New Hostess owners will refuse to hire union workers

[zerocoolhack]

The entire world economy would sink back into a deep recession the moment that the federal minimum wage was raised to $15. The American economy would fall flat on its face and drag down everyone else with it.

And you read that where exactly? Because the exact opposite would happen. It has been proven time and time again that if the middle and lower classes had more money the economy would be booming.

If the rate of growth of ceo's pay matched the workers. Today workers would be making $200k a year.

[Sunseeker]

The entire world economy would sink back into a deep recession the moment that the federal minimum wage was raised to $15. The American economy would fall flat on its face and drag down everyone else with it.

Because people would suddenly have money to buy more products...so their increased spending would....send the economy into a deep recession...because spending money causes recessions.

So we should pay them less...so they can buy fewer goods...and thus boost the economy with reduced spending.

That totally sounds like how capitalism works.

[Curanhadin]

That's awesome! Free market wins over communism. Liberal capitalism-haters will certainly be enraged by this and whenever they're mad it means America is doing the right thing. I'd love to see all unions abolished and union leadership jailed on RICO charges.

So completely wrong. Unions are what built this country, the reason people have the weekend get benefits vacation and all that. Also twinkies taste like shit so who gives a fuck I hope this company goes bankrupt.

[Leandros]

Awesome, Unions are bad. Good for them.

[Cthulhu 2020]

And you read that where exactly? Because the exact opposite would happen. It has been proven time and time again that if the middle and lower classes had more money the economy would be booming.

If the rate of growth of ceo's pay matched the workers. Today workers would be making $200k a year.

Economies of the past were strongest when the middle and lower classes were the most economically fit. It encourages spending and stimulates growth. Continued separation of wealth classes is going to cause further recession and stagnation, and I'm just waiting for when the majority of people wake up and realize this.

[Wells]

Economies of the past were strongest when the middle and lower classes were the most economically fit. It encourages spending and stimulates growth. Continued separation of wealth classes is going to cause further recession and stagnation, and I'm just waiting for when the majority of people wake up and realize this.

Rich people don't buy enough to maintain economic activity on their own.

[Cthulhu 2020]

Rich people don't buy enough to maintain economic activity on their own.

Buying another private jet stimulates growth, that's why having a fleet of private jets gets your taxes bumped down to zero! /sarcasm

[smendou]

Because people would suddenly have money to buy more products...so their increased spending would....send the economy into a deep recession...because spending money causes recessions.

So we should pay them less...so they can buy fewer goods...and thus boost the economy with reduced spending.

That totally sounds like how capitalism works.

Employers cost of doing business goes up because the need to pay higher salaries. Thus they must increase the cost of their goods and services. Those who were making higher than minimum wage are suddenly making closer to minimum wage and thus have their buying power reduced. If the minimum wage jumped to $15 an hour, those people who are already making $15 aren't suddenly going to get a raise to keep them at the same margin over minimum wage in most cases.

[Slummish]

I can't say I know a single one who does.

Then you need to get out and meet some cashiers in Chicago...

[Wells]

Then you need to get out and meet some cashiers in Chicago...

Average pay for a grocery clerk in Chicago is 17k a year total. If I'm reading the site correctly none of them hit 24k

http://www.glassdoor.com/Hourly-Pay/...5,32_IM167.htm

[Cthulhu 2020]

Employers cost of doing business goes up because the need to pay higher salaries. Thus they must increase the cost of their goods and services. Those who were making higher than minimum wage are suddenly making closer to minimum wage and thus have their buying power reduced. If the minimum wage jumped to $15 an hour, those people who are already making $15 aren't suddenly going to get a raise to keep them at the same margin over minimum wage in most cases.

I think an arbitrarily set minimum wage is bad, since many can't afford higher ones. They need to start small and work up, that is the entire spirit of capitalism, starting small and working your way up (which I fully support) but we do need some regulation on the out of control pay separation when they do get huge. Why should a corporation that makes billions of dollars be paying their cashiers ~$8 an hour?

[Sunseeker]

Then you need to get out and meet some cashiers in Chicago...

I guess I do. They certainly don't anywhere else I lived.

Have you considered that perhaps, only the cashiers in Chicago and perhaps their unions are the problems? Not unions everywhere in the country?

Employers cost of doing business goes up because the need to pay higher salaries. Thus they must increase the cost of their goods and services. Those who were making higher than minimum wage are suddenly making closer to minimum wage and thus have their buying power reduced. If the minimum wage jumped to $15 an hour, those people who are already making $15 aren't suddenly going to get a raise to keep them at the same margin over minimum wage in most cases.

Sure, while there's a correlation to an increase in product prices when wages increase, the correlation is not 100%.

There however, is not a reverse correlation. When wages go down, prices do not automatically follow.

[DEATHETERNAL]

And you read that where exactly? Because the exact opposite would happen. It has been proven time and time again that if the middle and lower classes had more money the economy would be booming.

If the rate of growth of ceo's pay matched the workers. Today workers would be making $200k a year.

Read it? Anyone can derive it with a basic understanding of economics.

If worker made that today, either the value of the dollar would be drastically less reducing their buying power to near where it is today OR a huge number of jobs (well above and beyond what are being offshored today) would be being offshored and would have been offshored as the price of labor in America would have become even more prohibitive than it already is compared to cheap foreign labor. Increasing wages to the extent that you describe would only harm the majority of the working class while elevating a select few of the working class to elite status that were good/lucky enough to keep their jobs while others were shipped elsewhere.

[Wells]

Read it? Anyone can derive it with a basic understanding of economics.

If worker made that today either the value of the dollar would be drastically less reducing their buying power to near where it is today OR a huge number of jobs (well above and beyond what are being offshored today) would be being offshored and would have been offshored as the price of labor in America would have become even more prohibitive than it already is compared to cheap foreign labor.

Economics tends to make a fool out of people who use "common sense".

[vindicatorx]

No they wouldn't at all. With people earning more people would actually have money to spend on things. The item prices don't just go up when people make more money. They go up when people are willing to pay $600 for an iphone that only cost $100 to produce.

You expect companies forking out twice as much pay to not increase the price of their product in order to cover the expenses? This is not a hard concept to grasp.

[Wells]

You expect companies forking out twice as much pay to not increase the price of their product in order to cover the expenses? This is not a hard concept to grasp.

Prices are determined by more than overhead. If increasing prices would lower their sales its entirely possible the best option is to eat a lower return.

[Sunseeker]

Read it? Anyone can derive it with a basic understanding of economics.

If worker made that today, either the value of the dollar would be drastically less reducing their buying power to near where it is today OR a huge number of jobs (well above and beyond what are being offshored today) would be being offshored and would have been offshored as the price of labor in America would have become even more prohibitive than it already is compared to cheap foreign labor. Increasing wages to the extent that you describe would only harm the majority of the working class while elevating a select few of the working class to elite status that were good/lucky enough to keep their jobs while others were shipped elsewhere.

Then perhaps instead of competing with foreign slavery, we should, oh, I dunno, not tolerate companies that support such practices?

[Wells]

Then perhaps instead of competing with foreign slavery, we should, oh, I dunno, not tolerate companies that support such practices?

We should focus on industries we can compete on, and end H-1Bs

[BatteredRose]

I commend them for trying to keep costs down.

Maybe now they can afford to take Funny Bones and put real peanut butter in them again and make them amazing.

Link

Edit: Forgot Drake's had been sold off in the liquidation. Dammit all. Guess I still can't buy funny bones.

Previous Hostess big wigs gave themselves big fat raises (among other things that happened). I somehow doubt that helped in the past. Putting all the blame on unions is ignorant.

[Cthulhu 2020]

You expect companies forking out twice as much pay to not increase the price of their product in order to cover the expenses? This is not a hard concept to grasp.

Yes it's so simple to understand! Profit, cost, wages... there's obviously nothing else to economics.

We can allude back to the "Trickle down effect" that was so gloriously proven to be a big fat load of shit. Many of these extremely high wealthy corporations were given tax breaks under the understanding that this would lower their operating costs and allow them to pay their employees more while keeping their prices the same. This was the entire selling point of the trickle down effect and why lowering taxes on the rich was a good thing.

What'd they do?

Kept all that saved money and shoved it into more assets, overseas bank accounts, etc. didn't return it to the employees at all, increased unemployment by laying off more employees while they were making record profits, and threw us into a recession.

There should have been a min wage increase with those tax cuts.