Leaving for Las Vegas: California's minimum wage law leaves businesses no choice

[Wolfheart9]

Funny how economists say otherwise. You don't raise it by the entire amount. You raise prices by 0-5%, while everyone got a 10% pay increase. That gives them more spending power, they buy more. Your profit margin per item goes down, but the iterations go up. That allows the business to absorb the cost.

Give the people more money, they buy more things.

This'l be a good video for you to bookmark and send to people like this one.

[oxymoronic]

/Sees posts like this /Notes the 5 states with the strongest economies in the US all have the strongest labor protections /Looks at reagonomics at work in states like Kansas and Louisianna /Chuckles and goes back to ignoring it.

you mean states that border the ocean make more money? no fucking way

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i'll use the same reply to the guy saying WUT

Gallup first asked Americans about organized labor in 1936, a year after Congress legalized private-sector unions and collective bargaining. At that time, 72% of Americans approved of unions.

now its 58% according to gallup.

also it should be mentioned that poll question was "do you approve of labor unions"

not does usa want more labor unions which i said no and is a fact.

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Funny how economists say otherwise. You don't raise it by the entire amount. You raise prices by 0-5%, while everyone got a 10% pay increase. That gives them more spending power, they buy more. Your profit margin per item goes down, but the iterations go up. That allows the business to absorb the cost.

Give the people more money, they buy more things.

min wage should always be increasing, problem is the rate at which it is increasing. when i started my 1st job i was paid $4.25/hr. now that same job is paying 9/hr. only been 22years or so. and now people that have no business sense want that to be 15/hr in 2021 which would be more than 350% increase since 1994.

[alexw]

When those prices are increased the wage increase in wiped out. What happens to the middle class that didn't that wage wage increase? They buy less...

That's complete nonsense. I'm pretty sure you've read prior minimum wage threads on these forums so already know that it is. So why are you lying?

[Dug]

you mean states that border the ocean make more money? no fucking way

Don't give them more power tho! Gotta keep the podunks relevant somehow

[TheTaurenOrc]

Oh boohoo, why not bugger off to Mexico then? I hear you only need to pay $4.25 an hour there. Or are you afraid your lord and savior President T.Rump is gonna tax you?

[Zabatakis]

Is Seattle bankrupt and baron yet from their insane idea of paying workers livable wage yet? I want to go RP fallout there like the rich people told me would happen in no time flat. Or did they just not enact that hike?

[oxymoronic]

Don't give them more power tho! Gotta keep the podunks relevant somehow

if they want more power than they currently have then they leave the union. good luck with that one

[Krigaren]

Can you economic geniuses at least acknowledge that increased labor costs negatively affect a business's bottom line?

It affects a business's overhead, but it'll only affect their bottom line if they're running so thinly that their revenue stream can't absorb a nominal increase in payroll expenses.

If a company can't absorb it, then they need to raise prices or find ways to cut excess costs. If they can't do that, then their product isn't desirable, and their business isn't agile enough. Businesses can't sit on their laurels and expect things to always be good and never change.

[Wolfheart9]

Is Seattle bankrupt and baron yet from their insane idea of paying workers livable wage yet? I want to go RP fallout there like the rich people told me would happen in no time flat. Or did they just not enact that hike?

Something something not at 15 yet so doesn't count something something just wait and see it'l fall apart something something trump will fix it.

[Glorious Leader]

Oh boohoo, why not bugger off to Mexico then? I hear you only need to pay $4.25 an hour there. Or are you afraid your lord and savior President T.Rump is gonna tax you?

Its a race to the bottom!

[sarahtasher]

What I don't understand is that the same people mocking minimum wage that is somewhat closer to living wages are the same who are screaming like possessed about how jobs are sent overseas...

Ah, that touching delusion that the ''others'' are lazy people and only ''you'', the Republican hardcore voters with 20 guns, are hard workers, and that if DUH GUD POTUS Trump remove all this ''red tape'' (like EPA regulations, worker protections, Union), you will be paid more

[Wolfheart9]

What I don't understand is that the same people mocking minimum wage that is somewhat closer to living wages are the same who are screaming like possessed about how jobs are sent overseas...

Ah, that touching delusion that the ''others'' are lazy people and only ''you'', the Republican hardcore voters with 20 guns, are hard workers, and that if DUH GUD POTUS Trump remove all this ''red tape'' (like EPA regulations, worker protections, Union), you will be paid more

Note they're also the ones screaming about government aid, despite people needing less aid if they had higher paying wages. Funny that huh?

[Independent voter]

It affects a business's overhead, but it'll only affect their bottom line if they're running so thinly that their revenue stream can't absorb a nominal increase in payroll expenses.

If a company can't absorb it, then they need to raise prices or find ways to cut excess costs. If they can't do that, then their product isn't desirable, and their business isn't agile enough. Businesses can't sit on their laurels and expect things to always be good and never change.

Yeah, the guy said he was running a clothing business of some kind, didn't sound like there was a lot of margin.

I couldn't get to the whole article because of the paywall. If someone has access please post it.

[oxymoronic]

What I don't understand is that the same people mocking minimum wage that is somewhat closer to living wages are the same who are screaming like possessed about how jobs are sent overseas...

Ah, that touching delusion that the ''others'' are lazy people and only ''you'', the Republican hardcore voters with 20 guns, are hard workers, and that if DUH GUD POTUS Trump remove all this ''red tape'' (like EPA regulations, worker protections, Union), you will be paid more

duh gud potus? how old are you?

and what dont you understand, raising the min wage only encourages jobs to go overseas. like i said the min wage should always be increasing, i just have a problem with the proposed rate and time frame.

[Auxora]

The cost of living is variable depending on location. A house that might cost $150k or $200k in Nevada might cost $700k in Los Angeles. Same for apartments that are 4x or more higher in California compared to other parts of the country. Gas is about .60 higher per gallon than the US average. Milk is higher. Everything costs more. So it makes sense to have different minimum wages in different areas. In one place $8/hr minimum wage might be fine, in another place it might need to be $12/hr or even $15/hr. Usually people throwing a fit about minimum wages are the ones that live in $8/hr areas that think $15/hr is nuts, but if they tried living there a year or two and realized how much higher the cost of living is they'd change their tune.

That said, minimum wages generally are a bit silly anyway. Wages set themselves with the market and that's the way normally it should be. In higher cost of living areas it's impossible for fast food places to get anyone to even apply for less than $12/hr.

[alexw]

you mean states that border the ocean make more money? no fucking way.

Oh Jesus.... you are actually arguing that liberal states do better because they border the ocean?

Tell me, how is Colorado, a state that doesn't border the ocean and is becoming increasingly liberal, doing?

The reason liberal states do better is because all the things they do work better than what right-wing states do.

[oxymoronic]

Yeah, the guy said he was running a clothing business of some kind, didn't sound like there was a lot of margin.

I couldn't get to the whole article because of the paywall. If someone has access please post it.

actually he ran a business making garments for other companies. so take a small brand that doesnt have its own manufacturing plant and they negotiate for this guy to do that. so yes competition that remains in the area will have to up their prices accordingly. problem is they can easily get that same garment manufactured elsewhere for much cheaper, whether that be mexico or nevada and they have to compete with that.

[Wolfheart9]

duh gud potus? how old are you?

and what dont you understand, raising the min wage only encourages jobs to go overseas. like i said the min wage should always be increasing, i just have a problem with the proposed rate and time frame.

Well if it hadn't been stopped from raising for so many years, we wouldn't be in this pickle, but it has to be given this push to catch up. In my parents and grandparents era, you could get a fast food job and afford a one bedroom apartment, payments on a crappy car, and health insurance with enough left for food and the occasional nicknack. With a factory job you could afford a two car garage home. You weren't putting much in the bank but you could live that way. People were able to spend money because of this, and the economy thrived. We need to get at least within sight of that again.

[Wyrt]

/Sees posts like this /Notes the 5 states with the strongest economies in the US all have the strongest labor protections /Looks at reagonomics at work in states like Kansas and Louisianna /Chuckles and goes back to ignoring it.

You're asking them to acknowledge reality instead of living in the fantasy land of trickle down.

[Zabatakis]

actually he ran a business making garments for other companies. so take a small brand that doesnt have its own manufacturing plant and they negotiate for this guy to do that. so yes competition that remains in the area will have to up their prices accordingly. problem is they can easily get that same garment manufactured elsewhere for much cheaper, whether that be mexico or nevada and they have to compete with that.

Then he foolishly invested in a failing/unsustainable business model and free market is doing its thing by putting down the weakling. A stronger better business will be able to use his space and resources better.