WSJ: $20 minimum wage coming for California’s fast food workers

How does this relate specifically to the need for unskilled and low skilled workers for small businesses?

 

Yeah you know you're in for it when the start talking about the rates of change of rates of change of rates. W.C. Fields has a good one about Dazzling Brilliance and Baffling ...

 

Big business enjoys the economy of scale.
Small business has to economize in other ways to compete. One of these ways is to pay very close attention to the difference between the production of value and the cost of that value.

For example, is a small business going to pay a wage to a single employee to sweep up at night? Nah, they might toss an extra 15 minutes to an already employed much higher skilled worker to handle the job. That worker will work below their skill, which is in direct competition with a worker that can only produce that type of labor. Or maybe the small business will simply invest in a Roomba.

The worker who's skill does not surpass the ability to push a broom has to figure out some way to improve their skill to compete with the rest of the labor market.

Where have all the elevator attendants gone? Are they still out there waiting for jobs, or did they improve their skill and enter different jobs?

Better yet, why do some buildings still have doormen?

 

IOW, good riddance to small businesses that can't afford to pay the minimum wage?

“The very idea of a minimum wage reflects an antagonistic relationship between employers and workers in which the former must be cajoled by statute into paying people enough to survive —or fight to survive. That means the state, through its legislative power, at least tacitly supports people not being paid enough. Indeed, one might say the state expressly supports the practice to keep wages (and thus costs and inflation) down and the pockets of owners full. Instead of talking about the minimum wage, we should be talking about a living wage.”
TVO TODAY, OPINION AFFORDABILITY, Businesses that can’t afford to pay a living wage can’t afford to operate, OPINION: Ontario’s minimum wage is set to go up to $16.55 an hour. That’s not nearly enough. But businesses will still say it’s too much, too fast, Written by David Moscrop, Apr 5, 2023.
https://www.tvo.org/article/businesses-that-cant-afford-to-pay-a-living-wage-cant-afford-to-operate

 

If you think another way, someone making $20 /hr will pay more federal tax and those taxes will go to RED state to keep lights on a buy food stamps. If I am in RED state I would be thinking God that they raised wages in CA so I can buy some food.

 

Not at all. Some will choose to close their doors. Some will adapt. That's the nature of things. I don't presume to be able to come up with a policy that will influence them to make one choice over the other.

 

Because CEO pay is usually tied to profits. Higher prices usually lead to less profit.

 

CA leads the nation in poverty.

 

Or they will just hire more illegal aliens. Minimum wage laws do not apply like all labor laws do not apply to illegals.

 

And poop on the streets.

 

I mostly agree with you. However, cost of goods sold (including labor costs) has no bearing on what consumers will pay for a product (it's price). This is demonstrated by firms that produce a product that costs more than consumers are willing to pay, and then go out of business.

 

No it doesn't.

 

Status.

 

You might want to do a little investigation into the economic concept of price floors.

 

Trump was part of the Corruption

 

That doesn't stop them from trying...

Something like 60% of business fail within 10 years.

 

Not even sure why you entertained that devastating rebuttal.

 

That’s because Federal Gov takes billions and billions dollars from CA and feed people in RED state. I say CA keeps all her money in state and lets see how RED state keeps their lights on.

 

Agreed. Let's cut off the tap to the federal government. Though, it looks like California gets back 83 cents on the dollar. If we give them back the 17%, that would be 39 billion they get to keep. Ohh...they have a 34 billion dollar deficit this year. That's a shame...

 

Government policy has been instrumental in the destruction of small business in the US.

 

I get it, Trump plays the role of the Devil in your religion.

 

I have not seen that excuse before. Can you show the math?

 

I get it, you worshiped the Golden Cow

 

Do you know what is Donor State?


Donor State

Each state collects a myriad of taxes from its residents, but the ones residents of all states pay are federal income taxes. It makes sense then that states with more residents, specifically more high earners, will pay more to the collective in income taxes than they take, and because of this, we have “donor states.”


These states are the ones who give more federal funds than they receive per capita (or per person). The Tax Foundation says that “84 percent of federal individual income taxes—which account for over 40 percent of federal revenue—are paid by those in the top 25 percent of the income distribution. The majority of these taxpayers live in wealthy, urban, politically “blue” areas like New York, California, and Massachusetts.”


In 2019, New York was the largest donor state in the U.S., with a negative balance of payments at $22,798,000,000. For every dollar New York gave the federal government, its residents were only receiving $0.91 back. As we mentioned, this discrepancy is due to the sheer volume of high earners within the state. Additionally, due to the cost of living in New York City, most of its residents earn over 14% more than the average American.


Seven other states are donor states:


New Jersey (-$10,334,000,000) Blue State

Massachusetts (-$9,919,000,000) Blue State

California (-$6,653,000,000) Blue State

Connecticut ($5,754,000,000) Blue State

Minnesota (-$1,896,000,000) Blue State

Colorado ($1,374,000,000) Blue State

Utah (-$416,000,000) RED State


States Receiving The Most Funding

Virginia is at the opposite end of the spectrum, with the highest positive balance of payments. Virginia’s balance of payments is $111,785,000,000, and residents receive $2.24 for every dollar sent to the federal government. One of the reasons that Virginia receives so much is the proximity to the District of Columbia, where there is a lot of federal spending to support federal projects, politicians, and military efforts.


Kentucky follows with $63,229,000,000 and the highest expenditure per dollar of receipts at $2.89.


The ten states with the largest positive balance of payments (the biggest takers) are:


Virginia ($111,785,000,000) RED State

Kentucky ($63,229,000,000) RED State

Florida ($50,999,000,000) RED State

Maryland ($49,942,000,000)

Ohio ($42,004,000,000) RED State

Pennsylvania ($41,516,000,000)

North Carolina ($35,437,000,000) RED State

Alabama ($33,033,000,000) RED State

Arizona ($30,907,000,000)

South Carolina ($28,209,000,000) RED State

 

Isn't that kind of the point of high federal income taxes on the rich? So that it can fund programs for the poor?