The dollar for the "wally burger" will be spent by the
"entitle-ee" who got it from the government who got $1.25 from the
middle class taxpayer. The 15 cents the corporation received in profit for
providing the service went to the stockholder (11 cents) and the CEO (4 cents).
Not a penny went back to the actual middle class taxpayer or the aspiring one.
And the middle class also protects the corporation from strong armed robbers or
shady business partners (through the government) with taxes it will impose on
the grandchildren of the middle class. The question is: Will those
grandchildren even be there (probably not).You can only draw so much
water out of a reservoir before it dries up. We're in a drought right now
and the economic river has been dammed upstream. Technology does a much better
job of containing the precious resource so there's less waste. 30 years
ago that waste was called "trickle down".
Kaotic,Over the past few years there have been many major news
stories about outsourced jobs returning to the US. When the recession kicked
in, wages here become lower while wages in Asia were rising. I
disagree that more education and training won't create more jobs. If we
have a smarter workforce and a government which encourages technology
advancement, we will have an advantage over other countries.
I can see that in the early 70's what making minimum wage could buy than
and what things cost now. Gas was .25 a gallon. There is a big difference what
40 hours could buy than and now.
I don't understand what all the fuss is about!Let's just
solve the problem of inadequate income and poverty and all kinds of stuff like
that in one fell swoop! Just set the minimum wage to something that is so much
more than "adequate" that virtually **anyone** will be able to live well
on it. Say, $40/hr. Or, just to be safe, how's bout $60/hr. Or.....what
the heck, just to make the math easy and everyone happy, let's set it at an
even $100/hr.!Wahdd'ya think folks? That should solve
Bill Gates also believes in open borders, and flooding the labor market and
depressing wages. It's time for a $10-12 minimum wage. If
automation was possible, he would already be using it.
The math doesn't add up. If wages remain stagnant but the cost of living
increases substantially each year then America will fall deeper into poverty
anyways. We can educate Americans all we want but there will be no jobs for
them after they are educated. We will be a nation of smart, poverty stricken
people because all the jobs were outsourced overseas to people who will work for
$2 an hour. Whether it be manufacturing or anything else. Romney, Gates and
the upper echelon are loving life right now. Obama asked Steve Jobs one time,
"how do we get outsourced jobs back to America?" He emphatically said,
"they will never come back!" Don't believe anything the 1% says.
They will not automate America when foreign workers will still work for $2 an
hour. Inflation and the cost of living in America has outpaced the minimum wage
and higher paying jobs are non-existent for the unemployed workforce we have.
Bill Gates is a smart man and he will tell you anything to keep those profits
Bill is correct. Raising the minimum too high will cause automation. But I still
don't think a couple bucks per man hour is enough to cause any fast food
places to invest in expensive equipment. And I'd bet you could triple the
wage of the people who pick lettuce in the imperial valley and not come close to
justifying the capital cost of a machine to do it, if one were to exist. We can
do better, starting with a more realistic valuation of our work.
Gates has a valid point. I own a very small side business that manufactures and
assembles things. My profit margin is very low but I keep the business because
it gives me a way to support some causes/programs I believe in. Costs of adding
workers is already more than I am comfortable with so when I look for ways to
add production I add automation when possible. It is nothing fancy but if a
machine can help me do a task faster it is usually cheaper in the long run to
buy the machine than to add another worker. I am sure the big boys out there
see it the same way; Just on a larger scale.
Kaotic,Did you read a single response?I am in favor of
helping more people make a wage that they can thrive on. Your original post
said that "people can't make a living on $7 or $8 an hour
part-time." The point of minimum wage is to set the minimum amount people
can be paid. Someone in high school with no skills makes this amount. It was
never intended to be an amount that someone can support a family on while
working part-time.Do you think we should set a minimum wage high
enough that someone can make a living working part-time? If so, how many jobs
do you expect to be lost? Do you think agriculture and service industries will
push towards more automation? Do you think that manufacturers will move more
factories to other countries? It's not about keeping anyone
down. It's about finding real solutions to real problems.
Seems some UTAH Mitt Romney supporters still can't believe he lost.
AMERICA made its choice and that was his policies and agenda would favor the 1%
way too much. That's why he is not living on Pennsylvania Avenue now but
in one of his other 4 homes. Wonder if Bill Gates and Romney have tea once in a
We need to not only educate ourselves, but we need to educate ourselves for the
jobs that are coming in the future. We're still stuck in the behind, it
seems. We're falling behind much of the industrialized world.
Unless there are adequate exclusions for small business, raising the minimum
wage will wreak havoc on the economy. Of course, if the idea is to move towards
socialism then by all means, raise the minimum wage to $30 an hour.
KaoticI'm no expert on the matter so I won't argue to
support or refute Bill Gates. I will say this, it's easy to
discredit him by calling him the 1%, but he's spending the latter years of
his life giving his money away and trying to improve the world. The argument
that he will say anything to save his profits doesn't make sense to me.It's not hard to see that he's right. It's cheaper for
companies to put in self check out machines than pay cashiers, McDonalds has
automated a lot of their processes, Applebees is going to put a tablet at each
table to replace servers, and I'm sure there are countless more examples.
Higher minimum wage will increase the adoption of automation. Raising the
minimum wage too much will help some, but cause others to lose their jobs. Again, I'm no expert, but perhaps the solution is better training
(trade schools, college where applicable, apprenticeship, etc.) to help low
income people earn more without being replaced.
@ KaoticSorry, it is not quite that simple. While it is true that $7
or $8 is not a living wage keep in mind the neither is $10. It's all a little bit of a shell game by all involved but the economics
of this are primarily driven by a society that wants $1 hamburgers and that will
shop at the ever-present Mart to save $0.12 on a tube of toothpaste. It is
further fueled by a global economy where the lowest cost producers will win the
majority of the business. Corporations must have profits to keep the flow of
money coming that fuels investment in growth. This model is not going anywhere
soon.The key to breaking the cycle of poverty is education and
training which leads to higher paying jobs. Minimum wage jobs should be a
stepping stone rather than a landing spot. An artificially high minimum wage
will remove the stepping stone but still be inadequate as a landing spot.
Bill Gates advice, an accomplished businessman vs the community organizer with
zero experience - who do you listen to?
Bill Gates is a smart man. Raising the minimum wage quickly and by too much
likely will hurt those who it is supposed to help the most. Not only will
business have to automate and reduce workforces here, they must look to greener
pastures outside of the United States for customer support. My wife's
cousin is paid roughly $2 an hour at Convergys while way back in the day when I
was a kid I was earning $8.50. Convergys doesn't want to lose profit so
they build more support buildings where they can get college educated people to
work for peanuts without giving benefits. They probably can employ six to eight
more Filipinos PER American by doing this.If the employee cost
shoots up by an increase in the minimum wage, decent High School jobs like
Convergys will simply be created outside the US. It will also cause inflation
as prices will rise to match increased costs. Raising the minimum wage may be
the deathknell of the middle class pushing many into poverty that can't
This is just the 1% talking. They will say anything against delving into their
million dollar profits. People can't make a living on $7 or $8 an hour
part-time. That just plays into the hands of the 1% who couldn't be more
happier about the unequal distribution of wealth in this country. Minimum wage,
part-time hours and no benefits mean big profits for corporate America and too
bad for the working class Americans.