Pennies at the Register, Dollars in the Paycheck

[xchrom]

http://www.nationofchange.org/pennies-register-dollars-paycheck-1375538245

You know the boilerplate argument against higher wages in America, because you've heard it so many times from Fox News' and CNBC pundits. But as service industry workers now mount protests against poverty-level pay and as the Associated Press reports that "four out of 5 U.S. adults struggle with joblessness, near-poverty or reliance on welfare," it is worth reviewing the blowhard's case for low wages one more time — just to see whether it even makes sense.

The three tiered argument goes like this: 1) Higher wages for workers create higher costs for corporations; 2) corporations pass on those higher costs in the form of product price increases; and 3) those price increases must be enormous for corporations to recoup all of their increased labor costs.

What gives these assertions such mass appeal is their populist insinuation that higher wages would hurt the Average Joe. Ultimately, that Average Joe is supposed to conclude that the supposed harm modest wage increases will inflict on him will be far greater than the benefit they will generate for him and the economy as a whole.

For the sake of evaluating this particular conclusion, let's set aside all of the other moral and economic questions at play in the larger debate over wages. Let's, for instance, bypass a discussion about why the richest nation on earth has a $7.25-an-hour federal minimum wage that condemns many workers to destitution. Let's also for a moment disregard the fact that CEOs of the biggest restaurant companies make more in a morning than the average minimum-wage worker in their companies make in a year. Let's even ignore evidence that raising the minimum wage boosts the economy by putting money in the hands of those who will most quickly spend it.

[chervilant]

1. Most CEOs earn in one minute

what it takes me 6 months to a year to earn!

(I'm so sure they're worth every penny...)

[fasttense]

2. When most corporations report wage and labor costs

the CEO's, board's and executive's' pay is lumped in.

[PSPS]

3. When you do the math, it really makes no sense

Well, no sense unless you're a sociopath.

Let's say you have an employee who works 8 hours a day at $8/hour and you now have to pay them $15/hour. That's a "whopping" $56/day increase in wages! I put whopping in quotes because, to the employer, that should be chump change. As an employer myself, I can state unequivocally that, if $56 a day of extra expense is going to hurt your bottom line, then you don't know how to run a business or manage your employees. Maybe you business is under capitalized and you don't really need (or shouldn't have) employees at all. In short, why are you in business and hiring employees in the first place?

On the other hand, that $56/day would represent a real whopping 88% raise to the employee described above. It would be like dying and going to heaven for them -- much happier, much healthier, much more devoted to their job.

[on point]

4. It is not the American worker that is uncompetitive on wage price, it is the CEO's that are

In other words, all the stats show American workers are very productive compared to other workers. It is the CEO's that are overpaid compared to other nations and it is they that are uncompetitive. Most Euro and Asian CEO's make a million or less per year, not the multi-millions the US CEO's make.

[obxhead]

5. I worked at McDonalds when min wage was $4.25/hr

They made the same argument then that they do now with min wage $3 an hour higher.

Here's the kicker though, back then Mcdonalds did not have a $1 menu. You couldn't get a cheesburger for a buck, much less a double cheeseburger. Now it's standard in the industry and they have done it with minimum wage far higher than it was 20 years ago.

How did they do this? they threatened for years that just raising min wage from $4.25 to $4.85 would make a cheeseburger cost $10 or more!

I'm tired of this fearmongering that huge corporations and their media relations companies (the news, every channel) are doing in the US. I'm sick of it.

[Heywood J]

15. How did they do it?

http://news.nationalpost.com/2012/01/26/mcdonalds-drops-use-of-pink-slime-in-u-s-meat/

[Heidi]

6. Kick!

[xchrom]

8. Dah-ling -- how are you?

i've been forced to break out my parasol to save my delicate complexion from the harsh summer rays


?w=984

[Heidi]

12. Oh, darlin', don't I know it!

My natural sweetness is giving me real cause for concern that I may simply melt in this heat. Goodness gracious!

[TBF]

7. In the end it comes down to whether we want a civilized society -

do we want to pay wages/taxes when we are in the upper brackets in order to provide: services, roads, schools, entitlements, health care, safety nets? Or do we want to ignore reality, take as much as we can get for ourselves, and then build walls & hire private security?

If capitalism is going to be your economic system then you had better be asking yourself these questions.

[pangaia]

14. So simple, so obvious, and so true.

I mean, it is a no-brainer.

[ctsnowman]

9. The tired

old BS about worker wages was disproven as soon as they started shipping all the auto manufacturing to 50 cent an hour labor. Did the price of cars plummet? Hell no, they went up.

[Pakid]

10. This article appeared in one of my local papers

the other paper that we have is a right-wing rag from hell Sad to say that where I live the rag is the main paper and the one that at least makes an effort to give a more progressives approach is much less popular. But then NW PA has more than it share of right-wing nuts! All that aside this article lays waste to all of the rich boys BS!!!!!!!!

[99Forever]

11. It is not We the People that need convinced.

It is the Plutocracy in Washington DC.

And they really don't give a shit.

[pangaia]

13. A-Rod makes (well, made) more in one at bat

than I make in an entire year.