Minimum Reality

“You can’t have the same number of job opportunities in the restaurant industry and have a $15 minimum wage. These things can’t co-exist,” said Employment Policies Institute worforce scholar Michael Saltsman, whose think tank ran a full-page ad in the Wall Street Journal depicting a robot making pancakes with the title, “Why Robots Could Soon Replace Fast Food Workers Demanding a Higher Minimum Wage.” (DC)

Neil Boortz: Mr. Activist guy had the idea that if McDonalds would just pay these workers $15.00 an hour plus health insurance and all of the other benefits then the world would be a better place and the workers would not have to rely on the government for all of these welfare services and everyone would be better off. Nobody asked him how much a Big Meal would cost if the people preparing that culinary delight were paid $15.00 an hour plus benefits. Right now you can get a Big Meal for about $7.25 The person preparing that meal is probably making minimum wage. Boost the wage by about $6.00 per hour and what is the new cost for a Big Meal? $8.50? $10.00? More? Can all of the McDonald’s customers afford this price increase? Or do they go to other, cheaper fast food restaurants? Can McDonalds maintain their profit margin and employment level with lost sales? If not, how many $15 an hour workers do they lay off? Perhaps they would just close some stores in low-income areas altogether.

How about this question for the organizer: “Hey, sport. Tell me something. What obligation does McDonalds have to pay a worker more than that worker is worth? Are you telling me that an employer should hire someone just to pay them more than the wealth they can produce for the company out of some sense of social obligation? How long do you stay in business doing that?” Organizer dude probably would have come across with some statement about “social responsibility.” Well, guess what? If employers start to determine wages on what the employee wants instead of what that employee produces we will see a lot of boarded businesses and many more unemployed government-educated functionally illiterate Democrat voters. Wait! …… What?

Where DO mindless people like this come from? Oh yeah. Government schools. Almost forgot.

And SEIU, Obama Union thugs, masquerading as “employees” picketing McDonalds and the like in New York. Buig surprise there.

You made a point of saying that McDonalds should pay you enough to support your family. Fine. Then answer MY question. What about YOUR responsibilities? Did you not understand that you lacked the skills, job history and education necessary to make more than a minimum wage and that; therefore, you might not be in a position to shoulder the cost of an additional member of your household? Or is it your belief that all you have to do is download a child and it automatically becomes someone else’s responsibility to cover the costs? I think a valid case can be made for the proposition that one of the greatest social wrongs a person can commit is to have a baby they simply cannot afford to raise.

Personal accountability and responsibility is dying. Long live the Democrat welfare state.

NY Times: A half-century ago, the marchers called on Congress to increase the minimum wage from $1.15 an hour to $2 “so that men may live in dignity,” in the words of Bayard Rustin, one of the chief organizers of the march. Today, the fast-food workers also seek a raise, from the $9 an hour that most of them make to $15.00 an hour. That’s not much different from what the marchers wanted in 1963; adjusted for inflation, $2 then is $13.39 an hour today.

But what they aren’t saying is, that the minimum wage in 1963 was almost exactly what it is today, based on inflation because in 1963 it was $1.25, and now at $7-$8 with inflation is about the same amount and level. No real change. It’s still MINIMUM for a reason. So by using $2 they are being dishonest. Gee, what a shocker that is!

The skill set hasn’t improved, so the job’s wages haven’t either.

Forbes:

The strikers are targeting their employers — profitable companies like McDonald’s, Yum Brands (which includes Taco Bell, Pizza Hut and KFC) and Wendy’s.

Almost none of the fast food workers are employees of those companies. For the way the industry works is that the main company contracts with franchisees who run the actual stores. The employees are then the employees of those franchises.  THE SMALL BUSINESS MAN! There is no employment contract at all between the worker and those large companies: and those companies cannot determine the wages the workers get either. To get that sort of thing wrong in an editorial in the NYT is near unforgiveable. What’s worse though is that they’ve entirely failed to understand the economic points being made in this debate.

Media Matters can help us out here though through their own refusal to understand what is actually being said:

Contrary to industry officials’ claims, economic studies have concluded that raising the minimum wage has no effect on employment.

No, that’s not what economic studies have concluded. Rather, they have concluded this:

In a Center for Economy and Policy Research report titled “Why Does the Minimum Wage Have No Discernible Effect on Employment?” senior economist John Schmitt determined that there is “little or no employment response to modest increases in the minimum wage.”

“Minimum wages have no effect on employment” and “modest increases have little effect” are just not the same statement. And do note that the current demand is for a more than doubling of the minimum wage: something that we cannot describe as modest.

Syracuse.com commentor: Here is the point of view of any successful businessman. If you artificially force me to pay more for a worker than his job is worth, I will either shut down the business, figure out how to do the job with fewer workers, outsource it to lower my costs (for benefits, like health care), or figure out how to automate it. Fast food work is vulnerable to any or all of these solutions. What good is a mandatory higher wage for a job if the job no longer exists?

But reality doesn’t play into the Class warfare rhetoric and hype of the Left.

One liberal even called the Minimum Wage, “slave labor” so rational thought is not present on the Left.

We witnessed it between 2007 and 2009, when the federal minimum wage rose 41 percent and had a disastrous effect on youth employment. The joblessness rate for 16-19 year olds increased by 10 percentage points from 16 percent in 2007, to more than 26 percent in 2009. While some politicians claim that workers benefitted from the minimum wage hike, if you were to ask the 8.8 million workers who lost their jobs during the economic recession, I bet you’d get a different answer. It’s no secret that when you raise the cost of doing business, or in this case hiring workers, business owners have to find a way to trim their expenses and meet their bottom line. (Steve Cruz)

But the Let’s Agenda is deaf to reality. After all, if at first you fail, fail, fail again, because it  is obviously someone else’s fault for your failure! 🙂

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