Bernie Sanders at Hoffheinz at U of H Sunday Night !!

North side, you use too big words, they can't even comprehend the simplest of terms.

1) Cost of products = cost of labor + material cost + other costs.
If you raise minimum wage of McDonald workers 100%, the cost of a burger does not go up 100%. It does go up but just a fraction.

2) Cost of labor includes cost of labor of minimum wage workers + labor of other workers. That drops the percentage increase of a burger even more.

3) If the minimum wage workers at McDonald use all of their wage increase to buy burgers and only burgers then maybe they don't see a lot of effect of their pay increase but they buy other items as well, gas, car, rent ...

4) Look at all of the other products that a minimum wage worker purchase,
each has a smaller increase depending on how many minimum wage workers each product employs to make.

In all they can never take 100% of their wage increase to purchase these products.

 

There are far more burgers made per hour than fast food chains have employees. These companies are Billion dollar companies. Again you guys are going off the idea that these companies aren't making much prophet and would have to raise prices something that they would love for you to believe but it's simply not true. Smaller companies who don't make much money will not have to pay 15 per hour but companies like McDonald's who make Billions of dollars can afford to pay that amount, it's ridiculous to think that they can't. Again I stress that we have paid higher wages in the past century we are regressing and the economy is taking a hit. Companies have become more and more greedy. These people who work at places like McDonald's who underpay them don't have enough money so they rely on government, that's your tax payer dollars. McDonald's is making profits from your tax payer dollars.

 

That's why voters who have the interest of the people can and should support laws that benefit the general well-being. That's why people should vote for Bernie.

 

There's a Keynesian notion of sticky prices in general equillibrium models but for the purposes of this discussion, I don't think it's worth explaining the pros and cons of that argument given how you're struggling with nominal and real wages.

Let me put it as plain and simple as I can: your theory that minimum wage increases would lead to purchasing power decreases is wrong. I have decades of economic literature and analysis behind me on this point.


Your theory that minimum wage increases would absolutely lead to more poverty is wrong.


I am not disputing that there will be price increases.

I am disputing that those caused by minimum wage increases are such large shocks that the gains created in purchasing power through an increase in the nominal wage are erased by an increase in inflation. I am saying real wages, wages adjusted for inflation, will increase after a change in nominal wages and as a result poverty will decrease. Well, unless you propose a $1 million raise because, when you can't make a point on the evidence, you can always resort to hyperbole on unproven ground.

I honestly didn't really care about unpacking your nonsense economic arguments, but you're using your pseudo-logic to mock other posters which makes no sense to me. Please get your facts and figures straight before you get there and assert anything to the contrary based on vapid, ill-conceived economic theory you've just contrived.

 

Very vague stats you have there. See post below.

Again... You keep missing the point that I said it could have a negative effect on low-skilled workers (which I used young people as an example) and certain groups of people (as in minorities like Blacks and Latinos). And the unemployment rate is already high amongst those groups and that is fact. So increasing the minimum wage may do more harm than good for them... Especially when you have people with college degrees/higher education and or people who are older and have more work experience applying for jobs at places like Starbucks and Sonic.

And you have to pay attention to the fact that some unions are pushing for the minimum wage increase but yet want to be exempt from it as well.

 

True for Walmart too, America's largest employer with 2.2 million employees. That's an irrational burden on the middle class orchestrated to benefit the 1% Walton family.

 

The data I posted is an analysis of almost every notable labour economics study on the employment effects of minimum wage since the 2000s.

Increasing the minimum wage has not decreased employment significantly in the bulk of those studies. Period.

 

I think you are missing the point, most minimum wage, low skilled earners are closer to middle aged. These people have families to support they need more money and the economy needs them to have more money. You think college graduates are going to drop their careers and all of sudden decide to work at McDonald's because they now pay 15 dollars an hour? lol.

 

In here we see the epitome of sophistry used to sway the ignorant, but anyone with actual experience running a business would see right through it.

 

I have run a business and continue to run one.

And I believe you're talking about your own sophistic reasoning: toy economic thinking that has no empirical basis whatsoever.

 

Sure you do.

 

lol. I wish you spent more time doubting your theories without facts rather than doubting people.

Well, this debate is over. Good day.

 

Hilarious argument from the book of Economics by six year olds.

Actual cost of a burger:
10% - Direct Labor
20% - Ingredients
10% - Insurance
30% - Rent
10% - Utilities
10% - Marketing
10% - Misc other

An increase in minimum wage does not equal an equal increase in the cost of the burger. It will result in a fractional increase in the cost of the burger.

 

Having theories without facts is what he does. Its how he is able to have more than 15,000 posts in just two years. He just types opposite of what someone says and trys to use the biggest words he can think of. When faced with facts he personally attacks you are ignores you. His post have no substance and trying to argue with him will do you no good.

 

Bernie was in the home of four basketball legends.

 

SMH, you have cost of labor at 10% and you are insulting someone else? LOL. Double that and you are still short of what most spend on cost of labor even at fast food chains.

 

Anyway, I think fans of the ever increasing minimum wage should consider what they are actually saying, consider the end game. Should that minimum wage increase forever? Is there any point where you'd stop? In theory are we saying that 200 years from now that minimum wage should be hundreds of dollars an hour?

I know that might sound crazy or ridiculous now, but a 9 dollar minimum wage sounded just as crazy or ridiculous less than 100 years ago when they invented a minimum wage. Maybe in those days when the minimum wage is hundreds of dollars an hour, people will be using thousands of dollars an hour as the example.

Consider the practical considerations of that stance. It just doesn't make any sense.

 

What worse than an idiot is an idiot who never learns.

 

Thomas Sowell (along with others) disagrees with you and your stats. And you nor those people are smarter than him... Period.

No... But they are being forced to because they can't find a job. And it should tell you something about the job market and or the education system when a bunch of middle-aged people have to work at fast food restaurants which use to be jobs reserved for young people. I see your point... But you're just looking on the surface not knowing it will make the minority communities worst off. But F it _ they can always sale drugs and commit other crimes.

But I do agree super companies like Walmart should pay more than they do.