about business operating expenses.
I'll be the first to tell you that you know quite a bit more about the restaurant business than I do - no argument there. Thing is, the fact that you know more about that business doesn't mean that you have a better understanding of the overall economics of the minimum wage hike.
Where I'm going with all this is that you know better than I do how it affects your particular industry...but your industry, as big as it is, is but a small part of the greater whole. What we liberals see is if the entry-level workers in every industry (and not just the restaurant industry), they will still spend almost every penny they get - all the money will still go back to the stores, the restaurants, the entertainment industry, whatever. The businesses will pay their entry-level staff more, but there are more people with money who are spending that money. Will businesses automatically raise their prices in consonance with the pay raises? Sure, some, perhaps most will...but then there's that little thing called 'market forces' at work, and those businesses that figure out what corners can be cut, how to run things more efficiently, will refrain from raising their prices too high...and competition does the rest.
A rising tide lifts all boats...and we've seen it before. This minimum wage hike isn't much different from raising taxes - it's still a form of monetary redistribution (which words makes conservatives hurl). But again, it's not as if the extra money these entry-level workers are getting paid is somehow being poured down a pit - they spend almost every penny, and it's the businesses they go to that are the beneficiary. Including your own.
And if you need to see proof of this, just compare the first-world democracies to third-world democracies. The first-world democracies all have high effective minimum wages (except for Germany, which has very strong unionization)...and they are all (even Greece) retaining first-world status after five decades or more of this kind of economic model. Third-world democracies have no significant minimum wage...and as a result, their workers are paid not much more than starvation wages - I've seen it with my own eyes.
So...yeah, you might be dismissing all this with a disgusted ha-rumph, but that's what I see...and the economies of all the world are my proof.
Why don't you look to see how much it really would raise prices according to The Motley Fool.
Congrats while you worked in the 1960s. The fact you think $15/hr is even a high wage(depending upon location) for entry level really says a lot about how in touch you are with the average work force.
Sometimes there are not the options available for people and that is something many on this board are apparently ignorant towards.
Can I get a different link than heritage? Sorry they are a bit on the... make up facts as we go side of things.
Oh please. Stop embarassing your self. When Heritage states a fact, it's fact.
My cost of living is significantly lower than most in my area due to the lack of debt. That being said, when I lived in the Midwest, the cost of living was significantly higher due to the lower wages. If I was doing the same job back in the Midwest that I am doing here I'd be maybe making 2/3rd of what I do now. Which would mean zero mobility chance even with little to no debt.You really don't seem to have a problem spending someone else's money on issues you don't truly understand. You judge everyone else by your own standards not realizing that not everyone else has your cost of living. You and liberalism go well together, all knowing, all caring, and yet never solving any social problem with all those good intentions.
That isn't true at all and that is the point of what the minimum wage did. Sadly however, businesses have since made it stagnant(Lobbying) and that is why it isn't increasing for inflation like it should be.Economically you can't uncouple wages and production. It's unsustainable.
I never said 15.00 an hour was a high wage. I still maintain that anyone staying in an entry level position is not motivated or has reached their level of incompetency.
I AM out of touch with the work force today. I AM RETIRED!!!!! I spent a long time saving my money so I could RETIRE. We lived well below our means for decades to save for retirement. When I got back from Iraq the Army said I my hearing was shot so they retired me. I worked as a roofer, taco bender, steel worker, auto mechanic, carpet layer, framer, electrician, bucked hay, day labor doing whatever they had for me that day and finally aircraft mechanic. I took a lot of low paying jobs just to eat and pay for gas. That is how you earn something. Nobody is owed anything. Nobody deserves anything until they earn it.
Oh yeah, in two years my wife will retire too and both of us will be RETIRED!!! Just two old farts and a dog wandering around in the mountains enjoying being RETIRED!!!!
My first job was at Taco Bell at 3.65 an hour, that was in the 70's.
My cost of living is significantly lower than most in my area due to the lack of debt. That being said, when I lived in the Midwest, the cost of living was significantly higher due to the lower wages. If I was doing the same job back in the Midwest that I am doing here I'd be maybe making 2/3rd of what I do now. Which would mean zero mobility chance even with little to no debt.
That isn't true at all and that is the point of what the minimum wage did. Sadly however, businesses have since made it stagnant(Lobbying) and that is why it isn't increasing for inflation like it should be.
Then you are out of touch with the common work force and have been for several decades. You are old enough at this point that you have lost touch with minimum wage workers.
Fyi, in 1970 your 3.65 is equivlent to $22.90 today(47,000$/yr). So not only did you make significantly more than $15/hr but that was solid middle class, working at taco bell. Today that is barely above the poverty line 7.25(15,080$/yr).
CPI Inflation Calculator
Impressive eh?
I'd totally approve wages being what they were in the 1970s, adjusted for inflation.
Not historic or accurate, The Federal minimum wage did not hit $3.65 until after 1988,Then you are out of touch with the common work force and have been for several decades. You are old enough at this point that you have lost touch with minimum wage workers.
Fyi, in 1970 your 3.65 is equivlent to $22.90 today(47,000$/yr). So not only did you make significantly more than $15/hr but that was solid middle class, working at taco bell. Today that is barely above the poverty line 7.25(15,080$/yr).
CPI Inflation Calculator
Impressive eh?
I'd totally approve wages being what they were in the 1970s, adjusted for inflation.
Not historic or accurate, The Federal minimum wage did not hit $3.65 until after 1988,
U.S. Department of Labor - Wage & Hour Divisions (WHD) - CHANGES IN BASIC MINIMUM WAGES IN NON-FARM EMPLOYMENT UNDER STATE LAW: SELECTED YEARS 1968 TO 2013
which using your own calculator makes it $7.30 per hour.
CPI Inflation Calculator
That is exactly the federal governments job, when people are being taken advantage of, their job is to fix it. They've done it numerous times with the highway system, military, and federally mandated minimum wage.Your cost of living is yours and to pretend that you know what others have for a cost of living is typical liberalism but thanks for admitting that every state has a different cost of living and thus every state can do what your did. No one needs the federal bureaucrats in D.C. to tell a private business in your state what to pay its workers. That is up to the people of the state, not the federal government. There are more than half the states in the nation that have a minimum wage higher than the minimum wage and that is where the responsibility lies, at the state and local level, not the federal level.
Do you make minimum wage and if not why not? I employed over 1200 employees and never paid minimum wage because the market wouldn't allow it. Where does personal responsibility lie in your world? IF someone makes minimum wage for years why is that the private business's fault and not the employees?
No! you cherry picked the earliest year of 1970 to make $3.65 equal to $22.I take it you missed the point where I said he was solid middle class while working at taco bell? He made 22/hr at taco bell, and yet we have people in this thread decrying them making 15/hr in todays wages. Saying they aren't worth it, and etc.
I didn't say anything about 3.65 being minimum wage in 1970.
I'm sorry but no it isn't. They have lied on many occasions and fudged facts when it has fit their agenda. Let me know if you find a better source than something funded by rich conservatives to promote their agenda.
That is exactly the federal governments job, when people are being taken advantage of, their job is to fix it. They've done it numerous times with the highway system, military, and federally mandated minimum wage.
I would never want someone to do what I did to escape the black hole that is the Midwest.
Edit* It lies with the employers when they making people work below the standard of living required to not be on government assistance.
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