Monday, July 7, 2014
To the Mezzanine, Please
When the minimum-wage was practically doubled in 1949 (from 40 cents an hour to 75 cents an hour), not all of the manual elevator operator jobs disappeared immediately but, yes, within a couple of years they were all pretty much gone. This is what happens, folks, when the government tries to meddle in the price of things. In this instance, the technology (automated elevators) had been there prior to 1949 but because it was still cheaper to use human beings that's what they used and it wasn't until the government raised the price of labor by 87.5% that the machines became cheaper. Yes, of course, these jobs would have eventually gone away anyway, but just try telling that to the poor bastard who got a pink slip in 1951. I'm positive that the dude would be more than happy to thank you..............................................................................................P.S. And mark my word, if this 38% increase in the minimum wage that the President wants ever goes through, you just might be talking to a tablet or computer the next time that you order a Whopper or a Big Mac (we're already seeing it in grocery stores). Cheers.
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25 comments:
There are at least two major league ball parks who are going to install self serve beer machines.
The last time I was in Japan I noticed vending machines selling everything from food to alcohol to underware....and their economy has been in the shitter for almost 20 years.
The minimum wages tells thousands (or more) workers they are better off jobless than earning a fair wage in proportion to their work or skills, when the value of that wage is relatively.
And how many stimulus packages have they had, Russ, 10-12? Yet another Keynesian success story, eh?............You're familiar with the Samoan story, right, dmarks; the fact that they hiked the minimum wage and thousands of jobs ended up leaving? And let us not forget President Hoover and his wage supports of the early '30s. Those didn't exactly work out, either.
Yea Will.....Starkist tuna bailed on the Samoan economy....only the largest employer on the island.
The ballparks need coin beer taps at every seat!
Exactly. The minimum wage backers assume that employers are sitting on massive amounts of money to shovel out on this.
And if the fast food worker wage hike protesters get their way? McDonalds won't sit still and pay each worker $10,000 or $20,000 per worker in an unearned handout per year. They will be forced to have a far fewer workers.
The facts are that the people, if any, who are displaced by an increase in the minimum wage will end up with a higher paying job. Multiple studies have showed that an increase in the minimum wage has a negligible impact on the unemployment rate.
People have been displaced by technological improvements which have made machine labor cheaper than human labor throughout history. And you know what? People end up with a higher standard of living, not unemployed and living off the government.
Those studies are flawed, Jerry. It is a basic principle of economics that the more expensive that something is, the less that businesses and consumers buy of it. And if an person has a marginal revenue product of $8 an hour, he isn't going to be hired at $10 or $15 an hour. That would be economic suicide.............And I fully agree with you on technology. The people who didn't? Try, the unions who consistently tried to scare the public into thinking that machines were going to take their jobs.
And if the minimum wage has no deleterious effect on the economy, why be so damned skinflint about it? Why not raise it up to $100 an hour so we can all (the 99%ers at least) reap the rewards?............And what about the people already making $10.10 an hour legitimately? How in the hell is this draconian measure helping them?
Yeah, that was the one, Russ, and I really hope that the do-gooders feel proud of themselves about it.............You know what, dmarks, I really think that Mr. Obama needs to open a history book and study what President Hoover did in response to the depression and hopefully garner a lesson or two from it (doubtful in that the dude appears every bit as stubborn as his predecessor).
Isn't the earned income tax credit superior in every way to the minimum wage?
Why oppose such a replacement?
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About Starkist, what happened? Did the US government prevent the company from employing workers there at a fair wage, and basically strongly encouraged it to go elsewhere?
IMO Obama could care less what anyone makes per hour,all he wants to do is pander to the left.
Most on the left are clueless what profit margins companies operate at. By far, the majority of supermarkets operate at a profit margin of less then 2%.Throw a minimum wage increase at them and watch food cost rise.
Don't know if minimum wage is the culprit, but I haven't seen an MD in years..just PAs and NPs. As for
dmark's oft stated 'fair wage', IMO it is the minimum the employer can get away with: depends on available labor.
Example: LeBron James-pretty rare and clearly worth big $$$. But not if he is mowing my lawn.
Are you suggesting we stop further automation, innovation, and productivity and efficiencies and return to 1950 technology?
Perhaps you should read this "flawed article".
Rusty,
Your ignorance is showing. Most supermarket workers earn above minimum wage, some considerably above.
BB: I am not sure my earlier comment took. But anyway:
"As for
dmark's oft stated 'fair wage', IMO it is the minimum the employer can get away with: depends on available labor."
It is definitely a fair wage, since both the employer and employee agree on it. And not only is it the minimum that the employer can get away with, it is also just as much the most the employee can demand... it is the mutual agreement point between the two.
Call me what you want but I noted that you did not dispute what I said about the salaries of supermarket workers.
Rusty: Clearly some think that the wage level should have no relation to the value of the work done... and apparently are upset with the idea that pay should be earned, and raises obtained by improved, more valuable work.
Jerry...do you actually think the teenagers bagging groceries,sweeping the floors and stocking shelves are making better then minimum wage? Do you actually think those jobs are worth 10 bucks an hour? If you do...how is the weather in OZ today.
It is not a matter of what I think. It is a matter of fact. Try looking it up.
You are beginning to sound a lot like you asshole buddy WD.Pick every nit.....waste of time Jerry
My point Jerry was people of your ilk think nothing of raising the minimum over 30%. You folk cannot grasp nor do you care that businesses who operate on low profit margins would be adversely affected by adding 30% to their labor cost.
It was not nitpicking, Rusty. Your example was flat out wrong. If you are going to demonstrate your point with an example, use a true example to make your point. An invalid example, negates your point completely.
Picking nits are your only retort.....and its very childish Jerry.
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