Does the Minimum Wage Really Drive Up Costs?

[HiloJulie]

When I see this kind of crap, the argument AGAINST paying a decent minimum living wage to lower end employees goes out the window for me:

A Hawaii wholesaler fined $73k in back wages for not paying overtime | Local | kitv.com

"The back wages divides into different types of wages recovered for the 11 employees. Of the 73 thousand dollars owed, $36,685 is for unpaid overtime and $36,685 for employee damages."

"The wholesale company is also required to pay $8,877 in penalties for “reckless disregard of the law.”


In this case, gross incompetence of the business owner just doubled his labor costs.

[Or1on]

I'm a bit confused.  The title of your thread poses a question.   Did you mean to say:  Does raising the minimum wage really drive up costs?
Because as you worded it, it doesn't make much sense to me.  I'm slow though.  Please set me straight.   And if that is indeed your question, the answer, in my opinion is yes.  

But the link you shared is about workers not getting the overtime that they were due.  Well of course that isn't fair.  What's the correlation between your link and the question in your thread title?

[AaronM]

Nothing in your article mentions the minimum wage so I am also left wondering about the connection between the thread title and the link.

[HiloJulie]

The connection is simply this:

Man has a business. Hires employees. Sets up his business to sell a product that includes his costs, including labor, supplies overhead and profit. 

Then he screws over his employees by not paying them in accordance with the law, while at the same time telling his customers that his prices have to go up because of “increased labor costs”

I doubt he structured his business to offer a discount to his customers by screwing over his employees. 

And coincidentally, who do you, in the end of it all is really going to pay for his now fine of 80 grand?

Do you honestly think the owner is willing going to take an 80k hit?

Nope. The end consumer pays for all of it. 

And just think. If he had not been caught where do you think the money he “saved” by screwing over his employees would go?

And imagine being the employee who has to work for a guy who would do this.

ETA: If you claim you can’t afford a minimum wage hike, but then can pay an 80k fine, your business model is woefully wrong.

[randomq]

Wage increase %
x
Labor as % of overall costs
=
% product price increase due to labor.

So a 10% increase in wages may only equate to a 2.5% increase in product price, if labor accounts for 25% of costs.

['elepaio]

"And imagine being the employee who has to work for a guy who would do this."

And imagine being the employee(s) who has ( would continue to ) to work for a guy who would do this ?

but eh' hyPATHETICAL riiiht ?

Burger King Whopper. 13.99 nex.

Mo betta' go work a good company like In-N-Out. No dramas.

https://www.breitbart.com/politics/2023/...sk-policy/

[HereOnThePrimalEdge]

but eh' hyPATHETICAL riiiht ?
Burger King Whopper. 13.99 nex.

Question:
Imagine how long a Burger King worker has to work to buy themselves a Whopper?  At the price a year or two ago, or the price now?  

[HiloJulie]

Follow up question:

How long does the CEO of Burger King have to work to buy a Whopper?

(Hint: Not as long as it takes him to buzz his secretary to bring him a cup of coffee)

[HereOnThePrimalEdge]

Imagine you're a worker at Burger King somewhere in East Hawaii (it may or may not be at a classified location in Hilo or Pahoa).
You take a couple of classes at HCC to hopefully escape from your serfdom, (note for some readers of this forum - not to be confused with surfdom).

You learn:
* The dairy industry receives huge price supports, so Burger King can get cheap milk products and cheese.
* Same for the beef industry.
* The corporate business structure allows Buger King to dodge billions in taxes, just a single example: 
( https://americansfortaxfairness.org/issu...tax-dodge/ )
* They benefit from cheap transPacific shipping because the oil industry receives huge subsidies.
* You the employee at the Pahoa or Hilo location who can't even afford to buy a Whopper for an hour of flipping those burger patties on the grill start to wonder, maybe my employer shouldn't be named Burger King, but would better be called Welfare Queen?

[terracore]

Imagine you're a worker at Burger King somewhere in East Hawaii (it may or may not be at a classified location in Hilo or Pahoa).
You take a couple of classes at HCC to hopefully escape from your serfdom, (note for some readers of this forum - not to be confused with surfdom).

You learn:
* The dairy industry receives huge price supports, so Burger King can get cheap milk products and cheese.
* Same for the beef industry.
* The corporate business structure allows Buger King to dodge billions in taxes, just a single example: 
( https://americansfortaxfairness.org/issu...tax-dodge/ )
* They benefit from cheap transPacific shipping because the oil industry receives huge subsidies.
* You the employee at the Pahoa or Hilo location who can't even afford to buy a Whopper for an hour of flipping those burger patties on the grill start to wonder, maybe my employer shouldn't be named Burger King, but would better be called Welfare Queen?

This is why any "real minimum wage" discussion should center on local businesses.  I used to say "local family owned businesses" but having done that ourselves, family members in a business frequently aren't paid anything, they contribute towards it, meaning that they are paying to work.   Try asking a local business owner making -$10/hour to hire somebody making $30 after mandatory minimum wages + insurance +health insurance + workers compensation insurance + social security + FICA + etc and you can see how the Costcos and Walmarts have the financial muscle to do that- so the corporate dream is alive and well but a local dream of hiring a single employee is impossible (assuming one can get permits to even open).

Your elected officials have employees / volunteers that make less than minimum wage. Ask them how you can hire people at the same rate they do. "Rules for thee but not for me."