Capitalism as you know it, is at its final frontier. Any more widening of the wealth gap, and it will be a Banana Republic of a 3rd world nation.
A study suggests that higher minimum wages hit poorer bosses’ pockets
- Thread starter OfTheCross
- Start date
Capitalism as you know it, is at its final frontier. Any more widening of the wealth gap, and it will be a Banana Republic of a 3rd world nation.
dora_da_destroyer
Master Baker
There very much are people on this board who believe that...raising min wage to $15/hr is about $32k/yr and there are people on this board who feel that’s not livable, and therefore meaning they expect and even higher salary into the 40’s for basic shyt like cashier...miss me with being a capitalist apologist, I’m a realist who’ll admit zero skill jobs such as that shouldn’t be rewarded by making the the median individual income
Live with the reality that cashiers fighting to gwt pid 40k per year
Ever since those unionized factory jobs got outsourced, those service bases jobs are the only things left. Live with it.
Yes yes yes; slavery, child labor, 18 hour days etc etc. Let's not act like those facets were phased out by a gradual lean towards progressiveness on the part of capital. A war had to be fought to end slavery. People had to die to get these "privileges" from which you say I speak. Those people being part of unions. Unions that have been systematically decimated and vilified over the past 40 years. The protections for labor have been rolled back pretty far and it will continue. As I stated previously, blood had to be shed to get the basics we have now. Capital is going to squeeze the worker until they are working for free if they can. And we are on our way there now. The system will eat itself before that endgame can be achieved though.
So capitalism started off at 0 and is working it’s way back to 0?
Rewarded eh? You really talk like you have a seat at the table.
As far as that being the median individual income, well, that's a free market problem. $40,000 is a lot of money to you? Would you take a $40,000 a year job? The median income is too low. And who are you to determine that someone's wages should be depressed or stagnated at poverty levels anyway? Trust me, there are a lot of people who have highly skilled jobs that make less than you. Maybe your salaries should be swapped. Oh, that's different.
dora_da_destroyer
Master Baker
Yes, being completely unskilled but making what the average worker makes is being rewarded. No, $40k isn’t a lot of money, but given that it’s the median income, it’s a middle of the pack life so it’s clearly enough. I’m for everyone making more money, but best believe I’m not running to the front line for min wage jobs to be first in line for a lifestyle upgrade, I’ll always advocate on behalf of the middle class firstRewarded eh? You really talk like you have a seat at the table.
Please tell me you were playing dumb on purpose.
Small business do not need to advocate or lobby for higher wages. They can just pay higher wages - they have autonomy to do so without legislation.
but they'll never be able to pay as much as bigger corporations unless they start raising capital and using M&A's.
Small businesses naturally pay higher wages to their lowest-level workers because attracting and retaining higher-quality employees is an important part of their business model. They want to build relationships within the local community and build a loyal customer base. Low-level employee retention and satisfaction is important to those goals because product quality and customer service are both very important to the local buyer.
Big business has a completely different business model. They thrive on advertising, name recognition, and cost efficiencies that come with volume. They tend to have a higher % of their workforce at the lowest part of the wage pyramid and tolerate high turnover among those workers because they consider them basically interchangeable. Personal relationships are far less important because customer loyalty is built at the brand level, not at the local level, and any particular employee is going to have little effect on the brand's reputation for product quality or customer service.
Higher minimum wage impacts the cost issues of the big business more than the small business because a higher % of the big business's labor costs are at the bottom of the pyramid. At the same time, higher minimum wage helps the revenue of the small business more than the big business because the employee quality and retention is much more important for the small business model. A
Small businesses do not "naturally" do anything. It depends on the business model/margins and the owner.
Low-level employees are a dime a dozen which is why they get paid minimum wage to begin with and if you
run a low profit/high transaction business then employee attrition should be baked into the business model or
you'll be out of business.
Just because you pay above market doesn't mean those employees will stay with you nor will the customers care.
Consumers want stellar service and fair value. They don't care who delivers it - as long as they deliver it.
An astute business owner will invest in training policies so the delivery is both standardized and optimized
regardless of staff.
Big businesses have access to liquidity that small operations do not. They can pass the increased cost of labor
on to consumers/clients or force suppliers to take a hit in the supply chain. They have much much much much more leverage.
Wow, you seem almost completely ignorant of how small businesses even exist.
The claim that "customers don't care who delivers it" shows that you are very unfamiliar with how small businesses work. Do you live and work for a big company in a big city, I assume? In most of the world people DO care about who they buy something from. All else being equal, they will buy from someone they know and trust sooner than they'll buy from a stranger. They'll be more comfortable asking for advice from Deandre who they've known for 15 years and who knows all the products inside and out than that new kid they've never seen before. It's one of the biggest advantages small businesses have going for them.
And an astute small business owner knows that every time a new worker needs to be trained is a cost, and that you can NOT train them up to peak performance immediately, it takes time to attain it and even more time to convince the customer that you've attained it.
I'm not the one who generalized in the first place. So long as we're speaking in generalizations, mine is the correct one.
Thanks for explaining exactly how big business model works, I'm glad you agree.
It's a quite firmly accepted part of economic theory that higher wages improve performance and increase retention, it's called Efficiency Wage Theory. Of course it's not the only factor, but it's a factor.
The claim that "customers don't care who delivers it" shows that you are very unfamiliar with how small businesses work. Do you live and work for a big company in a big city, I assume? In most of the world people DO care about who they buy something from. All else being equal, they will buy from someone they know and trust sooner than they'll buy from a stranger. They'll be more comfortable asking for advice from Deandre who they've known for 15 years and who knows all the products inside and out than that new kid they've never seen before. It's one of the biggest advantages small businesses have going for them.
And an astute small business owner knows that every time a new worker needs to be trained is a cost, and that you can NOT train them up to peak performance immediately, it takes time to attain it and even more time to convince the customer that you've attained it.
That's a meaningless claim because by that logic big business is in a superior position regardless of minimum wage and could just universally drive all small businesses out of the market no matter what wages they pay. You fail to demonstrate how small businesses could even exist.
yes capitalism does in a sense start at 0 and end at 0. have you not read about marx dialectical. capitalists keep pushing wags low to increase profits but then nobody has high enough wages to buy the goods they produce. capitalism has always produced extreme inequality, always been unstable average crash very 4-7 years, always been exploitative of labor, always relied on imperialism. but this is a system we are told "works" Id love to see a system that doesnt work that must really be hell. and oh yeah its about to destroy the planet. but yeah lets celebrate cause tech advancements that wouldve happened anyway have improved the floor for SOME people in first world countries.
If it seems that way - then perhaps you should file a lawsuit and seek damages from your optician.
Great argument.
That's nice except it's not true. I'd consult some research on Wage Determination Economics.
We live in a globalized digital economy where the consumer has all the knowledge they need through the usage of
search engines. They don't need DeAndre they can confirm from online reviews and conduct research on their own.
It's not 1955.
What you are talking about is initial sales resistance and there are ways to overcome this.
New will always exciting and fresh.
That's how BeyondMeat and all these IPOs gain marketshare from being nothing burger startups.
That's why I said that should already be priced into the business model....
A truly astute small business owner filters out the performers from the tire-kickers BEFORE they are under contract.
Everything from the ad-copy to the interview to the trial-phase should be done with policies for maximum efficiency and optimized regularly.
The advantage small business has is in opening niche markets/innovation and being nimble.
Big business regularly takes out small business either through acquisitions or underpricing.
Another thing that happens is those small businesses become big businesses themselves
through IPOs.
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I'm just gonna let this sit here, it been a while before I remember anyone trying to talk this big and then expose themselves this bad. You are trying to straight Dunning-Kruger Effect your way through ANOTHER economics discussion.