UC Berkeley Touts $15 Minimum Wage Law, Then Fires Hundreds Of Workers After It Passes

[mtangelsfan]

And yet you guys seem completely closed to the slightest possibility that businesses continue to increase prices to pay for everything except their employees.

 

So your solution is to make the prices go up even more.  Maybe stopping the flow of cheap labor coming into the country would help increase wages.

[Jason]

Actually they aren't numbers pulled out of my ass.

http://thinkprogress.org/economy/2015/08/03/3687171/15-minimum-wage-big-mac/

In before "Think progress!!"

And yeah Angels n skins I'm sure the 17 cents will completely deter people from paying. You must be joking.

If people are already pinching pennies,  yes.

[m0nkey]

We should do a survey and have people tell us how much they make.

 

I'm broke but I hate lazy poor people

[Make Angels Great Again]

So your solution is to make the prices go up even more. Maybe stopping the flow of cheap labor coming into the country would help increase wages.

Prices are going to go up a bit regardless of what you do, right? There are more problems here than you can shake a stick at. Tax loopholes, cheap overseas workers etc.

How would eliminating the cheap labor keeps costs from rising? Employers are still gonna end up paying more in the end.

[mtangelsfan]

Prices are going to go up a bit regardless of what you do, right? There are more problems here than you can shake a stick at. Tax loopholes, cheap overseas workers etc.

How would eliminating the cheap labor keeps costs from rising? Employers are still gonna end up paying more in the end.

Cheap labor is the main cause of wages being low.

 

If you have a group of people willing to work for the lowest wage possible, how do others compete with that?  Why do you think the largest corporations in the U.S. are openly for an ease on immigration?  Because they care about poor people?  No, because it saves them money.  It won't stop costs from going up, that is normal.  It will help the stagnation of wages though.

[Make Angels Great Again]

There are plenty of poor people in the US willing to work for scraps too, poor families coming over to the US may add to the wage problem but eliminating that issue sure won't fix it alone.

[mtangelsfan]

forcibly altering it won't help it at all.

[gotbeer]

There are plenty of poor people in the US willing to work for scraps too, poor families coming over to the US may add to the wage problem but eliminating that issue sure won't fix it alone.

 

The neighborhood gardener works for scraps.  Guy is probably the hardest working person on the block.

[Tank]

And yet you guys seem completely closed to the slightest possibility that businesses continue to increase prices to pay for everything except their employees.

 

normal price increases happen all the time, and we all deal with them. but this issue isn't about that.

 

with a significant increase in labor costs, it's going to affect everything else more quickly and more dramatically. the idea that a big mac will only go up seventeen cents is foolhardy. the idea that business owners will accept losing profits is foolhardy. the idea that the guys already making more than $15 an hour will be content to stay right where they are is foolhardy. 

 

you've heard of trickle down economics? well, this is going to be trickle up.

 

and all of those costs are going to be passed on to consumers, who will be spending more of their money for essentials. it's going to have some serious consequences to the big picture.

 

whenever the beginning of the move to $15 an hour happens, go around to see what your usual purchases cost. in a year, check and see what those prices are. and do that every year another dollar is added to the minimum wage. seventeen cents? bwhahahahahaha!!!

Edited April 27, 2016 by Tank

[Stradling]

And yet you guys seem completely closed to the slightest possibility that businesses continue to increase prices to pay for everything except their employees.

Yes like the prices their goods cost them.

[Jason]

Yes like the prices their goods cost them.

No doubt that not only does the restaurant have to pay their employees more, so do their vendors. It's all bad.

[AngelsLakersFan]

So your solution is to make the prices go up even more.  Maybe stopping the flow of cheap labor coming into the country would help increase wages.

 

The gap between our minimum wage and wages in places like Mexico is what drives illegal immigration. Businesses would rather pay a hard working Mexican $8 an hour than an entitled, lazy teenager $15. 

[nate]

Prices are going to go up a bit regardless of what you do, right? There are more problems here than you can shake a stick at. Tax loopholes, cheap overseas workers etc.

How would eliminating the cheap labor keeps costs from rising? Employers are still gonna end up paying more in the end.

Man, you really don't seem to be getting it

[Make Angels Great Again]

That sure means a lot coming from you.

[Stradling]

Just in case you don't get it ALF ill explain it.

Company A sells burgers. Company A now pays its employees more money. Company A cant just raise prices to cover the labor cost. Company B sells meat to company A, company B now has to sell meat for more because it has to pay its employees more. Company C sells feed to company B to feed the cows, company C charges more for the feed.

Ok so now we covered the meat part, kind of.

So do that with buns, lettuce, tomatoes, onions, potatoes, pickles, all paper goods.

Also don't forget all these companies will pay higher payroll taxes as well.

That's the start of it.

[Make Angels Great Again]

So the higher minimum wage needs testing, sure.

 

We'll see how it goes within the next couple years.

[Stradling]

My company will be completely fine. You'll just be paying a lot more for the product.

[Make Angels Great Again]

And I appreciate the explanation Stradling, but I understand that aspect of it.

 

But you surely understand that there are a ton of variables to this whole thing, and I fully admit I don't understand 100 percent how it all would play out.

 

But you all would be foolish to say that it's a failure of an idea right off the bat without even thinking about it.

[Make Angels Great Again]

But then all I want to do is give free money to slackers while giving the finger to hard work, so what do I know.

[Stradling]

And I appreciate the explanation Stradling, but I understand that aspect of it.

But you surely understand that there are a ton of variables to this whole thing, and I fully admit I don't understand 100 percent how it all would play out.

But you all would be foolish to say that it's a failure of an idea right off the bat without even thinking about it.

Ok then I guess I will do what you've done, think about it. See I've thought about it, a lot. I've thought a lot about it because it's my job to understand how things like this impact hiring and training and associate turn over. I've given it a ton of thought and I've come to the conclusion it's not good.

[Stradling]

Yes of course it will Cals. But as a company we will be fine.

[Make Angels Great Again]

Does the higher employee wages and general success have any correlation in cases like costco, in n out and others or just a coincidence?

[Stradling]

We start associates right now at $12 an hour, so I wonder what that looks like when minimum wage is $15, I guess around $17. I wonder if I too will get a 30% raise. Doubtful.

[Stradling]

Does the higher employee wages and general success have any correlation in cases like costco, in n out and others or just a coincidence?

Possibly or even probably. But if you think making minimum wage going to $15 will mean minimum wage earners will automatically be better employees then you'd be crazy.

[wopphil]

Wait, if you'll be charging more for burgers, won't that hurt the purchasing power of the dollar, in turn hurting those whom the $15 minimum wage was meant to help?

At that point we will just raise them to $20 an hour in order to increase their purchasing power.