Living wage advocates, how are restaruant owners supposed to deal with being squeezed like this?

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Yes, for 99% of the population there is a direct link between hard work, good decisions, and being well paid. The 1% are hedge fund babies, those that inherited their wealth, or the one in a million that makes it from poverty to riches. Hard work and good decisions don't guarantee success but they do drastically increase your probability for success.

I have no problem with excessive executive pay. Thats determined by the Board of Directors that represent the shareholders interests. The BOD are the only ones that can/should complain about pay. If they feel they are paying their executive too much, they'll slash his pay or his job. Same applies to golden parachutes. I personally don't really support giving someone millions for fukking up my equity position, but thats where the board comes in. Enough shareholder rage can replace board members and the interests that they bring. It takes a LOT to manage a big corporation. Its not easy and the pressure is immense. To even get the opportunity to be placed in that position means that you've done a lot of work to get there. Sure, theres the outliers like a CEO retiring and letting his son take over or something along those lines but for the most part the people being offered CEO positions have earned them. With great responsibility comes great pay. I own a small business and am a partner in another business. If someone told me that my pay was capped I'd laugh in their face. I built this up and I will reap every single benefit from it. Same with the CEO just in a diff environment. They usually busted their asses and put in the time to get to that spot. Why give anything up?

To be blunt, lower income people have almost no power. When you rely on a company, government, or someone else for your well-being then you are not in a position to make rules or make moves. You are at the mercy of those higher up. As a CEO, the only people above you are the BOD so thats the only risk to your well-being. Thats why everyone strives to build wealth and power in a capitalist society. When you have your own wealth or can provide work for yourself, then you are "free" to do whatever you want. If you rely on a corporation for your paycheck, you'll NEVER have true freedom. Money, power, respect is the key to life.
@Swavy Karl Marx would call you a selfish b*stard :dead:
 

88m3

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I don't think so. They are lower class IMO. MW is about $7 so thats 15k annually. Even if it were 15/hr thats still only 32k or so annually. I wouldn't say thats middle class, at least not in any populated areas.

Edit: You said household. So double each number. It would still be lower class for $7/hr. It would be middle class at 15/hr. Though if the baseline is now 15/hr, I think the median number to be in the middle class would rise as well thereby wiping out whatever class gains were made. This would also dilute the current middle class.

Is that a bad thing? If the purchasing power of the middle class decreases it just goes somewhere else, right?
 

tmonster

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I dont wanna put u on ignore breh, but I already respecfully told you not to quote me
:mjlol:










































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:russ:
 

Misanthrope

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Its all tied together actually. I mean, most people in here are caping for MW workers while completely ignoring the middle class. You're talking about raising the floor for MW but theres no talk about that same floor being raised for the middle class. Are we just magically believing in trickle UP economics now or something? We just saw the problem that a double up in MW can cause with that Gravity company in Seattle. The entry level people are ecstatic that they are making "bank" now. The mid-level workers and some senior level are pissed off and have left the company because they didn't see any (or a comparable) pay bump.

That's not a fair comparison. Gravity went to a $70,000/year salaried minimum. That's $35/hour, 40 hours a week, 50 weeks a year, not the $10-15 people advocate for.

Also this entire argument ignores the fact that many workers are not allowed to work forty hours a week. Fully 18% of workers work less than 35 hours/week, and those part-time workers average 25.9 hours/week.

Ratio of Part-Time Employed Remains Higher Than the Pre-Recession Levels - dshort - Advisor Perspectives
The average work week is now 47 hours
[read down to the second chart]
 
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Camile.Bidan

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I agree with this, but obviously markets are not ultra efficient. Furthermore, we have to consider the financial toll these low wages take on societt. There is an approximate true cost of labour... I.e the rate at which a worker can maintain living conditions adequte to continue employment. Thats where the subjectivity goes is injected in to it. If the workers cant afford basic food or shelter, then the company paying those wages is having that cost subsidized.


Fair point. Subsidized living costs may lower wages for employers as employees would be willing accept less.


Fair point on the externalities of minimum wages as well. I agree. In theory it would appear that workers may result to crime or violence if wages are too low. However, the suburbs of France seem to show that criminality and violence persist even under a living wage.


My overall annoyance with living wage advocates is that they imply that their is free lunch--there are no costs associated with increasing minimum wages.

Most living wages advocates hate tipping and also hate high menu prices. Myself, I tip generously and pay a lot to eat out.


I don't mind a living wage if there is an overall consensus that the costs are worth it. That analysis is never performed.

I also believe that, morally, their should be a living wage because I believe genetics and heredity account for 60-70% of someone's life outcome. Hard work and discipline can only get someone so far. There are environmental and genetic limits placed on all of us. The living wage can counteract this inherent unfairness. And to me, the high costs are worth.



I don't believe a living wage is a "right" and the unfortunate are owed something. It's a compensating handicap for those born to unfortunate circumstances.
 
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Dev2103

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raise prices and pass it on to the consumer and hope people patronize because they respect the fact that they're not paying slave wages and workers no longer have to rely on govt subsidies to survive. i would patronize they just need to advertise what they're doing. it's not like people aren't generous(look at crowdfunding) and dont want to see these kinds of businesses succeed, just have to work harder. well paid happy work environment with low turnover will be better for business and morale. i guess you just have to attract the right people with disposable income to your place so then location becomes everything. im empathetic to the small business but with the wage disparity in corporations it's inexcusable. me footing the bill through subsidies because they underpay their workers is just another of many examples of corporate welfare.
 
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The Maverick

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I'm recently finding that it's not possible to have a conversation about the minimum wage with people. There's been a great job done on the collective American psyche to the point where people are content with arguing against their own interests, even on the Coli. Let's get started.

1. "But businesses will close down if the minimum wage is raised." And? “No business which depends for existence on paying less than living wages to its workers has any right to continue in this country.” That's a quote from FDR, who passed the initial minimum wage back in 1938. And when he said a living wage, he didn't mean living in a box eating a can of tuna, he meant a decent living. If a business can't afford that, then they are a net negative to our society. And when they fall, another will fulfill the needs of the marketplace. That's how capitalism goes.

2. "If the minimum wage is increased, workers will be fired." There's no statistical evidence linking a raise in the minimum wage and unemployment, but I'll entertain the argument. Do you really think Wal-Mart is keeping on more staff than they have to out of generosity? You really think that small business is paying staff to do nothing all day? Businesses already keep the exact amount of workers they need to operate, no more, no less. A raise in the minimum wage is not going to change the bare amount of workers necessary to keep a business running. And if a company wants to dip below that and let their customer experience suffer, well they probably wont be around for long.

3. "Fast food workers will be replaced by workers." Really? This is going to happen irregardless of the minimum wage. The day it becomes more cost-efficient to have automation in storefronts is the day it will happen. We're talking about companies who exist to pursue higher profits. Whatever accomplishes that goal is in play, including replacing human workers. Automation is coming either way. This is a posturing technique to stall against companies paying a living wage.

4. "But I went to college for xyz number of years, why does a burger flipper get to make more than me?" Let me tell you a secret. Most Americans aren't getting paid what they should. Gasp, I know. If one personally thinks burger flipping is so easy, that's when they go to your boss and tell him to give you a raise or you're leaving for a less difficult job. It's called having leverage. If an employee possesses skills which are valuable, those skills will continue to hold value. As a matter of fact, workers with distinguished skills will be more valuable due to their scarcity, and the market would correct itself in terms of how that translates in a monetary form.

5. "Such and such country doesn't have a minimum wage, why should we!" Some countries don't have a minimum wage and function well because they are smart enough to have collective healthcare, cheap education, a more even distribution of wealth, and housing that isn't out of control. Until America chooses to adopt all of these things, it's necessary to make up the difference in a minimum wage raise that can address the costs of living in this nation. After all, we are the greatest nation on Earth, no?


There's a lot of other things that I could address, but what's the use. Most people don't even care to look at the situation objectively and evaluate what's best for society long term. We're fukked until then. :francis:
 

kevm3

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I'm recently finding that it's not possible to have a conversation about the minimum wage with people. There's been a great job done on the collective American psyche to the point where people are content with arguing against their own interests, even on the Coli. Let's get started.

1. "But businesses will close down if the minimum wage is raised." And? “No business which depends for existence on paying less than living wages to its workers has any right to continue in this country.” That's a quote from FDR, who passed the initial minimum wage back in 1938. And when he said a living wage, he didn't mean living in a box eating a can of tuna, he meant a decent living. If a business can't afford that, then they are a net negative to our society. And when they fall, another will fulfill the needs of the marketplace. That's how capitalism goes.

2. "If the minimum wage is increased, workers will be fired." There's no statistical evidence linking a raise in the minimum wage and unemployment, but I'll entertain the argument. Do you really think Wal-Mart is keeping on more staff than they have to out of generosity? You really think that small business is paying staff to do nothing all day? Businesses already keep the exact amount of workers they need to operate, no more, no less. A raise in the minimum wage is not going to change the bare amount of workers necessary to keep a business running. And if a company wants to dip below that and let their customer experience suffer, well they probably wont be around for long.

3. "Fast food workers will be replaced by workers." Really? This is going to happen irregardless of the minimum wage. The day it becomes more cost-efficient to have automation in storefronts is the day it will happen. We're talking about companies who exist to pursue higher profits. Whatever accomplishes that goal is in play, including replacing human workers. Automation is coming either way. This is a posturing technique to stall against companies paying a living wage.

4. "But I went to college for xyz number of years, why does a burger flipper get to make more than me?" Let me tell you a secret. Most Americans aren't getting paid what they should. Gasp, I know. If one personally thinks burger flipping is so easy, that's when they go to your boss and tell him to give you a raise or you're leaving for a less difficult job. It's called having leverage. If an employee possesses skills which are valuable, those skills will continue to hold value. As a matter of fact, workers with distinguished skills will be more valuable due to their scarcity, and the market would correct itself in terms of how that translates in a monetary form.

5. "Such and such country doesn't have a minimum wage, why should we!" Some countries don't have a minimum wage and function well because they are smart enough to have collective healthcare, cheap education, a more even distribution of wealth, and housing that isn't out of control. Until America chooses to adopt all of these things, it's necessary to make up the difference in a minimum wage raise that can address the costs of living in this nation. After all, we are the greatest nation on Earth, no?


There's a lot of other things that I could address, but what's the use. Most people don't even care to look at the situation objectively and evaluate what's best for society long term. We're fukked until then. :francis:

It's amazing to me people are arguing against their own benefit and the benefit of the nation. Wages have been stagnant for a LONG time, and yet the price of everything continually goes up. I remember getting a combo was 5 dollars, and now its at a minimum 7 dollars, if not 8. Gas tripled since the 90s. So many things have shot up in price and yet companies have been doing their best to CUT compensation packages and lower wages through various means, so if the trend continues, we're essentially headed towards 3rd world status. What's common in 3rd world countries. Is it a robust middle class where most are getting paid fair wages? Nah, it's a situation in which there are super elite and then a vast underclass getting paid an amount so small that they can never save enough to pull themselves out... and this is the future some people are arguing for as long as they feel they are 'above the fray'. Somehow companies are making tons in profits and they pay CEOS millions in bonuses alone, with elaborate golden parachute clauses, and yet somehow they can't pay workers.

Some guys think that this is fine as long as they get to remain in a higher crust than the serfs. As long as they have their 50k+ job, they don't care what happens to those 'crusty burger flippers'. Little do they know, their little 'knowledge' jobs won't be safe for long once companies start importing more and more foreign labor in or allowing their jobs to be done in foreign via remote technology.
 
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