Restaurant Workers Lose Their Jobs Over Newsom’s $20 Minimum Wage

Yes. The percentage of human capital to the cost of production has exponentially declined. 150 years ago over 95% of labor was devoted to agriculture and the human race was constantly threatened by starvation. Today ~ 3% of labor goes to agriculture and starvation in developed countries is a thing of the past.

Cool invention. That swimmer is moving.

 

You are misrepresenting what I have said. Therefore there is no purpose in any further discussion.

 

And these posts are just on the previous page only.

 

The discussion is about increasing the MINIMUM wage and the economic and social results of doing that.

 

How does one “out people on welfare” ?

Do you understand that minimum wage isn’t enough to live on ? Therefore needs to be raised so they dont need government assistance to live ?

Minimum wage in many states is so low that minwage + 30% STILL qualifies for government assistance.

Raise minimum wage tp a living wage, indexed by location, and the problem is solved.

 

Self checkouts were going to happen no matter what the min wage was. Companies have one purpose, and that is to make more money. They have no civic responsibilities, their ONLY responsibility is to ownership or stock holders. They lobby to keep wages artificially low, because they know that the taxpayers will be forced to subsidize them when so they can add tat difference to their bottom line.

 

Please re read my post. The way a person increases their human capital is by gaining work experience. The way a person makes a higher wage is by increasing their increasing their human capital. The way a person gets out of welfare is by increasing their wage. None of this is possible for those who lose their job because the minimum wage is increased.

 

Yes. And since the min wage was implemented and the dozens of increases in min wage, the work force has tripled.
And people come to this country to work.

Your claim is rising wages puts people on welfare. And makes it so they can never find other work or ever get a low paying job to start a work life.
That's just nonsense.

 

That is not my claim. I am sorry that you cannot figure this out. There is no point in continuing this discussion.

 

By “Human Capital” you mean “skills”. The problem with that theory is that min wage jobs are minimum wage because they aren’t really “skills” but just simply “tasks” that most anyone can do. But you seem to be leaving out a huge piece of the wage puzzle by not pointing out that when people start at min wage, the expectation for the next level is even less because the minimum wage is already so low, than the next step up STILL requires that they get financial assistance just to survive. This same scenario plays out for next 3-4-5-15 steps they take.

Minimum wage falsely deflates wages. In Iowa, you qualify for SNAP benefits if you make $14.60 per hour, and our min wage is $7.25. Now that number is full assistance, but the scale form subsides goes up to $21.30 per hour for a family of 4.

So in my state, if you make $20 per hour, the taxpayers are still subsidizing your company,

 

Human capital includes work experience of all kinds. Entry level jobs dealing with customers, getting to work on time, operating as part of a team, written and oral communications, managing inventories, etc.. are indeed skills which increase human capital. Employers are much more inclined to hire persons with resumes which show all these skills and experience.

 

Funny- but over 53 years in business and founding 9 companies, we have never been subsidized by the government in any way. Not a dime's worth.

The fact is that a business must look at labor just as it does with any other expense. It must find the best value, the lowest maintenance, and the best service for the dollar of cost. The most difficult place to do that in business- IS LABOR. Fact is, people who truly perform are in very short supply and very high demand. They can rise in both rank and income quickly, totally because of attitude and performance.

Businesses are not social agencies that exist so people can have a job- or pretend they are supporting themselves. Minimum wage is about as rational as ensuring minimum profit for companies, and I doubt you would be in favor of that.

 

As a long-term employer- let me add something. A person lacking skills and experience can still bring an employer the most valuable and sought after qualities- and ensure they will find jobs quickly.
Those things are described as Attitude- the will to learn, the ability to be on time, to do their best, be honest and enthusiastic, and actually help the company reach it's goals.

That will get you a job when the "not hiring" sign is up, if you talk to the right person, like the owner or responsible manager.

 

And conversely workers should be able to trade their human capital for any job of their choosing at any wage that they choose or agree upon. Wage rates should not be set by government dictate but should be a negotiation between worker and employer. An extreme example of this are internship programs where workers agree to work for no monetary compensation but realize that the experience gained in the position would increase their human capital by an extreme amount which would result in large increases in future compensation.

 

Exactly. Well said.

 

BASIC skills don't increase salaries.

2 things increase salaries:
Skill
Supply/Demand

Everything else is icing. Those 2 qualities are everything in the hiring process. I have been a hiring manager for over 20 years now, in IT, and I mainly hire entry level positions and grow new hires thru a process. Its easier to hire limited skills, and focus on their ability to learn. We use DISK scoring to help determine that, but at the end of the day, most places today hire entry level people and grow them thru their process.

That creates many issues for the employee, that actually benefit the employer
1. Wage growth while working at the same company is usually much slower than it would be by moving to another company.
2. Skillsets usually become stagnant the longer you work at the same company (they do things the same every time)
3. They dont keep up with the market, so most falsely accept their value because they only know what they have seen from the company they have worked for
4. Their skills become stagnant, again, making their market value less, thus its harder to move

And the biggest issue for employer/employee relations today is that the employer has no loyalty to the employee. It used to be that when you started working for a company, you would work their for 30 years, get a gold watch, and a pension from that employer (because you paid into it), and everyone was happy. But all of that went the way of profits, and those profits going to fewer and fewer people. So while your bitching about the federal government spending so much on social programs, just remember that you pay taxes to the federal government so they can pay for people to get basic necessities and live out their golden years not eating dog food, and more importantly, so that Jeff Besos can have $800BILLION $$$$$$ in the bank to fight paying his workers a living wage

 

Basic skills learned on the job lead to job advancement and the development of advanced skills. Basic skills cannot be learned sitting on a couch at home. Increasing the minimum wage results in more entry level workers with limited education and work experience sitting on the couch instead of working. Why because no one will pay $20 an hour for someone with no work experience and limited education.

I have no problem with working individuals who qualify for social assistance programs getting financial aid because working individuals are increasing their human capital which will result in career advancement leading to increased income leading to getting off welfare.

 

So when that employer pays $7.25 who makes us the difference to the living wage for than employee ?

Oh yeah, the taxpayers do. And they are subsidizing the employer !

I HAVE A PROBLEM WITH IT

When you say the employee needs to get a skill, you are saying that the employee gets a better skill, or they deal with it…right ?

So when an employer cant pay a mandated living wage, he should get a better product or go out of business ….right ?

Both sides have to be held to the same standard….

 

If the working person qualifies for assistance they should get it. Taxpayers are subsidizing the career path of the entry level worker. The great majority of workers in the bottom income quintile have moved up in just a few years. People with zero income do not move up.

You problem appears to be an unwillingness to favor policies which allow people to help themselves.

 

Apprenticeship- being trained in return for being a helper in the beginning. Worked for centuries.

 

YOU employ people- as we all do. When you buy groceries or any product, you are employing those people. But you don't think you owe loyaty to the story that has served you- you think they owe you for employing them.

The relationship between employer/employee is loaded with required and offered benefits to employee, and government ensures they are kept. The employer has absolutely no guarantee from the employee- and no way to enforce anything other than to quit doing business with them. And Bezos worked for many years trying to get Amazon going, starting it in his garage. When his unflagging determination finally paid off, it was because he had done things nobody else could get done. Today, the business he gets is all because the customers want the service he has put together, at the prices he charges. And while this has finally made him very rich, without him- all the benefits that make customers voluntarily choose to buy from Amazon would not exist.

Bezos is one in many millions of entrepreneurs. What he makes from you as a customer, is no doubt very small. But because he's finally achieved a miracle, you think he's evil or something??

There are always people who assume the only reason they aren't rich is that somebody else is. None of those people amount to much.

 

Our son went through a five year apprenticeship program for HVAC technician. He started out at a low rate, went to class 2 days per week, and now earns a journeyman’s wage.

 

How do you acquire wealth that has not been earned?
Walmart, Bank of America, FedEx, and Wells Fargo have something in common. They’ve all paid more than $200 million in wage theft penalties.
Wage theft refers to the illegal practice where employers fail to provide workers with the full compensation or benefits they are owed, as guaranteed by either contract or law.

In the United States, labor is taxed at a higher rate than capital.

Corporate welfare refers to the financial assistance and tax rewards that the U.S. government provides to corporations and businesses.

All this and more has resulted in 1% of the 1% in this country having the same wealth as the entire middle class in this country.

 

I don’t like his politics but we need more Bezos’s in the world. His risk taking and wealth creation benefits us all.

 

Everything democrats touch turns to crap.