Ray From Cleveland
Diamond Member
- Aug 16, 2015
- 97,215
- 37,439
The company lives in the same world though. They have bills to pay as well. So they will need to charge more, that means fewer goods or services being sold which means employees drop to part time or are let go.I don't want workers paid more because it would "feel good." I want those who are willing and able to work to be fairly compensated because a strong middle class makes for a strong economy. Do you want fewer people on gov't assistance? The vast majority getting that kind of help are the working poor. We are subsidizing low wages with our tax money going to SNAP and WIC and Rental assistance and heating assistance and Medicaid. WE are making up for the company's lack of paying a living wage.
Government regulations is why so many hire two part timers instead of one full timer. If the government is spending our money they are taking it from us to begin with. You believe in trickle up economics and I believe the market decides best. Less government=more business=higher wages.
I feel for small businesses, but I know that corporate profits are at an all-time high, while they work to keep wages low. They aren't suffering, but still want to blame government for low wages, because they are "too regulated."
I cannot speak to every regulation out there, but many are for employee and consumer protections. Which ones would you eliminate?
A company (any company) only pays labor what it is worth. This is dictated by the supply and demand market of employees.
You are only worth as much as the next person willing to do the same job and same quality of work as you do. That's how it's decided.
As for corporate profits, let's say you scratched off a lottery ticket today and won a small fortune--say 500K. Your house is paid for, your car is paid for, you have no outstanding bills. After taxes, you get about 300K of that money. What would you do with it?
Of course you would invests it. So you meet with a professional and discuss the situation. You tell him or her you want a nice safe and secure place for your money. Your professional boils it down to two companies. Company A has a growth of 5.5%. Company B has a growth of 3.2%. Which company will you choose to invest your money with?
Now before you answer, I have to tell you that company A has a gross of 3 million dollars a year. Company B has a gross of 200 million dollars a year. Does that change your mind any? Of course not. You don't care how much the company is worth, you only care about how much your own money will grow.
You do what most investors do every day. Companies heavily rely on investors to keep their operation running. Investors are much more important than what a company brings in every year.