Re: Credit Crunch/Financial Crisis...

Eminence <grey.eminence@xxxxxxxxxxxxxx> wrote in
news:c2v4e4h2jd3im9f8g7quo0vu4036d1b6js@xxxxxxx:

On Tue, 30 Sep 2008 13:50:27 +0000 (UTC), "The One, The Only"
<lowPgeAniNusT@xxxxxxxxxx> wrote:

Jason Todd <janklowicz24@xxxxxxxxx> wrote in news:a34ce2da-94d8-4a35-
a16d-2f4c7247626e@xxxxxxxxxxxxxxxxxxxxxxxxxxxx:

See the "devil-in-the-details" part starts here. Sure it would be
nice
if people lived within their means.
But the double-edged sword is that if they did, the people who make
the washing machines, flat panel tvs
cars, home building materials, etc, would go broke. Lots of people
unemployed. Money not circulating in the economy. Less tax revenue.
Less money for police, other essentials of local and federal
government.

In other words, the entire country becomes Ohio and Detroit.

And this is where you hit another wall...because what you're really
saying is that wages aren't adequate to support people.

So why aren't they? Why are prices so high that a reasonable wage
isn't
enough, especially when so many jobs have been exported with the excuse
of reducing costs? How do we correct that?

When you increase the minimum wage

Who said anything about 'increasing the minimum wage?'

, the cost-per-employee for
employers rises. If the employer can't cover that, there's a reduction
in headcount (people lose jobs). Or, to cover that increased cost, the
employer raises its prices on goods/services. So there's a momentary
blip in purchasing power for people at the bottom that disappears when
(a) there are fewer wage earners or (b) prices increase to offset that
purchasing-power rise. Rising costs ripple upwards, so everything
starts to cost more even thoughwages have apparently gone up.

Yes...but who said anything about 'increasing the minimum wage?'

If the employer has no control over external costs (e.g., raw
materials), then costs savings (or increased profits) can come from
one of three areas: cutting overhead (rent, utilities, etc.), reducing
headcount/wages, or raising prices. Once you've cut your overhead
expenses as far as you can, and then asked your people to do more with
less until you hit that wall (or had them go elsewhere for more
money), then prices have to go up... and if you're lucky, they won't
increase to the point where your customers can't afford your product.

But who said anything about 'increasing the minimum wage?' If anything,
I'm talking about *reducing* the *maximum* wage.

At least, that's been my experience. But then, I live in a Third World
state, so my POV may be atypical.*

*Last week, a guy walked in off the street looking for a job. Said he
was sure he could do the work (it's light manufacturing), but he'd
require full training, constant supervision, and complete follow-up to
complete his tasks (meaning that I couldn't get my own work done while
I was standing at his elbow, then finishing his tasks). And he wanted
to start at TWICE what we normally pay new hires... and he only wanted
to work 3 days a week.

There are idiots and assholes everywhere. I'm not even sure what this is
supposed to illustrate. Hell, I've worked FOR people like that, who were
getting paid a lot more than I was, just because they knew somebody or
gave good head.

The question was, why doesn't a reasonable wage support a reasonably
comfortable lifestyle for a human being of reasonable tastes and needs?

Nobody said anything about 'raise the minimum wage' or 'force employers
to hire incompetent, entitled dickweeds who are more trouble than they're
worth.'

--
JH
Remove my PANTS to reply
.

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