Collarspace Discussion Forums


Home  Login  Search 

RE: I just did some calcs on the national debt clock


View related threads: (in this forum | in all forums)

Logged in as: Guest
 
All Forums >> [Community Discussions] >> Dungeon of Political and Religious Discussion >> RE: I just did some calcs on the national debt clock Page: <<   < prev  1 2 [3] 4 5   next >   >>
Login
Message << Older Topic   Newer Topic >>
RE: I just did some calcs on the national debt clock - 7/8/2009 6:20:50 PM   
servantforuse


Posts: 6363
Joined: 3/8/2006
Status: offline
What do you think it would cost to eat at a McDonalds if they suddenly had to double the wages they paid from around $7.50 an hour to $15.00 ? Another question. Why should they have to pay $15 an hour for a job that is basically unskilled ? Do you want fries with that ?

(in reply to LookieNoNookie)
Profile   Post #: 41
RE: I just did some calcs on the national debt clock - 7/8/2009 6:32:50 PM   
Sanity


Posts: 22039
Joined: 6/14/2006
From: Nampa, Idaho USA
Status: offline

And what about the semi-skilled guy who's hauling in 15 an hour now. Suddenly he's only worth the same as some punk kid who is only starting his first job at McDonalds?



quote:

ORIGINAL: servantforuse

What do you think it would cost to eat at a McDonalds if they suddenly had to double the wages they paid from around $7.50 an hour to $15.00 ? Another question. Why should they have to pay $15 an hour for a job that is basically unskilled ? Do you want fries with that ?


_____________________________

Inside Every Liberal Is A Totalitarian Screaming To Get Out

(in reply to servantforuse)
Profile   Post #: 42
RE: I just did some calcs on the national debt clock - 7/8/2009 8:15:56 PM   
LookieNoNookie


Posts: 12216
Joined: 8/9/2008
Status: offline
quote:

ORIGINAL: servantforuse

What do you think it would cost to eat at a McDonalds if they suddenly had to double the wages they paid from around $7.50 an hour to $15.00 ? Another question. Why should they have to pay $15 an hour for a job that is basically unskilled ? Do you want fries with that ?


(Haven't got a clue what they would charge).

(Don't altogether that much care either).

(in reply to servantforuse)
Profile   Post #: 43
RE: I just did some calcs on the national debt clock - 7/9/2009 4:57:47 AM   
MmeGigs


Posts: 706
Joined: 1/26/2008
Status: offline
quote:

ORIGINAL: servantforuse
What do you think it would cost to eat at a McDonalds if they suddenly had to double the wages they paid from around $7.50 an hour to $15.00 ? Another question. Why should they have to pay $15 an hour for a job that is basically unskilled ?


Because $15 a lot closer to the actual cost of labor than $7.50. Because we - the taxpayers - are making up the difference with the Earned Income Credit, food stamps, housing and day care assistance and other programs for working poor folks. Why should taxpayers subsidize McDonalds?

(in reply to servantforuse)
Profile   Post #: 44
RE: I just did some calcs on the national debt clock - 7/9/2009 6:21:27 AM   
samboct


Posts: 1817
Joined: 1/17/2007
Status: offline
"Because $15 a lot closer to the actual cost of labor than $7.50. Because we - the taxpayers - are making up the difference with the Earned Income Credit, food stamps, housing and day care assistance and other programs for working poor folks. Why should taxpayers subsidize McDonalds?"

Thanks Mme. Gigs.  Wholeheartedly agree- which is also the reason I can't stand Walmart.  And the massive profits that chain generated would have paid health care insurance for all their employees, but instead there were tutorials about how to apply for state assistance.

And to Sanity- if the unskilled labor starts making $15 at McDonalds, the semi skilled labor at $15 already is gonna want to see a bump up in his/her salary- so real wages start rising.

In terms of Ford- sure the other companies had to match what he was paying- they just went berserk doing it.  And that Ford had over 50% market share for so long was a tribute to his aggressive pricing.  Other manufacturers began designing far more sophisticated cars than the Model T which Ford hung on to like grim death.  There's a tale about how when Ford went on vacation, his workers built a red low slung car which was a lot sexier than the Model T- with a snazzy paint job to boot, and presented it to him on his return.  He pulled the car apart with his bare hands.  Coupled with his virulent anti semitism, you have to wonder a bit about the guy....


Sam

(in reply to MmeGigs)
Profile   Post #: 45
RE: I just did some calcs on the national debt clock - 7/10/2009 8:17:48 AM   
MmeGigs


Posts: 706
Joined: 1/26/2008
Status: offline
quote:

ORIGINAL: Sanity
And what about the semi-skilled guy who's hauling in 15 an hour now. Suddenly he's only worth the same as some punk kid who is only starting his first job at McDonalds?


Are his hurt feelings a good enough reason to keep using tax dollars to subsidize low wages? An awful lot of semi-skilled workers aren't making anything close to $15 an hour now. I'm guessing that they'd be danged happy to get $15/hr no matter who else is getting it.

For the last 20+ years, there has been a downward trend for wages for the folks on the bottom third of the economic ladder. In the early 1980's, starting wage for a semi-skilled factory job around here was about $10 with full benefits. Today it's about $10 with few benefits. In that time, welfare spending has increased incredibly - from $95.4Bil in 1980 to $483Bil in 2008. In 1980 the bottom 50% of earners were paying 7% of the income taxes. In 2006 they paid 3%. These things are directly related to one another. I hear a lot of folks upset about the increase in welfare spending and the increasing number of folks who don't pay taxes, and I think that they have every right to be upset about it - I don't like it, either - but I don't hear many of those folks acknowleding that wages are a part of the equation.

The way I see it, we have three basic options for dealing with the balance between wages, welfare and taxes.

We can keep going the way we are now - subsidizing low wages with tax dollars in the form of welfare. The upsides to this are that we keep prices low and don't cut into profits. US manufacturing and other businesses can remain reasonably competitive with low cost overseas manufacturing. The downside is that taxes will go up. Even if we keep the general welfare spending the same there will be fewer of us paying not only for the welfare programs but for the non-payers' share of everything else. There will be more hard working folks having to apply for assistance. That's a really humiliating thing for a working person to have to do. And we'll still have the whole health care thing to deal with. It's the same as taxes, there will be more of us needing help and fewer of us footing the bill. Those of us who are footing the tax and healthcare bills will have less to save and spend, which doesn't do much for economic recovery.

We could raise the minimum wage up to a more reasonable level and index it to inflation so wages don't start sliding backwards. The upsides to this are that we have fewer people getting assistance and more people paying taxes, so we all will be paying less. We'll increase the number of consumers, which would be a big boost to our economy. We may increase the number of savers, and that's something we could use more of. It would really help hold down state and local government costs - a large percentage of their budgets have to do with wage subsidy programs - and would keep down property and sales taxes. I think that it would be great for small towns. Many of them around here have been hit hard by the dropping wages in their manufacturing plants over the last few decades. The downside is that prices will go up and higher wages would cut into profits. It would likely cause some small businesses to fold, but then, more than half a million small businesses fold every year for one reason or another. Maybe we'd have only one Starbucks per square mile. Maybe we'd have a few less dollar stores and a few more interesting locally owned shops.

We could keep wages low and eliminate spending on wage subsidy programs, perhaps on welfare altogether, other than for the most destitute or disabled. The upsides would be that we wouldn't be cutting into profits and we'd keep prices low. We would see some drop in our taxes, although there would still be all of the non-welfare related costs that would be shared by a smaller number of taxpayers. The downsides - there would be a lot of folks going hungry, having to move back in with their parents, that kind of thing. Small towns would be hit hard - harder than they were by the falling manufacturing wages. There would likely be a lot of unpleasant social consequences - lots of folks moving to the cities to look for work, increases in crime and violence when folks are all crowded together.

I think that the middle option makes the most sense. I'd be all for doing something for business in exchange, like eliminating employment-related taxes, letting them take deductions for providing benefits. What we tax, we discourage, so it seems pretty silly to tax employers for hiring people. The middle option also seems the most market-driven to me. Prices would reflect the real cost of bringing the product to market, including the unsibsidized cost of labor.

I'd be interested to see how others see this playing out.

(in reply to Sanity)
Profile   Post #: 46
RE: I just did some calcs on the national debt clock - 7/10/2009 1:33:54 PM   
willbeurdaddy


Posts: 11894
Joined: 4/8/2006
Status: offline
quote:

ORIGINAL: MmeGigs




We could raise the minimum wage up to a more reasonable level and index it to inflation so wages don't start sliding backwards. The upsides to this are that we have fewer people getting assistance and more people paying taxes, so we all will be paying less. We'll increase the number of consumers, which would be a big boost to our economy. We may increase the number of savers, and that's something we could use more of. It would really help hold down state and local government costs - a large percentage of their budgets have to do with wage subsidy programs - and would keep down property and sales taxes. I think that it would be great for small towns. Many of them around here have been hit hard by the dropping wages in their manufacturing plants over the last few decades. The downside is that prices will go up and higher wages would cut into profits. It would likely cause some small businesses to fold, but then, more than half a million small businesses fold every year for one reason or another. Maybe we'd have only one Starbucks per square mile. Maybe we'd have a few less dollar stores and a few more interesting locally owned shops.


I think that the middle option makes the most sense. I'd be all for doing something for business in exchange, like eliminating employment-related taxes, letting them take deductions for providing benefits. What we tax, we discourage, so it seems pretty silly to tax employers for hiring people. The middle option also seems the most market-driven to me. Prices would reflect the real cost of bringing the product to market, including the unsibsidized cost of labor.

I'd be interested to see how others see this playing out.


The problem is balancing the welfare savings (which come from personal/property taxes) with the increased labor costs, which fall on businesses, complicated by the double taxation on dividends. It would take large scale changes in the corporate tax structure, which then impacts how they allocate their resources. (Benefits are already deductible, so that suggestion doesnt buy anything). That shifting of the tax burden also exacerbates the differences between Sub-S corps and more formal corporate structures, so you squeeze small businesses. An overlaying that entire scenario is the assumption that a large part of the welfare population is employable at any wage. You can easily wind up spending a ton of money on wage increases for the already employed without making much of a dent in welfare costs.

I also don't think it can be characterized as "market driven". In the end its wage controls. If you look at the same general ideas from the supply side, make the changes in the corporate tax structure that would be required to balance your proposal, and let businesses decide how to invest the increase in the bottom line. That would be a market driven solution, and, voila, exactly what conservatives believe should happen.

< Message edited by willbeurdaddy -- 7/10/2009 1:34:57 PM >

(in reply to MmeGigs)
Profile   Post #: 47
RE: I just did some calcs on the national debt clock - 7/10/2009 1:40:52 PM   
Mercnbeth


Posts: 11766
Status: offline
An exercise in real life business economics.

A business who has budgeting $30 / hour in employee salaries currently with three employees at $10/hour will somehow manage to get by with 2 employees if the minimum wage went up to $15/hour.

The only "business" that can be excluded from that equation is the government who, unlike a business, only needs to increase taxes to generate revenue. A business has no such luxury.

(in reply to willbeurdaddy)
Profile   Post #: 48
RE: I just did some calcs on the national debt clock - 7/10/2009 2:00:32 PM   
willbeurdaddy


Posts: 11894
Joined: 4/8/2006
Status: offline

quote:

ORIGINAL: Mercnbeth

An exercise in real life business economics.

A business who has budgeting $30 / hour in employee salaries currently with three employees at $10/hour will somehow manage to get by with 2 employees if the minimum wage went up to $15/hour.

The only "business" that can be excluded from that equation is the government who, unlike a business, only needs to increase taxes to generate revenue. A business has no such luxury.


Not quite that simple, since those that have 3 employees at $10/hour are largely labor intensive businesses and need the hours coverage to deliver whatever it is they are selling. Its much easier to consolidate 3 salaried workers into 2.

(in reply to Mercnbeth)
Profile   Post #: 49
RE: I just did some calcs on the national debt clock - 7/10/2009 2:30:45 PM   
Mercnbeth


Posts: 11766
Status: offline

quote:

ORIGINAL: willbeurdaddy


quote:

ORIGINAL: Mercnbeth

An exercise in real life business economics.

A business who has budgeting $30 / hour in employee salaries currently with three employees at $10/hour will somehow manage to get by with 2 employees if the minimum wage went up to $15/hour.

The only "business" that can be excluded from that equation is the government who, unlike a business, only needs to increase taxes to generate revenue. A business has no such luxury.


Not quite that simple, since those that have 3 employees at $10/hour are largely labor intensive businesses and need the hours coverage to deliver whatever it is they are selling. Its much easier to consolidate 3 salaried workers into 2.


Not really, you'll just wait longer for your Big Mac or pizza; or be put on hold longer than you are now when you call someplace for a CSR.

Any business, except the government, has fixed costs for employee expenses.

On the other side of the equation, I doubt increasing the product cost 50%, to account for the same increase on the expense side, will be absorbed by the market. A $6.10 Big Mac? Kinda makes the increase in minimum wage moot. Similarly to making the minimum wage $100/ hour and having a Big Mac cost $400 instead of $4. Net effect $0.

Best way to increase unemployment - raise the minimum wage while at the same time increasing the taxes on income and Corportations. Unless your goal is 100% government employment; but then a Big Mac would be luxury item provided for the insider elite with a prescription permission slip from you Doctor.

(in reply to willbeurdaddy)
Profile   Post #: 50
RE: I just did some calcs on the national debt clock - 7/10/2009 2:58:56 PM   
mnottertail


Posts: 60698
Joined: 11/3/2004
Status: offline
Willbe, the thing about employees is they get sick, or go on a bender or just say fuck it......so I don't buy it.

Merc, taxing the shit outta big corporations is my idea of an excellent way to drive the bloodsuckers outta the country........they don't put nothing in...........and before we hear back on that, GM, Wall Strret, Exxon..........Congress, Senators and whatnot.......well, for the piddly shit they actually add, when they fall in, we have to suck it up. Small businesses are big enough, death to Corporations that have no sole allegiance in and to the US.

And Merc have you priced a big fuckin' mac.........? They certainly pass on any costs plus in some artificial formula, that's how it happens that gas was at a record cost and oil made record profit.

_____________________________

Have they not divided the prey; to every man a damsel or two? Judges 5:30


(in reply to Mercnbeth)
Profile   Post #: 51
RE: I just did some calcs on the national debt clock - 7/10/2009 3:25:52 PM   
willbeurdaddy


Posts: 11894
Joined: 4/8/2006
Status: offline

quote:

ORIGINAL: Mercnbeth
Any business, except the government, has fixed costs for employee expenses.

On the other side of the equation, I doubt increasing the product cost 50%, to account for the same increase on the expense side, will be absorbed by the market. A $6.10 Big Mac? Kinda makes the increase in minimum wage moot. Similarly to making the minimum wage $100/ hour and having a Big Mac cost $400 instead of $4. Net effect $0.

Best way to increase unemployment - raise the minimum wage while at the same time increasing the taxes on income and Corportations. Unless your goal is 100% government employment; but then a Big Mac would be luxury item provided for the insider elite with a prescription permission slip from you Doctor.


Large businesses do not operate with "fixed costs for employee expenses". They have target returns on investment after taxes and, with a given tax structure that translates into a target EBITDA (earnings before interest, taxes, depreciation and amortization).

There is some flexibility in the target ROI, and plenty of flexibility on the components of EBITDA and ROI. The proposal we were discussing included tax cuts/incentives that would offset the increase in minimum wage. IF the net effect on ROI is zero then there is no reason for a $6.10 In 'n Out Double Double. (Ewwww to Big Macs).

Agreed, unemployment goes up with large minimum wage increases that cant be offset in some other manner. (There is scant evidence that the smaller increases in minimum wage that have been mandated increase unemployment at all.)

(in reply to Mercnbeth)
Profile   Post #: 52
RE: I just did some calcs on the national debt clock - 7/10/2009 3:42:21 PM   
Mercnbeth


Posts: 11766
Status: offline
quote:

Merc have you priced a big fuckin' mac.........?
No I had to look it up.
quote:

They certainly pass on any costs plus in some artificial formula, that's how it happens that gas was at a record cost and oil made record profit.
Exactly. Providing evidence that given the excuse of an increase to wages, the expense will more than be offset by end cost to the product. Taking your point as fact, the bottom line impact to any person getting a salary increase due to a change to the minimum, is negative. Unless he switches from a Big Mac to a Un-'Happy Meal'.


(in reply to mnottertail)
Profile   Post #: 53
RE: I just did some calcs on the national debt clock - 7/11/2009 7:55:12 AM   
MmeGigs


Posts: 706
Joined: 1/26/2008
Status: offline
quote:

ORIGINAL: willbeurdaddy
An overlaying that entire scenario is the assumption that a large part of the welfare population is employable at any wage. You can easily wind up spending a ton of money on wage increases for the already employed without making much of a dent in welfare costs.


That's not an assumption, it's a fact. A large part of the welfare population is employed. 3 million working families make less than poverty level wages. A quarter of working families are classified as low-income. These days there are many who have recently become unemployed. We spend a LOT of money on assistance programs for these folks. There are many working families getting food stamps, medical assistance, housing assistance, and daycare assistance. Even with all the money we spend, the waiting lists for housing and daycare assistance are years long. Getting working families off the assistance rolls would make a significant dent in government spending on all levels. We spend in excess of $30Bil a year on the Earned Income Credit. There are 138 million taxpayers, so we each paid $217 of that.

quote:

I also don't think it can be characterized as "market driven". In the end its wage controls. If you look at the same general ideas from the supply side, make the changes in the corporate tax structure that would be required to balance your proposal, and let businesses decide how to invest the increase in the bottom line. That would be a market driven solution, and, voila, exactly what conservatives believe should happen.


That's pretty much what we're doing now, but with tax breaks for businesses. How is that going to address welfare spending and low wages? Part of the supply-siders argument was that the benefits of the robust economy they would create would trickle down. The rising tide would lift all boats. I know that some us here are old enough to remember hearing this. That's not the way it worked, though. Over the past few decades when businesses were doing well and investors were making high returns and salaries and bonuses for the folks at the top were going through the roof, these gains weren't shared with labor. Very little trickled down. The number or working people applying for assistance went up, even though many states were tightening up eligibility guidelines.

I think that we should relieve businesses of all labor related taxes. What we tax, we discourage, and I think we'd all agree that we want to encourage employment. Perhaps we could relieve businesses of the costs of employee health care. In exchange, we raise the minimum wage and index it to inflation. Yes, it's wage control, but so what? When I buy materials for my business, I don't expect my suppliers to sell it to me for less than cost. I sure don't expect that the government is going to provide them with money for basic business expenses in order to keep my prices low, even if lower prices would encourage my business to grow. Why should it be any different with labor? It costs people a certain amount of money to provide their labor. They have to have a place to live, food, transportation, etc. Like the suppliers, they can't afford to sell their services for less than it costs them to provide them. Why should government to provide money for basic expenses in order to keep labor costs artificially low?

(in reply to willbeurdaddy)
Profile   Post #: 54
RE: I just did some calcs on the national debt clock - 7/11/2009 9:41:06 AM   
willbeurdaddy


Posts: 11894
Joined: 4/8/2006
Status: offline
quote:

ORIGINAL: MmeGigs

quote:

ORIGINAL: willbeurdaddy
An overlaying that entire scenario is the assumption that a large part of the welfare population is employable at any wage. You can easily wind up spending a ton of money on wage increases for the already employed without making much of a dent in welfare costs.


That's not an assumption, it's a fact. A large part of the welfare population is employed. 3 million working families make less than poverty level wages. A quarter of working families are classified as low-income. Lets talk about the welfare population, not "less than poverty level" and "low income". Poverty level isnt poverty in the traditional sense of destitute and unable to provide basic needs of food clothing and shelter. These days there are many who have recently become unemployed. We spend a LOT of money on assistance programs for these folks. Thats what unemployment insurance is, not welfareThere are many working families getting food stamps, medical assistance, housing assistance, and daycare assistance. Even with all the money we spend, the waiting lists for housing and daycare assistance are years long. Getting working families off the assistance rolls would make a significant dent in government spending on all levels. We spend in excess of $30Bil a year on the Earned Income Credit. There are 138 million taxpayers, so we each paid $217 of that. None of this addresses my point, of how many on welfare are actually employable. That means they will show up for work every day, do their job, and not alienate customers or co-workers.

quote:

I also don't think it can be characterized as "market driven". In the end its wage controls. If you look at the same general ideas from the supply side, make the changes in the corporate tax structure that would be required to balance your proposal, and let businesses decide how to invest the increase in the bottom line. That would be a market driven solution, and, voila, exactly what conservatives believe should happen.


That's pretty much what we're doing now, but with tax breaks for businesses. How is that going to address welfare spending and low wages? I didnt say it would, I said your calling it "market driven" is a misnomer. Part of the supply-siders argument was that the benefits of the robust economy they would create would trickle down. The rising tide would lift all boats. I know that some us here are old enough to remember hearing this. That's not the way it worked, though. Actually that is the way it worked. Real GDP per capita steadily increased, and while there was some increase in inequality it didnt offset the overall rate of increase. Over the past few decades when businesses were doing well and investors were making high returns and salaries and bonuses for the folks at the top were going through the roof, these gains weren't shared with labor. Very little trickled down. The number or working people applying for assistance went up, even though many states were tightening up eligibility guidelines.

I think that we should relieve businesses of all labor related taxes.What are classifying as a "labor related tax"? What we tax, we discourage, and I think we'd all agree that we want to encourage employment. Perhaps we could relieve businesses of the costs of employee health care. In exchange, we raise the minimum wage and index it to inflation. Somebody still has to pay for the health care, at an average rate of about $4 per hour per employee. The average gap between hourly wages and $15 is also right around $4,so below $15 things offset on average. For those earning above $15 youve penalized them the cost of their health benefits, unless they are given a raise of $4 per hour on average, in which case everything still offsets. Yes, it's wage control, but so what? When I buy materials for my business, I don't expect my suppliers to sell it to me for less than cost. But you do expect them to charge a market rate, and if they didnt you would go somewhere else. Wage controls just artifically raise the market rate for labor, increasing the cost of goods. I sure don't expect that the government is going to provide them with money for basic business expenses in order to keep my prices low, even if lower prices would encourage my business to grow. Why should it be any different with labor? It shouldnt, and I dont think you want the government to set the prices of your supplies eitherIt costs people a certain amount of money to provide their labor. They have to have a place to live, food, transportation, etc. Like the suppliers, they can't afford to sell their services for less than it costs them to provide them. Why should government to provide money for basic expenses in order to keep labor costs artificially low? Youve got it totally backwards. Labor costs are market driven, not artificially low. So your proposal is to shift some of those increases in labor costs from a $15 minimum wage either back onto the individual (in which case there is no net gain to the individual) or to the taxpayers, again no net gain on average, just redistribution, depending on who you tax for it



If you could get more than the value of welfare payments from employing those on welfare, it would happen by natural market conditions.

< Message edited by willbeurdaddy -- 7/11/2009 9:43:59 AM >

(in reply to MmeGigs)
Profile   Post #: 55
RE: I just did some calcs on the national debt clock - 7/12/2009 7:52:40 AM   
MmeGigs


Posts: 706
Joined: 1/26/2008
Status: offline
quote:

ORIGINAL: willbeurdaddy
Lets talk about the welfare population, not "less than poverty level" and "low income".


You appear to be defining welfare very narrowly, perhaps thinking only of cash assistance. I'm defining it more broadly - all government funded income-based assistance programs. If we're talking about the money that taxpayers spend on these programs, it makes no sense to talk only about cash assistance because that's only a small slice of the pie - less than 20% of total welfare spending.

quote:

Poverty level isnt poverty in the traditional sense of destitute and unable to provide basic needs of food clothing and shelter.

Sure it is. Poverty level income for a family of 4 is about $20,000. It's not out-on-the-streetcorner-begging-for-change destitute, but it's not possible provide food, clothing and shelter for a family of 4 on $10/hr without some kind of assistance - if not from government, then from family or charity.

These days there are many who have recently become unemployed. We spend a LOT of money on assistance programs for these folks. Thats what unemployment insurance is, not welfare


A lof of folks who receive unemployment insurance also receive medical assistance, food stamps, etc. When unemployment insurance runs out, many folks start receiving welfare.

quote:

None of this addresses my point, of how many on welfare are actually employable. That means they will show up for work every day, do their job, and not alienate customers or co-workers.


If we're defining welfare in the broader sense, most welfare recipients are already employed. If we're talking about cash assistance only - which, again, is just a small part of total welfare spending - about 20% are employed, another third or so - probaly more these days - are folks who are employable and are looking for work. The remaining 40% or so are folks who have two or more barriers to employment. Some are the elderly or disabled who we all understand won't be rejoining the workforce. Many of the rest of them would be employable if the barriers were addressed. Lack of transportation was the most common barrier, and speaks to why some folks don't show up for work every day. It's expensive to own a car and there's little or no public transportation outside of large urban areas. Lack of education or job skills was next. We could make better use of our educational system so that when people graduate from highschool they're ready for the working world, but that takes money, and it doesn't seem that folks want to spend more money on education. The third most common barrier was lack of access to daycare. It's expensive - around here it's $600/mo for an infant, $400-$450/mo for 2 and up, and folks who meet the income guidelines for assistance can expect to be on the waiting list for 3 years before funding becomes available.

If you're talking about people who are lazy and rude on the job and who just don't come in to work if they've got something better to do, most of these are single young folks whose parents haven't kicked them out yet. Either that or they've got drug problems. They aren't representative of welfare recipients.

quote:

I didnt say it would, I said your calling it "market driven" is a misnomer. Part of the supply-siders argument was that the benefits of the robust economy they would create would trickle down. The rising tide would lift all boats. I know that some us here are old enough to remember hearing this. That's not the way it worked, though. Actually that is the way it worked. Real GDP per capita steadily increased, and while there was some increase in inequality it didnt offset the overall rate of increase. Over the past few decades when businesses were doing well and investors were making high returns and salaries and bonuses for the folks at the top were going through the roof, these gains weren't shared with labor. Very little trickled down. The number or working people applying for assistance went up, even though many states were tightening up eligibility guidelines.


You didn't address this last bit.

quote:

What are classifying as a "labor related tax"?


Employer's share of Social Security, Medicare contribution, unemployment insurance contribution, that kind of thing.

quote:

Somebody still has to pay for the health care, at an average rate of about $4 per hour per employee.


Yep, but everyone agrees that we're spending too much and that this could be cut down quite a bit. Most folks agree that we'd like everyone to have health insurance one way or another. I think that government-run universal health care is just not a possibility in the near future politically, and I don't know that it's the only way or best way to provide universal coverage. I'd be okay with trying out a car insurance model. Get employers completely out of the picture and have individuals and insurance companies deal with each other directly. It would have to be accompanied by an increase in wages, though.

quote:

But you do expect them to charge a market rate, and if they didnt you would go somewhere else.


The market rate includes enough money to cover expenses and a reasonable profit. If suppliers didn't charge that much, they'd go out of business. The difference is that the suppliers set their own prices and have some control over their expenses. Low wage workers have little control over what it costs to live and less over what they are paid for their services. We've enabled them to work for less than it costs them to live - kept wages artificially low - by filling in the gaps with tax dollars in the form of medical assistance, daycare assistance, housing assistance, foodstamps, etc.

quote:

So your proposal is to shift some of those increases in labor costs from a $15 minimum wage either back onto the individual (in which case there is no net gain to the individual) or to the taxpayers, again no net gain on average, just redistribution, depending on who you tax for it


I'm proposing that employers pay the actual cost of labor rather than having it subsidized with tax dollars through assistance programs. I understand that prices will go up some, but not as much as some folks seem to think they will. Prices will more accurately reflect the cost of goods sold, something that I would think folks who are pro-market would see as a good and appropriate thing. Taxes will go down as fewer people need assistance and more people become taxpayers. As a taxpayer on the lower edge of middle class, it would likely be a wash for me financially. Still, I'd rather decide which higher-priced items and services I'd like to buy than to have the government using my tax dollars to support the businesses that pay the crappiest wages. I would think that pro-market folks would see this as a positive thing, too.

(in reply to willbeurdaddy)
Profile   Post #: 56
RE: I just did some calcs on the national debt clock - 7/12/2009 8:31:36 AM   
cadenas


Posts: 517
Joined: 11/27/2004
Status: offline
quote:

ORIGINAL: servantforuse
What do you think it would cost to eat at a McDonalds if they suddenly had to double the wages they paid from around $7.50 an hour to $15.00 ? Another question. Why should they have to pay $15 an hour for a job that is basically unskilled ? Do you want fries with that ?


Maybe it is time to take a step back here. OK, let's say for argument's sake that McDonald's prices would double. What is so bad about that? Over the past 30 years, us upper-middle-class Americans simply got used to going out to eat almost every day of the week - it used to be a once-a-month special treat. The only way this was possible was by underpaying the people who actually do the work. And underpaying in turn means that they didn't get to participate in this "increase in standard of living".

It's quite simple, really, once you start thinking in terms of hours instead of dollars. The number of hours that all Americans combined work in a year is more or less fixed (not completely fixed, but you can't suddenly double or triple the number of hours worked - at least not with the full employment that we have had for close to 20 years). That means that the amount of "stuff" Americans make is also fixed, with the exception of increased productivity. Not even the computer revolution increased productivity anywhere near enough. And that means that it is mathematically impossible that all Americans will be able to participate in this type of prosperity.

Or, said differently, the only reason many people today are able to afford going to McDonalds for dinner is that somewhere somebody else is working for less than he would have worked for 20 years ago. And that is exactly what has happened: more and more minimum-wage jobs, more and more manufacturing outsourced to countries where wages are even lower than our minimum wage, more and more illegal immigration.

And the way out of that is to get rid of low prices. In light of that, if McDonalds' prices doubled - what's so bad about that?


(in reply to servantforuse)
Profile   Post #: 57
RE: I just did some calcs on the national debt clock - 7/12/2009 11:46:14 AM   
willbeurdaddy


Posts: 11894
Joined: 4/8/2006
Status: offline

quote:

ORIGINAL: cadenas

quote:

ORIGINAL: servantforuse
What do you think it would cost to eat at a McDonalds if they suddenly had to double the wages they paid from around $7.50 an hour to $15.00 ? Another question. Why should they have to pay $15 an hour for a job that is basically unskilled ? Do you want fries with that ?


Maybe it is time to take a step back here. OK, let's say for argument's sake that McDonald's prices would double. What is so bad about that? Over the past 30 years, us upper-middle-class Americans simply got used to going out to eat almost every day of the week - it used to be a once-a-month special treat. What world did you live in? Fast food was never a "once a month special treat" due to cost.


The only way this was possible was by underpaying the people who actually do the work. And underpaying in turn means that they didn't get to participate in this "increase in standard of living". Underpaying is impossible in a free market.

It's quite simple, really, once you start thinking in terms of hours instead of dollars. The number of hours that all Americans combined work in a year is more or less fixed (not completely fixed, but you can't suddenly double or triple the number of hours worked - at least not with the full employment that we have had for close to 20 years). That means that the amount of "stuff" Americans make is also fixed, with the exception of increased productivity. Not even the computer revolution increased productivity anywhere near enough. And that means that it is mathematically impossible that all Americans will be able to participate in this type of prosperity. You are factually incorrect that productivity hasnt and theoretically incorrect that it cannot increase so everyone shares in it prosperity.

Or, said differently, the only reason many people today are able to afford going to McDonalds for dinner is that somewhere somebody else is working for less than he would have worked for 20 years ago. And that is exactly what has happened: more and more minimum-wage jobs, more and more manufacturing outsourced to countries where wages are even lower than our minimum wage, more and more illegal immigration.

And the way out of that is to get rid of low prices. In light of that, if McDonalds' prices doubled - what's so bad about that?




(in reply to cadenas)
Profile   Post #: 58
RE: I just did some calcs on the national debt clock - 7/12/2009 4:29:13 PM   
Politesub53


Posts: 14862
Joined: 5/7/2007
Status: offline
Underpaying is impossible in a free market.

Actually it isnt, thats why jobs move abroad leaving people unemployed. Manufacturers go to the Country that pays the lowest wages, leaving the only way to hang on to those jobs is to accept lower wages. Workers have the upper hand when they are in high demand, employers have the upper hand when jobs are in demand.

(in reply to willbeurdaddy)
Profile   Post #: 59
RE: I just did some calcs on the national debt clock - 7/12/2009 5:03:32 PM   
cadenas


Posts: 517
Joined: 11/27/2004
Status: offline
quote:

ORIGINAL: willbeurdaddy
quote:

ORIGINAL: cadenas

quote:

ORIGINAL: servantforuse
What do you think it would cost to eat at a McDonalds if they suddenly had to double the wages they paid from around $7.50 an hour to $15.00 ? Another question. Why should they have to pay $15 an hour for a job that is basically unskilled ? Do you want fries with that ?


Maybe it is time to take a step back here. OK, let's say for argument's sake that McDonald's prices would double. What is so bad about that? Over the past 30 years, us upper-middle-class Americans simply got used to going out to eat almost every day of the week - it used to be a once-a-month special treat. What world did you live in? Fast food was never a "once a month special treat" due to cost.



Fast food (of the McDonalds variety) is a very new phenomenon to begin with, and for various other reasons actually a poor example.

Point is that 30 years ago, people cooked dinner at home 29 days out of the month. And I am old enough to remember that, yes, going to McDonalds was a very special treat for us kids.

quote:

ORIGINAL: cadenas
The only way this was possible was by underpaying the people who actually do the work. And underpaying in turn means that they didn't get to participate in this "increase in standard of living". Underpaying is impossible in a free market.


The "free market" is an idealized fiction that only exists in economic textbooks. What we have is an unregulated (or little-regulated) market - and unregulated markets actually tend to deteriorate AWAY from a free market into oligolopolistic or even monopolistic markets. This has happened in the labor market to a very extreme extent.

In a free market, all market participants would have equal bargaining power. All would have equal access to information. The number of market participants would be the same order of magnitude on both sides of the market. In a free market, there would be no interaction with other markets, or with extraneous factors - a free market, by definition, is an isolated system.

No, a free market does not exist any more than a frictionless perpetual-motion machine exists, and for much the same reason.

quote:

ORIGINAL: cadenas
It's quite simple, really, once you start thinking in terms of hours instead of dollars. The number of hours that all Americans combined work in a year is more or less fixed (not completely fixed, but you can't suddenly double or triple the number of hours worked - at least not with the full employment that we have had for close to 20 years). That means that the amount of "stuff" Americans make is also fixed, with the exception of increased productivity. Not even the computer revolution increased productivity anywhere near enough. And that means that it is mathematically impossible that all Americans will be able to participate in this type of prosperity. You are factually incorrect that productivity hasnt and theoretically incorrect that it cannot increase so everyone shares in it prosperity.


No, you are factually incorrect in putting words in my mount. If you re-read the paragraph, you'll see that I said that productivity HAS increased - but not near enough to support the increased consumption.


(in reply to willbeurdaddy)
Profile   Post #: 60
Page:   <<   < prev  1 2 [3] 4 5   next >   >>
All Forums >> [Community Discussions] >> Dungeon of Political and Religious Discussion >> RE: I just did some calcs on the national debt clock Page: <<   < prev  1 2 [3] 4 5   next >   >>
Jump to:





New Messages No New Messages
Hot Topic w/ New Messages Hot Topic w/o New Messages
Locked w/ New Messages Locked w/o New Messages
 Post New Thread
 Reply to Message
 Post New Poll
 Submit Vote
 Delete My Own Post
 Delete My Own Thread
 Rate Posts




Collarchat.com © 2025
Terms of Service Privacy Policy Spam Policy

0.107