And people will wonder why their prices will rise and they will hire fewer
people as a result. What's worse is the false prescedent set that you can
get paid more than your worth, more for doing less, and reduce the worth of the
salaries of people who actually went to college, trade school or started a small
business (which will now be increasingly harder for start ups to afford which
will require another government supplament program to solve the problem they
created and now they get a say in how you run your business because you need
them). Meanwhile the rest of us whose salaries were middle class before have our
standard of living reduced closer to the poverty line (thanks to increased cost
of production and operation)and in the end only more government subsidies are
needed to cover what we were originally doing fine by ourselves and self
sustaining. Enjoy your future 7.00 Big mac, Nevermind it used to be .99 cents.
Wow I guess the new standard of fine dining in the future will be McDonalds.I
wanted to be an astronomer or engineer when I was young. Now we can all be
LOL! This has nothing to do with the "minimum wage". This is the market
in action. It happens all the time. The market will push wages to whatever it
needs to be in order to "clear". Firms have to compete with each other
for employees and they do this by raising the wage. For example, a few years ago
McDonald's was advertising for employees at 7.00 per hour and the minimum
wage at the time was only 5.15. People were amazed by this!!! Was
McDonald's doing this to be nice? NO! McDonalds was paying 36% higher wages
than required by law because they were in competition with Burger King, Taco
Bell, Walmart, etc. for workers. They (and other firms that employed unskilled
labor) had no choice. There is nothing altruistic about it. This is the beauty
of a competitive marketplace. We are seeing the forces of competition at work
and those who are getting a raise have the market to thank.
The Gap and IKEA really don't hire workers at the minimum wage. Minimum
wage is for broom pushers and burger flippers.
Don't worry Liberty, Ikea doesn't have do anything in regards to wages
except meet the laws.I see where Max is coming from but have a
different or additional angle. A lot of big corporations are getting bad press
for their "exploitation" of their employees. Perhaps IKEA and others
are responding to this criticism. They want the positive publicity that comes
with treating their employees with more dignity or pay. Many customers, such as
myself, will likely frequent these places, if given the choice, because we know
their competitors aren't doing as much. I also think higher paid employees
that are treated better will do a better job in providing service. They might
go beyond the minimum. They aren't as stressed. Heck, they might even
have more money in their pockets to buy the stuff their company is selling. So
I do see some free market at work but maybe in a slightly different way. Good
for IKEA and The GAP!
Howard Beal, you further made my point. It is the competition between firms that
is driving wages higher -- not the government! This is the marketplace at work.
I feel better about shopping at those stores.