So this was a necessary fix that didn't take into consideration the greed and vileness of most company owners.
If it's "greed and vileness" that keeps the business open, who's really to blame, especially when it's government regulations and law that creates the need to adjust due to "greed and vileness."
In other words, is it really greedy to keep doors open, or should the employer just shut down for good because they can't afford additional costs such as health insurance payments that they couldn't afford
before the law was in place. The choice given to businesses were: Pay people less and have them work less hours, or go out of business. Which would you choose?
The biggest concern is of course small businesses, not franchises, which are directly impacted by this.
Most franchises
are small businesses. It is more likely to come to a McDonald's franchise than it is to come to a McDonald's corporate restaurant. And the way the franchise agreement is set up between McDonald's and the franchisee is made in a way that you couldn't tell the difference between the two.
There are exceptions to the case (all Wal-Mart stores are corporate owned, for example), but that's generally the way things are.
This is true and I generally agree with the fact that purchasing power will adjust with inflation. That doesn't mean we should just ignore minimum wage increases because of that. A little inflation isn't necessarily a bad thing and if Minimum wage is constantly adjusted to buying power that would resolve that issue. The standard should be about a living wage and while it may be hard to adjust when we start setting that standard it will eventually level out.
Purchasing power and inflation are tied, correct. However,
nominal increases in wages are
not tied to purchasing power. Purchasing power is basically dictated by
real wage increases, such as higher wages due to increased productivity or higher wages due to better skillsets/skilled labor. None of this has anything to do with minimum wage increases, or forced wage increases due to government intervention.
If you want everyone to make a living then even the unskilled jobs need to pay a living wages.
Ok then, let's look at it from your perspective.
Why?
The republican platform has only contributed to putting more money into the hands of the wealthy and disparaging the poor.
Sure, if you only listen to liberal sources. Never mind the fact that wage disparity between the rich and the poor grows more with
liberal policies than they do with
conservative ones.
You can thank hope and change for that.
You are correct, Profit margins is the incorrect term. Large corporations have high profits though and are making a huge surplus of money meaning they can definitely afford to pay their workers higher wages. We can and should use both numbers when evaluating a corporations wealth and their ability to pay their employees more.
I'd hate to link huffpost but focus on the numbers :
http://www.huffingtonpost.com/entry/walmart-wages-15-hour_us_575ec8f4e4b00f97fba8e18dThat "study" has been debunked for months. For one, it assumes greatly and a lot of assumptions are based by guesswork.
For another, there's a whole lot more to wage increases than just a flat increase in wage rates. For example: payroll taxes were not taken into consideration. Another example is the training hours paid were also not taken into consideration. A third example is that it was using a 34 hour/week baseline, which Walmart doesn't do thanks to Obamacare. A fourth example is that it
only assumes that people working
at or near minimum wage will get a price increase, but doesn't take into consideration those who work
between $8.00 to $15.00 and their auto-increases to $15.00. It also doesn't take into consideration those who work slightly over $15.00, as they will demand a pay increase or walk (warehouse workers, truck drivers, middle management, so on).
That "study" has a
lot of flaws to it, and the additional labor costs taking
all considerations into factor will be greater than the purported $10.18 billion they claimed.
Also, they read the financial statements wrong. Which isn't a huge surprise either. Walmart's net income was just over $10 billion, not just under $15 billion, as shown
here. Which is 2.1290%, again not a huge margin.
If they paid each employee 15$ an hour (5 more than their current average of 10) they would end up taking about 10.18 billion dollars off of their net income. This would bring the net income down to 4.69 Billion dollars before we consider how these families will have more money to spend AT walmart. While that may have a low margin % it is still a hefty sum of money.
Actually, even going by their own supposed incorrect analysis, they would barely break even. Going by real numbers, paying $15/hr. would create losses, and a lot of them.
Considering that these large businesses are the ones that hire a large amount of employees at minimum wage, these are the corporations we should be focusing on.
Nope, not even close
If all the companies raised their minimum wage then wouldn't they be on a level playing field? This is all just speculation that Seattle clearly disproves.
Let me ask you this then: Should a carpenter be paid the same rate as a burger flipper?
Should a CPA be paid the same as a janitor?
Should a lawyer be paid the same as a cashier?
Except all of your statements are just a presumptuous as mine, if anything I've at least provided evidence that all the negatives you claim doesn't happen.
I'm glad you do.
And I counter your evidence showing where they are wrong.
You also have to understand that I am arguing, in part, on an ethical standpoint which in that case it isn't speculation.
Ethics aside, we have to face reality. When faced with a tough situation, do you fire 2 employees/reduce 40 people's hours or have to close down the entire business and end up firing 50?
It's not a matter of what people do to make themselves feel good. It's about survival for most of these businesses. Hell, even Walmart needs to survive against other stores (Target, Costco, local varieties to name a few) and cannot afford to pay people $15/hr and expect to stay in business. Which, if they go out of business, you are looking at 1.5
million people unemployed. Is that really worth it to make some people feel good for a couple of years?
I'm trying to understand other viewpoints though and its because of my open-mindness that my opinion on minimum wage laws has changed.
It's not open-mindedness you are doing. You are just as set with your opinions as mine. We are basically going back to the basic argument of "feels vs. reality."