California’s New Minimum Wage and the Fear Based Freak Out

Ugh… I am so sick to death of hearing people complain about California raising the minimum wage… Sick… To… DEATH!!! Anyway… This latest post (that I am going to pick apart presently) is the straw that broke the camel’s back… And it sums up all of the fear-based, right-wing talking points all in one ignorant post.

“The sound of $15/hr sounds great at first, but let’s think a little more into this.”  

Oh please wise economic genius… Wow us with your astounding thought processes!

Argument: “If a company has to pay each employee $15/hr. the costs for their product rises. Of course the cost is put on the consumer. Duh.”  

Sure, this might be true, but let’s think on it just a little further.  First off, let’s consider something:

Question: What makes a business successful?

Answer: Aside from a good marketing plan, good management techniques, and hard working employees, the answer is a large customer base that is willing to spend money on the products the business offers.  This is what is called “demand.”

Argument: “Say good bye [sic] to small, family run businesses, large corporate businesses that will soon be moving out of state, and your local restaurants and farms.”

Again… This might be true, but let’s go a little further with our thinking and leave emotional, fear-based predictions behind.

Question: What happens if that business does not have a large enough customer base to support it?

Answer:  There are a few things that can happen.  They raise prices to counter the lack of demand.  They cut costs by cutting corners on their products (which isn’t necessarily honest, but who are we kidding? We know they do this!) They could also lay off employees, downsize, etc… However, if the demand they have available isn’t enough to cover their basic cost of business, they eventually close their doors.

Question: So what happens when a large portion of society barely has enough money to cover basic necessities like food, clothing, rent, insurance, etc?

Answer:  Well for starters they don’t spend money at small mom and pop businesses that typically charge more (considering they don’t have the vast resources available to them like companies like Wal-Mart do) that’s for damned sure!  So where do they go instead? They turn to large corporations like Wal-Mart, who can afford to completely undercut any mom and pop business, where they can buy cheap groceries in bulk.  So the argument that “mom and pop businesses will close down because the minimum wage will increase” is just flat out ridiculous.  Mom and Pop businesses are closing now because the middle class is quickly being absorbed into the poor class because they more and more often don’t have money to spend!

Also, if you honestly think that every business is suddenly going to pick up and move out of state, abandoning a large customer base like California (that will now have a lot more money to spend I might add…) then you are even more naive than I originally thought (and I thought you were pretty naive to begin with…)

Argument: “If large chain stores stay in this state, they are forced to choose one of two things. Raise prices considerably or cut jobs. WAIT?! What loose [sic] jobs, yes, jobs will be cut because people can’t afford to pay them.”  

Wrong… What they will do is possibly raise their prices, once again passing the buck on to consumers so they can continue to make billions of dollars in profits.  Eventually, when that consumer base has more money to spend, and their customer base grows, prices will return to a level that meets the demand.  That is how economics works.  It’s called “supply and demand.”  You should probably look it up.

Also, companies like Costco have been paying higher wages for years, and they are doing quite well.  In fact, Costco pays significantly more than Wal-Mart but for some strange reason (that’s really not so strange at all…)  They make more money than Wal-Mart does! But how can this possibly be true!?

Answer: Happy employees = higher productivity + better customer service = happy customers who will then be more likely to return and patronize the business again! What a surprise!

http://www.fool.com/investing/general/2014/03/12/costco-vs-wal-mart-higher-wages-mean-superior-retu.aspx

Argument: “Who pays for unemployment? You can guess my answer to that.”

And? We’re paying to subsidize Wal-Mart and McDonald’s profits now by allowing them to pay their employees less than a living wage, which in turn requires their employees to collect Welfare and food stamps.  Is that what you want? McDonald’s even encouraged their employees to apply for Welfare because they know they aren’t paying their employees enough to live on! What you’re essentially arguing for, is for the government to use our tax dollars to subsidize the profits of large corporations, all so they can pay their employees garbage wages! How ridiculous is that??? As I’ve said before in other posts, I would much rather have our tax dollars go to things like education, infrastructure, and universal health care, instead of going to subsidize greedy corporations so they can continue to pay their employees shit!

http://www.businessinsider.com/mcdonalds-mcresources-hotline-tells-nancy-salgado-to-get-on-food-stamps-2013-10

“For all of you that think this minimum wage increase is another “fantastic” thing that Jerry Brown has done for us, please unfriend me.”  

Oh trust me, if you were on my friends list, I would have unfriended you a long time ago.  I can’t handle fear-based, ignorant arguments that don’t point to any actual facts or logic.

“You are an idiot and I honestly can’t handle it anymore.”  

Perhaps before you question the intelligence of others, you should make sure your rants use correct spelling, grammar, and punctuation.  I can’t imagine how you’d expect anyone to take advice from you on a complex subject like economics when you can barely get through a few paragraphs without a slew of spelling errors.

“People really need to start thinking about the larger picture.” 

You’re right.  You should probably try looking past your fear-based initial reaction and actually research a topic before you open your fat mouth.

“I am so not sorry for this rant. This is real life, and people need to start getting real.”  

And I am so not sorry for soundly destroying your ridiculous rant for the nonsense that it is.  You’re right, this is real life, and in this day and age, no one working 40 hours a week (sometimes even more than that) should have to go on Welfare or collect Food stamps because they don’t have enough money for basic necessities, all while companies like Wal-Mart and McDonald’s make millions of dollars in profits.

“We all need to think long and hard with this upcoming election, this nation needs to start electing people that can see the larger pictures.” 

If you mean people that will continue to line the pockets of the already rich, then I gladly have to say I disagree.  We need to elect government officials that will look out for the vast majority of the American people who have been sadly neglected for far too long.  People like Bernie Sanders and Elizabeth Warren.

“We are headed down a dark road, and I for one am scared to death of our future.”

With uninformed people like you voting based on their fear instead of facts?  I have to say, I agree completely.  I just hope those that bother to actually look into issues outnumber those like you.

Finally, the fact of the matter is, there are other places that have already raised their minimum wages.  Seattle is one that comes to mind, and they aren’t experiencing the effects on the economy that you are so scared of.  Businesses aren’t fleeing the city or closing down in record numbers, there hasn’t been a plague of mass layoffs.  None of what you’re claiming will happen here has happened there.  Why? Can you answer that?

Besides all of that, the minimum wage will not reach $15 an hour for 6 years.  If a business can’t properly prepare for the adjustment in that amount of time, then they need to find a new accountant!

http://www.latimes.com/business/hiltzik/la-fi-mh-no-the-minimum-wage-isnt-20150316-column.html

http://www.dailykos.com/story/2015/10/1/1425663/-Seattle-Raises-its-Minimum-Wage-Jobless-Rate-Drops-Fox-Scrambles-for-a-Ladder-to-Pick-Cherries

For those that are interested, here is the entire Facebook post that I responded to in its entirety:

“Well California, you sure have done it now. $15/hr. Minimum wage, you sure thought this out. Say good bye to small, family run businesses, large corporate businesses that will soon be moving out of state, and your local restaurants and farms.

I can not believe we actually elect these stupid ass people. The sound of $15/hr sounds great at first, but let’s think a little more into this.

If a company has to pay each employee $15/hr. the costs for their product rises. Of course the cost is put on the consumer. Duh.

Let’s think farther, the property management company is also going to raise their fees, passing on the buck to the tenant. That tenant now has to raise the prices of their products also to the consumer.

How about food? Farmers have several farm labor workers. You all should get excited for things such as strawberries, peaches, or cherries. Hand picked and soon to be unaffordable.

If large chain stores stay in this state, they are forced to choose one of two things. Raise prices considerably or cut jobs. WAIT?! What loose jobs, yes, jobs will be cut because people can’t afford to pay them. Of course no one will say that out loud. Well, y’all should start thinking about this. Bye bye jobs. Hello unemployment.

Who pays for unemployment? You can guess my answer to that.

For all of you that think this minimum wage increase is another “fantastic” thing that Jerry Brown has done for us, please unfriend me. You are an idiot and I honestly can’t handle it anymore. People really need to start thinking about the larger picture.

I am so not sorry for this rant. This is real life, and people need to start getting real. We all need to think long and hard with this upcoming election, this nation needs to start electing people that can see the larger pictures. We are headed down a dark road, and I for one am scared to death of our future.”  

 

 

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