Minimum Wage

Discussion in 'Too Hot for Swamp Gas' started by bakaduin, Jul 17, 2013.

  1. secgator
    Offline

    secgator Well-Known Member

    Joined:
    Sep 1, 2007
    Messages:
    10,808
    Likes Received:
    362
    Trophy Points:
    83
    Ratings Received:
    +1,050
    Just to note--I wasn't referring to you obob as the libs in my comment to bill, but to libs in general in their way of thinking that raising min wage is the problem solving answer--which anyone in the actual, cold, hard, non-textbook real world. Min wage goes up.....prices go up accordingly, regardless of what any books tell you. I've watched it happen in every single business I have been involved with, whether an actual retail business or as a manufacturer/rep/agent working with retailers over the last 40 years firsthand.

    That fact has not, nor will it ever change. Raise labor costs and prices will follow--etched in stone.
  2. wgbgator
    Offline

    wgbgator Sub-optimal Poster Premium Member

    Joined:
    Apr 19, 2007
    Messages:
    23,885
    Likes Received:
    492
    Trophy Points:
    83
    Location:
    Orlando, FL
    Ratings Received:
    +2,180
    I think the basic point being that raising minimum wage may raise prices, but it doesnt result in dollar trading, necessarily. Just like raising taxes. Because, competition.
  3. orangeblueorangeblue
    Offline

    orangeblueorangeblue Well-Known Member

    Joined:
    Apr 8, 2007
    Messages:
    57,052
    Likes Received:
    595
    Trophy Points:
    113
    Ratings Received:
    +2,878
    Ah, but, you missed the important mitigating factors in these and other studies on business reactions to minimum wage raises:

    You will never see a commensurate increase in prices because markets and competition won't allow it. Thus, when minimum wage goes up, prices tend to rise slightly but not at anywhere near the same rate as that wage increase.

    There are hard costs and soft costs - those businesses who shift the soft costs moreso than prices tend to win.

    In other words, you are bound to two things, ultimately:

    1. What your customers will pay. Your hard and soft costs have no impact on this.

    2. What your competitors are able to do to undercut you
  4. channingcrowderhungry
    Offline

    channingcrowderhungry Well-Known Member

    Joined:
    Apr 3, 2007
    Messages:
    5,186
    Likes Received:
    278
    Trophy Points:
    83
    Location:
    Bottom of a pint glass
    Ratings Received:
    +1,132
    From an economic standpoint it really depends on the elasticity of the good you are selling. If you can pass the buck you will. If not you won't; and your business will suffer from it.
  5. g8orbill
    Offline

    g8orbill Gators VIP Member

    Joined:
    Apr 3, 2007
    Messages:
    73,718
    Likes Received:
    5,332
    Trophy Points:
    113
    Location:
    Clermont, Fl
    Ratings Received:
    +11,558

    which is why when min wage goes up so do all these costs so you have to raise your prices to maintain your profit margin
  6. orangeblueorangeblue
    Offline

    orangeblueorangeblue Well-Known Member

    Joined:
    Apr 8, 2007
    Messages:
    57,052
    Likes Received:
    595
    Trophy Points:
    113
    Ratings Received:
    +2,878
    Again, costs DO go up and prices DO go up but not at nearly the same rate.
  7. g8orbill
    Offline

    g8orbill Gators VIP Member

    Joined:
    Apr 3, 2007
    Messages:
    73,718
    Likes Received:
    5,332
    Trophy Points:
    113
    Location:
    Clermont, Fl
    Ratings Received:
    +11,558
    do you own a business obob that is affected by min wage
  8. orangeblueorangeblue
    Offline

    orangeblueorangeblue Well-Known Member

    Joined:
    Apr 8, 2007
    Messages:
    57,052
    Likes Received:
    595
    Trophy Points:
    113
    Ratings Received:
    +2,878
    Everyone who owns a business is affected by minimum wage. We do not have any minimum wage employs, though, if that's what you're asking.
  9. neisgator
    Offline

    neisgator Belligerent Gator

    Joined:
    Apr 9, 2007
    Messages:
    10,618
    Likes Received:
    106
    Trophy Points:
    0
    Location:
    Quincy IL
    Ratings Received:
    +106
    I own 3 businesses. If min wage goes up two people will lose their job. Assuming it goes up more than 25 cents
  10. g8orbill
    Offline

    g8orbill Gators VIP Member

    Joined:
    Apr 3, 2007
    Messages:
    73,718
    Likes Received:
    5,332
    Trophy Points:
    113
    Location:
    Clermont, Fl
    Ratings Received:
    +11,558
    min wage already goes up in the State of Florida every jan as it is tied to the cpi
  11. neisgator
    Offline

    neisgator Belligerent Gator

    Joined:
    Apr 9, 2007
    Messages:
    10,618
    Likes Received:
    106
    Trophy Points:
    0
    Location:
    Quincy IL
    Ratings Received:
    +106
    Sucks for Florida business owners.

Share This Page