Minimum Wage, Nick Hanauer

Apr 2012
57,332
42,148
Englewood,Ohio
#63
Your video won't play for me. Doesn't matter, I get it.

Here's the question that needs to be answered by those against raising the minimum wage and who want a smaller government:

Do you want smaller government with less handouts or do you want a low minimum wage? Because you can't have both. If a guy flips burgers 40 hours a week and can't survive without food stamps we are defeated our purpose.

.....and don't give me this bullshit that McDonalds is going to automate and use robots to serve their customers their food because if it made any financial sense they would have done it by now.

I'm tired of subsidizing corporations, how about you?
The House is now bringing up a bill to raise the mnimum wage. Probably why you are hearing the nay sayers.
 
Likes: BitterPill
Nov 2015
4,538
1,375
UK
#64
I Have been against raising the minimum wage to $15, and probably still am. My stance is and has been, that Corporation will never lose. Whatever happens, they will find a way to get theirs.

This guy makes a lot of sense.

[video=youtube;RTNXzQZD-wY]
Take a business with various stores. One of it's stores turnover is $1m. It has a productivity (wage budget) of 10% so that means it can spend on base wages, plus overtime, plus pension contributions, plus employer's employment tax etc.. $100,000. So as minimum wage goes up, the quantity of staff drop. As this affects employment tax, they often replace full time hours with part time hours. So instead of one person working a 37 hours a week, you have two working 16 hours each.

So when you can't find staff in a shop, people have to thank productivity and minimum wage. You could raise prices, increases inflation and your new level of minimum is not sufficient, so raise it again and repeat.

Just speaking from experience.
 
Jul 2013
51,085
54,219
Nashville, TN
#65
Take a business with various stores. One of it's stores turnover is $1m. It has a productivity (wage budget) of 10% so that means it can spend on base wages, plus overtime, plus pension contributions, plus employer's employment tax etc.. $100,000. So as minimum wage goes up, the quantity of staff drop. As this affects employment tax, they often replace full time hours with part time hours. So instead of one person working a 37 hours a week, you have two working 16 hours each.

So when you can't find staff in a shop, people have to thank productivity and minimum wage. You could raise prices, increases inflation and your new level of minimum is not sufficient, so raise it again and repeat.

Just speaking from experience.
Australia has done well with their higher minimum wage..just saying...