Raising the minimum wage.

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Raising the minimum wage.
08.05.06 (10:00 pm)   [edit]
Raise the minimum wage. I know I said I would be too busy to do this regularly anymore, but enough of this "raising the minimum wage" bullshit. I'm sick of hearing about it.

"But Angry White Male," you say "the minimum wage hasn't been raised in almost 10 years. People can't support a family on minimum wage." I would respond to that by saying that if you are trying to support your family on minimum wage, you have made some poor decisions in life and don't have any business trying to support a family. It isn't your employer's job to step in and help you raise your kids. The minimum wage is not designed for people who have families to support. The minimum wage is a wage for employers to pay people who have no developed set of skills to bring to their job. It is an entry level wage to pay people to flip burgers, clean toilets and sweep floors. If you have developed a skill set that is applicable to your job, you employer will pay you what you are worth. Yes, there are some people out there who are worth more than minimum wage. But by the same token, there are probably 10 times as many who aren't worth paying 5 dollars an hour. I can drive you down to the local Taco Bell right now and show you 10, because they get my fucking order RIGHT about 30 percent of the time.

Another reason the minimum wage shouldn't be raised, it forces employers to dedicate more of their money to payroll. Let's pretend that all the money a company is involved in is a pie. We're going to chart the way that money is divided. A "pie chart," if you will. All the money the company makes goes into the pie. One slice of that pie is the operating costs the company must pay to keep itself running (maintenance, advertising, etc.) The next slice of the pie is the amount of money the company spends on its employees in the form of wages, incentives, etc. The final slice is the amount of money the company keeps for itself as profit. Contrary to popular belief the primary function of any company is NOT to provide its employees with a "living wage" or affordable healthcare. (I know many of you socialist bedwetters out there don't like this) The PRIMARY function of any company is to make that last slice of the pie, the money it keeps, as big as possible. It must do so by keeping the other two slices as SMALL as possible. When you force a company to pay more to its employees through rasing the minimum wage, it's going to do what it can to reduce that portion of the pie by getting rid of employees. Ever wonder why Wal-Mart has 40 checkout lanes and only 5 are open, this is why.

Raising the minimum wage by a dollar an hour may not sound like much, but let's look at a hypothetical situation. Let's say you have a giant big-box store like Wal-Mart or Target. This store is open 24 hours a day, and it's employees work 3 eight-hour shifts. Let's say that the day shift employs around 50 people, and the late shift and early morning shift each employs around 20 people. We're looking at 90 employees. Now, let's say that half these employees, 45, earn the minimum wage and the minimum wage is raised by .50 cents an hour. That's $22.50 an hour more that the store has to pay in wages, or an extra $540 a day. The store is open 7 days a week, so that's an extra $3,780 a week. There's 52 weeks in a year, so the store is paying an extra $196,560 A YEAR! Now, this is a big chain store about half the size of Wal-Mart, with around 700 stores a year. Let's say our hypothetical store is representative of the average size of this company's store. Simply raising the minimum wage by .50 cents an hour forces this company to pay $137,592,000 in wages. One hundred thirty seven MILLION! So, this company is going to do one of two things. Reduce the amount it has to pay to it's employees by laying people off, or increasing the amount of money going into the pie by raising prices. People start having to pay more for it's services, so it's a wash. You minimum wage bums out there are making more per hour, but the cost of milk, pantyhose, shaving cream, tires, cars, toilet paper, etc. goes up. Of course, you're average minimum wage earner either isn't bright enough, or doesn't care enough to realize this, so when they hear Senator Joe Schmoe saying "I'm going to fight for a raise in the minimum wage," they get excited.

On a side note, I hear the idiots that run the city of Chicago have just passed a law that says stores with at least 90,000 square feet and make at least $1 billion in profits a year (wonder what chain this is aimed at?) must now pay a minimum wage of $10 an hour. Jesus H Tap-Dancin' Christ! Wal-Mart, which has no stores in the Chicago urban area, but is planning several, is likely to abandon those plans and concentrate on building stores in suburban Chicago where the law does not apply. Target, which does have stores in Chicago proper, is considering closing some of its stores. Chicago Alderman Joe Moore said, "Let's make sure that when these big stores open in our neighborhood, they help our people, not exploit them." Nice job, asshole. Instead of "helping" people, you're going to cost people jobs they already have, or potential jobs in the area. Of course, the morons running Chicago won't be blamed when Target lays off half it's Chicago workforce, Target will. Buy why stop at 90,000 square feet and $1 billion in company profits. Why not 45,000 square feet and 500 million in profits. After all, you want to "help" people right? Force this upon more stores, you can help more people, right?

 


posted by: takingtheblade (or Jill) (reply)
post date: 08.09.06 (9:40 am)

Hey, just dropped by to say I completely agree. When you're against raising minimum wage, people look at you like you're a cold-hearted monster. But as I was reading this entry, I thought about what could possibly lead someone to being on minimum wage...and I realized not much. I can't think of any circumstances in which someone would be unfairly on minimum wage. I think the real solution here is education. Obviously all those career days and such didn't get into these people's heads, or they need to see the harsh reality awaiting them if they don't put high school graduation/a college degree first. Perhaps more programs dedicated to these subjects are the answer. It would be difficult, though. I know that if I didn't grow up in a household with two parents who always expected me to do well in school and eventually go to college, maybe I wouldn't understand who much it means in the real world.



posted by: heavyarms (reply)
post date: 08.10.06 (5:33 am)

The only reason someone would be paid minimum wage is that that's what their employer has decided this is what the job is worth. If your talents and training are worth more than minimum wage, you should go find another job. Contrary to popular belief, employer's usually don't try to screw their workers over. They just want to pay their employees the MINIMUM amount needed to keep the person there and happy. Minimum wage jobs are jobs that, if the position is vacated, it won't be too hard to replace the person who left. People look at you like you're a cold-hearted monster when you say this because they usually don't understand how a free market should work. If you go back and look and inflation during our country's history, it usually mirrors the raising of the minimum wage. It's that whole supply and demand thing.



posted by: heavyarms (reply)
post date: 08.10.06 (5:33 am)

Thanks for dropping by, BTW.



posted by: giant pissed off red headed bastard (reply)
post date: 08.10.06 (7:25 am)

Every economist on Earth will tell you that rasing minimum wage causes businesses to raise the prices on goods and services, usually at a rate that exceeds what is needed to offset the increase in labor cost. "WHOAH", you may say, "what is that last part?". Yes, believe it or not, businesses would charge more if they thought they could get away with it. This is like a "get out of jail free card" for them, it gives them a good excuse to give to John Q Public to justify a raise in prices, since the average person has no idea about any of this, you can bet that your ass that businesses will try to use this as an opportunity to increase profits.

Now, as for WalMart, I will give you my rant on them-

"FUCK WAL-MART"

Rant over. Well seriously, Walmart requires manufacturers to negotiate their prices to such a low level that barely any profits are being realized, and they are so large a force that if you dont have your product in their store you might as well not exist. Walmart cuts prices so low that smaller local businesses are unable to compete, a large enough portion of the population are unwilling to pay more for the same goods just to support local businesses, so eventually the smaller places go out of business (these places have owners who relied on their business to maintain their standard of living). Without a business to run, how are they going to pay the bills? Well there is a spot open at the local Walmart for $7.50 an hr. Ever notice a bunch of boarded up businesses in smaller towns with Walmart stores? My 3rd prong of hatred for WallyWorld is the low pay for the employees. As noted, employers do not get rich by paying employees more than they are worth. Walmart is the largest employer in the US, and they pay next to nothing. I dont know about you but I dont think I will be able to have a very high standard of living on $10 an hr. Maybe a small percent of the employees make enough to live comfortably on but for the most part, Walmart keeps its employees at or just below the poverty level.

So lets add it up, Wal mart is no good for the suppliers, no good for the communities they are in, no good for the employees. I think that is just about everybody innit? The only thing good you can say for them is that they provide products a little cheaper than the competetion. At what cost? Some folks blame a lot of stuff for the decline of the American way of life, I blame Wal-Mart.



posted by: Heavyarms (reply)
post date: 08.15.06 (8:17 pm)

Sorry bud, that business about Wal-Mart coming to town and putting "mom and pop" out of business is crap. I've heard it before, Wal-Mart comes to town, all the moms and pops board up, then Wal-Mart jacks up their prices. Baloney. Or Bologna. First of all, Mom and Pop can either figure out a way to be competetive, or go out of business. That may sound cold and cruel, but if you are willing to live in a free market economy that's the way HAS to be. I live in a town of 4,000 where Wal-Mart is just about the only option. If you want a lawnmower, DVDs, clothes, Wal-Mart is the only place you can go. If you want groceries you can either go to Wal-Mart or take a chance at Winn Dixie where half the stuff is expired because no one shops there and the prices are higher. If you want your oil changed, you can either go to Wal-Mart, or you can go down to Jiffy Lube where they open at 9, close at 4, and they won't even be open if the guy's sick. The prices at this Wal-Mart are no different than the 15 other Wal-Marts within a 50 mile area.


Look, I'm certainly NOT a fan of Wal-Mart. I dread going there. It's dirty, it's crowded, and the employees are all jerks. I usually make a 15 mile drive and go to Target when I need to get items most people buy at Wal-Mart. I make my wife go there to pick up our prescriptions (there's another place where Wal-Mart is the only option available). I avoid the place at all costs. But in our economy, customers don't have to shop at Wal-Mart if they don't want, suppliers don't have to do business with Wal-Mart if they don't like their business practices, and people don't have to go work at Wal-Mart if Wal-mart's not going to pay them what they think they are worth.



You're right, businesses WOULD charge more money if they could get away with it. But because we live in a free market economy, they CAN'T get away with it. If store A decides to sell widgets at 20 bucks a pop, store B can decide to sell widgets at 15 bucks. People start shopping at store B if they decide its worth it. Store A can either drop its price, or not sell as many widgets. If store B cannot drop the price of its widgets to 15 bucks, then guess what...the market has decided that widgets are worth 20 bucks. If Store A gets greedy and decides to start charging 25 bucks for widgets, and customers decide that's too much to pay, then Store A will drop its price or not sell widgets. If people DO want to pay 25 bucks, then the market has decided that this is what they're worth. The same goes for employees. If store A wants to pay cashiers minimum wage, and store B wants to pay them $7.00 an hour, people go apply at store B. Store A can either match store B's wage, or can suffer with a reduced workforce or inferior employees. If store B cannot afford to pay their cashiers as much as store A is paying, then the market has decided that cashiers are worth minimum wage. The same principle can be applied to suppliers as well. This is a very basic explanation, but that's how it is.


I HATE Wal-Mart, I DETEST the store. But I'm going to blame it for American's ills (Democrats and Republicans should share some of the blame, right? Oh, and Bill Gates too.) You did get one thing right, though. The only good thing you can say for them is that they provide products a little cheaper than the competition. This is how our economy operates. YOU have to decide if the "costs" you cited above are worth buying from them. If enough people decide they aren't, then Wal-Mart will change. As it stands now, Americans have decided that they can put up with employees being treated and paid like crap if they can get Chinese-made goods at a reasonable price.



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