Posted by benefit? on August 14, 2006 at 15:05:32 (EST):
In Reply to: Re: Daily expenses posted by Joe on August 14, 2006 at 10:06:03 (EST):
: : : : : : hmm... so what you're saying is, its the govt's fault for raising the minimum wage, but not corporate america for continually raising prices with or without the raising of minimum wage?
: : : : : : sounds like you tards are bitching about the wrong ppl.
: : : : : Yup, what are you talking about? Prices rise when costs rise. If you raise the labor, that will increase the costs and thus the price. No one is bitchin about the government or corp america here. I just wanted to see if people beleive it's okay to pay a high schooler $7 to mop floors or make food. Everything you want will rise accordingly. Is that okay with you or do you find it absurd to pay $7 to someone without any skills? Hypothetically, it's a 39% increase in McD's payroll add $2/hr to minimum wage, your big mac meal should go from $5 to $6.95. It's about $5, but anyway, that sucks, for everyone, especially those of you now making $7-8/hr, you'll be back down a few rungs in the coming years.
: : : : Just because the minimum wage goes up $2.00 an hour doesn't mean a meal will go up $2.00.Some things might go up $.20 cents or so.The number of employees doesn't equate with the number meals sold each day. You are right though, the people making $7-8 an hour will hurt a little more so the only thing to do is to find a job that pays more, easier said than done, right?
: : : : Even making $7-8 an hour one would be hurting. If married with a family you would have to be taking advantage of any assistance available. If single and at home, stay on the good side of mom and dad, you may be there a long time.
: : : The minimum wage has increased before and people and small business did survive and will again if it increases.
: : It's a percentage genius. If you raise the costs by 39%, the income must rise 39%. All things being equal, the price must rise to 6.59 if it started at $5. There is another option, cut back on payroll. Less hours at $7.15 than before at $5.15. Safe to assume that sales won't increase 39% when the wage does, so if sales are relatively constant, labor increases, price must as well.
: : Consider this, McD's payroll is $500K we'll say, and sales maybe at $2.5 million for our beloved franklin village store. That's a 20% payroll margin. Increase payroll by 39% to $695K. Where does it come from. The average franchisee in the U.S. clears at best 10% of sales. If they clear $250K/yr, where does the $195K increas come from. Not them, they deserve the $250K they make. You'll be paying that 39% increase or hours will be scaled back and less people will do more work. There's just no other way to do it. Businesses are in business to make money, not just to provide jobs.
: Business can cut payroll by cutting employees or cutting benefits. First, I believe some of the people at McDonalds make more than minimum wage now so everyone will not be included in that pay raise . Also just becuse there is a as you say 39% increase in salaries doesn't mean each hamurger or meal will increae 39%. They would adjust prices on all their products to come to a total of the 39% increase, a salad may go up 50%, a hamburger 20%, or whatever; all they have to do is get to that 39% salary increase in any way they choose. It could also mean cutting hours in non-peak times, making the food items a little smaller, using less of this or that in the recipe.
: For the small amount of people that would be affected in Armstrong County , I don't see where it is that big of a problem. The restaurants don't pay minimum wage, the go on tips and maybe a very small base,it is something small business owners are going to have to put up with .
: But you are right, a raise in salary equates to a price increase, but as we see everyday, prices have been increasing without raises in salary. Wage costs are not the only thing that raises product costs.All I am saying is the $5.15 worker needs a raise if someone gets laid off or someone has to suck it up a little , so be it.
Exactly, when costs rise, prices rise. You admit it. They've been rising all along because the food costs rise. Milk makes cheese, cheese goes on your taco, your burger, your pizza. If they pass the costs, or cut the hours, my point is that it's not the great save so many think it is. Most would agree I think.
Also, were not talking about a mom or dad here every time. Many argue that these jobs are irrelevant. Many sneeze at restaurant jobs like their not substantial enough to make a difference. Then some argue they deserve more money. What's the answer? I don't personally think they deserve more. Many don't deserve the current mimimum. Sad but true.