oilycreek
Banned
Look in the sky, it's a bird, it's a plane, no it's my point, never mind, you missed it.
who hired this guy?
- Thread starter Dirty Frank
- Start date
Look in the sky, it's a bird, it's a plane, no it's my point, never mind, you missed it.
Snobike Mike
Banned
You've missed the point. Not only do their taxes go up at the marginal/increment tax rate, so does the cost of goods because of both the inflationary pressures and also because of the input cost increases. It's not a static system where you change only one item (minimum wage) and everything else remains the same, and this is why raising the minimum wage doesn't have the benefits you are looking for.
oilycreek
Banned
I
They would still be a head of the game with an increase in wage, all that extra money doesn't go to taxes, and that includes taxes on things that buy now, and merchandise purchases.
Minimum wage should be 15/ hr
They would still be a head of the game with an increase in wage, all that extra money doesn't go to taxes, and that includes taxes on things that buy now, and merchandise purchases.
Minimum wage should be 15/ hr
dasiffy
Well-known member
there are 2080 hrs/year based on 40 hrs/week and 52 weeks/year
Lets say minimum wage is $10.00/hour. Which gives you 20800 gross
In the bottom tax bracket, all dedections, (cpp/ei/ prov. tax/fed. tax) work out to roughly %20 of gross...
so 20% of $20800 is $16640. Which would be your take home.
now lets say it costs $1.00 to ride the bus.
that's 16640 bus rides per year.
now lets say minimum wage gets raised $2. Thats 20% So now you get $12/hr
Great right?
well...
now you make $24960 gross income
which means $19968 take home
But the bus now cost $1.25 to ride. The same 20% increase.(bus rides are tax included pricing )
So now you can only afford 15974 bus rides.
And the difference in number of bus rides...
666
_______________
wages should be lowered, not raised.
cost go down, prices go down.
Lets say minimum wage is $10.00/hour. Which gives you 20800 gross
In the bottom tax bracket, all dedections, (cpp/ei/ prov. tax/fed. tax) work out to roughly %20 of gross...
so 20% of $20800 is $16640. Which would be your take home.
now lets say it costs $1.00 to ride the bus.
that's 16640 bus rides per year.
now lets say minimum wage gets raised $2. Thats 20% So now you get $12/hr
Great right?
well...
now you make $24960 gross income
which means $19968 take home
But the bus now cost $1.25 to ride. The same 20% increase.(bus rides are tax included pricing )
So now you can only afford 15974 bus rides.
And the difference in number of bus rides...
666
_______________
wages should be lowered, not raised.
cost go down, prices go down.
Red_Liner740
Well-known member
And with that 15 hr minimum, fuel price is now $1.50, that loaf of bread is now $2 instead of $1.75.....Prices will rise due to a certain segments rise in buying power. Rise the buying power and the market will adjust just like a sponge. Only problem is, unlike general inflation which hopefully raises everyones prices, a minimum wage worker is the only one that benefits short term, while you and me see an increase in prices and no increase in our jobs value.
Thats why there's usually a tip jar at minimum wage service jobs. You want to subsidize their pay? knock yourself out....
Snobike Mike
Banned
Missed again!
Aside from taxation increases which you seem stuck on, please note they would also experience an increase in the cost of their purchases/rent/etc due to both inflationary pressures and input cost increases. By your math, assuming full time work you would be requiring an cost input increase of $10 000/yr for employers and also be adding $10 000 per year in dollars chasing the goods that they are purchasing. It's simple economics. If they do end up ahead it certainly won't be by much.
And there is a "cost" aside from the $5/hr increase you are wanting. They include but are not limited to the inflationary pressures reducing the purchasing power of everybody else that didn't receive a 50% increase in their incomes. For those already earning $15/hr you are actually costing them in your attempt to benefit those earning $10.25 now but increasing them to $15/hr because of the above noted items (which is by no means an exhaustive or complete economic assessment of the problems caused by raising the minimum wage).
oilycreek
Banned
By that logic no one should be able to afford anything.
oilycreek
Banned
This is just about someone that has a decent job, and isn't willing to pay a little more for things so others can make a little more. IT'S CALLED GREEDY.
Red_Liner740
Well-known member
Whats scary is that you as a father of three is this dense.
Motorcycle Mike
Well-known member
Oily, I really don't think you get it at all.
Lets say a walmart has a 100 employees making $10/hour. That is $1000 per hour cost.
Minimum wage goes up to $15/hour and now walmart is paying $1500 per hour.
Do you think they will just eat that loss? No... they won't. They will either reduce their staffing to 66 employees (making 34 employees jobless with no income), or they will increase their prices, or they will do a combination of both.
So... some people get a raise, some people lose their jobs, and everyone has to pay $15 for that shirt that was $10 last year, so their buying power is either exactly the same or worse (for those that lost their jobs or didn't get a raise). In the end, what was the point again?
Snobike Mike
Banned
I would recommend that you take a basic economics course which will assist you in understanding the detriment of having, or in this case, the increasing a minimum wage threshold.
A free market has all kinds of varying income levels which create a market price/cost metric. That in itself does nothing to make goods and services unaffordable for everyone as you seem to think. Where the problem comes is if you fool by introducing minimum income levels, etc you get the problems (and many others) that I describe. Others herein have provided simple math examples to illustrate what I'm saying. Have a read, they are good examples.
Cheers.
So how much of a tip to you give when you buy a coffee at Tim Hortons?
oilycreek
Banned
I don't buy coffee at Tim Hortons but I do tip at restaurants.
How much do you tip your grocery store cashier? The guy working at the gas station? The convenience store? Anyone else you interact with who makes minimum wage?
oilycreek
Banned
It's not up to me to tip everyone, it's up to the company to pay better, which I'm willing to pay more for my purchases. All you guys are doing is arbitrarily making up numbers at what prices would increase by. I work for a large company that gives raises every year, but that doesn't mean they raise prices every year, sometimes they drop prices.
oilycreek
Banned
So if wages should be lowered, go into your bosses office and ask for a drop in pay. You only need minimum wage, any more then that and you won't be able to survive .
Snobike Mike
Banned
Hypocrite, you say it's not up to you to tip everyone but you are willing to pay more for products if companies increase their prices.
No it isn't, it's up to them to make a profit so they can stay in business and provide products and or services at a price point that the market will bear.
No you are not, you just proved it because you aren't willing to tip everyone whom you think is being underpaid due to low wages paid by companies you don't own.
And you are arbitrarily ignoring the fundamentals of economics.
Glad to see your company works within it's own economic system unfettered by the balance of the free world which surrounds it....oh wait, you are in the macro economy around you which means one example of one company that raises incomes through their own free will in a relatively free market does not prove your point by any logical stretch of the imagination.
Snobike Mike
Banned
We could just switch to communism..........
And here I thought you were willing to pay more for them to make more money.
You have an opportunity to make their lives better by doing exactly what you said you would do. Why don't you do it?
