GaryDog
Gold Member
- Feb 10, 2016
- 4,369
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People like me ?Are you saying a minimum wage hike caused the financial meltdown of 08, and subsequent Recession?
Or are you just being thoroughly intellectually dishonest about the events surrounding that time period?
First, it always amazes me, how we have said for decades that the minimum wage causes job losses, and then when it happen, just as we say it will happen, every single time you claim that "but it was due to something else".
Did we say that the entire financial melt down was due exclusively to one economic policy? No. I don't know anyone anywhere that has suggest this.
But was it a contributing factor? Yes. Can you prove it wasn't?
Second, even if we put that argument aside, the fact is your side claims routinely, and even in this thread, that with a hike in the minimum wage the economy will boom. That people will have prosperity and higher wages, and economic growth, and so on.
Your side has made this claim hundreds on hundreds of times. Not ONE TIME......... NOT EVEN ONCE..... has that actually happened.
People were screaming that $5.25 was too law in the 1990s. In the 2000s, you said if only we can bump it up to $7.25. Now it's $7.25, and you are claiming it needs to be $10 or $15. Every single time the minimum wage goes up, the only result is that you claim it's not enough, and it needs to be higher, and people are on starvation wages.
So most rational people, look at the two sides, and what they claim the result of hiking the minimum wage will be.... and notice that your claims of Utopia have never come true, and our claims of job loss have always come true.... And quite frankly, for a person to assume that obviously the people who have been wrong every single time, are still right because "well it was something else that caused the problem".... is insane.
Did you not notices that the majority of job losses throughout the great recession, were at the lowest income level, which would be affected by minimum wage laws, rather than the high income level that would be affected by a financial melt down?
Please explain the mechanics of how a international bank losing money a Mortgage Backed Security, would magically cause high school students at McDonalds to lose their jobs? I'd love to hear your theory on how that worked.
So what you are really saying is that Macs/Wal mart/whoever have a business model that cant work without all of us subsidising it with public handouts ?
Perhaps we would be better off without them. Other companies would come in and fill the void.
Or perhaps they would settle for a little less profit.
First, their business model would work, with or without, handouts.
Second, the myth that we are subsidize walmart is just that. It's a myth. Not true.
Third, if you removed Walmart, the other companies would in fact fill the void.... with the exact same wages, and business model.
The fundamental laws of economics, don't magically change because you eliminate a company. Under the same economic system, you will have the same economic results. This doesn't magically change because you banned Walmart or something.
Fourth and finally, no, they are not going to settle for a little less profit.
Not going to happen. Never has in the history of the world, and it's not going to happen today.
There is a couple of things, that I think people like you either don't know, or don't consider.
When you say that Walmart earned $10 Billion, that is Walmart Corporate. Not individual stores. Each store, is run as a separate business. Same with McDonald and Wendy's and so on. Each store has it's own revenue, it's own expenses, and it's own profit margin. Each one pays it's own employees, with it's own revenue from sales.
What's my point? Corporate might have some money, but that doesn't mean the store has money. Corporations do not subsidize stores. If you have to pay the store money, to keep that store open, then the corporation would have more profits closing the store.
So the rule is, the store has to make or break, on it's own. Therefore, if your store doesn't have the money to pay works $15/hr..... then it can't.
And while you think that somehow Walmart has endless cash to pay employees, I think fail to notice that Walmart has one of the slimest profit margins in the industry.
Walmarts profit margin was just 2.6%, with an average of only 3.3%.
That means that for every $100 of goods sold, Walmart makes a profit of just $3.00. Three dollars. And you think they can afford to just give everyone a massive raise? Not a chance.
Really ?
Corporations always bitch about everything that affects their bottom line. But faced with a problem they just adapt. That would be a mix of raising prices and cutting other expenditure.
The benefits to the economy would be considerable.Poor people spend all their income, they dont stash it away in Panama.
Lower welfare means reduced taxation means greater consumer spending. Its a virtuous circle that would ultimately benefit the likes of WalMart.
Poor people spend all their income, they dont stash it away in Panama.
And you wonder why they are still poor??
I see, you think they spend it all by choice?
Christ, there are a lot of silver-spoon-up-the-ass people here.