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Remember being told "you don't understand economics" (Ron Burgundy alert)

and what about the employee who's struggled to get up to $15/hour only to see minimum wage increase now erase that hard work and effort? do those people - and those on up the salary ladder - also get a bump in pay?
 
What all these progressives aren't coming out and saying is, What they REALLY want is for businesses to pay more to their employees and fund that through lower margins.

Trog also forgets that if you pay your most entry level, inexperienced, unskilled employees 15.00/hour you have to raise the wages of everyone above them too. As it stands the average payroll costs for a restaurant are 30-35% of gross. The average profit margin is around 3-5%. There is really not much room to jack up your entire payroll costs without going out of business.
 
Ron just explained, using specific rates, WHY YOUR STATEMENT IS NOT TRUE. The employer also has to pay (in California) about 45% of the additional wages as government-mandated "benefits" (now my least favorite word in the English language).

So, no, the employer does NOT have to charge an additional price to cover the $10 an hour or more total cost to the employer.

Oh, and news alert, genius. The employees get paid to stand at the counter and pick their butts. That clock NEVER stops ticking, that money NEVER stops going out of the till.

However, the restaurant DOES NOT, AS IN DOES NOT, sell burgers at a constant stream, from 11:00 a.m. to 10:00 p.m. So the amount of money coming in varies significantly, at times reaching zero or close to it. So the restaurant needs to cover the labor and associated costs with the burger sales, at times when the restaurant's burger sales are effectively ZERO.

Meaning, burger prices don't go up to cover the cost on an even basis. The burger cost must go up by more than enough to cover "$10 an hour for each employee" to account for the times where sales are much lower.

Jesus!

If people are standing around because business is slow, THEY GET SENT HOME. It’s not just restaurants that do it either. How don’t you know that?
 
Jesus!

If people are standing around because business is slow, THEY GET SENT HOME. It’s not just restaurants that do it either. How don’t you know that?

You really are slow.

(1) Employers cannot afford to overstaff, but also cannot afford to understaff. It costs them money.
(2) Do you have some magic 8 ball to predict expected business for any day? If so, share it with restaurant owners.
(3) Send people home? Genius. You are really looking out for the "little guy," aren't you?
(4) Oh, and talk about lose-lose. Guy scheduled for 6 hour shift, business slow at hour 3. Send him home? Guess who gets paid for the full shift? Yeah, the employee.

(Aleman v. AirTouch Cellular (2012) 209 Cal.App.4th 556, 571 [146 Cal.Rptr.3d 849, 858] [the clear language of subdivision 5(A) of Wage Order 4 dictates that when work is scheduled, reporting time is owed when an employee is not furnished with his or her scheduled day's work].)

Stop trying to be an amateur lawyer; you suck at it. Stop trying to be an economist; incredibly, you are even worse at that.
 
Jesus!

If people are standing around because business is slow, THEY GET SENT HOME. It’s not just restaurants that do it either. How don’t you know that?

Jesus! Have you ever run a restaurant or other retail business? You can't just keep sending people home and bringing them back in the minute you get slow or busy. It's unpredictable. Sometimes you don't have enough employees, other times you have too many. And try keeping employees without giving them any semblance of scheduling ad income predictability.

You don't set payroll based on how many hamburgers you sell per hour. You set payroll based on your projected overall weekly, monthly, annual sales, keeping payroll at such a percentage that you can hire and retain good people and still make a profit. Payroll is generally the number one expense for a restaurant. It's not like there is a big pile of money the owners are hoarding and just choosing not to pay to their employees. The owners of the restaurant have to make money too, otherwise why on earth would they bother investing in a restaurant? Should they make the same or less than the pimply high school kid who takes orders at the drive through?

And only in your little fantasy world can you just change the prices of things and not have it affect how many you sell.
 
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Jesus! Have you ever run a restaurant or other retail business? You can't just keep sending people home and bringing them back in the minute you get slow or busy. It's unpredictable. Sometimes you don't have enough employees, other times you have too many. And try keeping employees without giving them any semblance of scheduling ad income predictability.

You don't set payroll based on how many hamburgers you sell per hour. You set payroll based on your projected overall weekly, monthly, annual sales, keeping payroll at such a percentage that you can hire and retain good people and still make a profit. Payroll is generally the number one expense for a restaurant. It's not like there is a big pile of money the owners are hoarding and just choosing not to pay to their employees. The owners of the restaurant have to make money too, otherwise why on earth would they bother investing in a restaurant? Should they make the same or less than the pimply high school kid who takes orders at the drive through?

If we sent our hourly workers home every time they are caught up on production we wouldn't be able to keep any of them employed. They'd quit.

Owners making money is racist.
 
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Jesus! Have you ever run a restaurant or other retail business? You can't just keep sending people home and bringing them back in the minute you get slow or busy. It's unpredictable. Sometimes you don't have enough employees, other times you have too many. And try keeping employees without giving them any semblance of scheduling ad income predictability.

You don't set payroll based on how many hamburgers you sell per hour. You set payroll based on your projected overall weekly, monthly, annual sales, keeping payroll at such a percentage that you can hire and retain good people and still make a profit. Payroll is generally the number one expense for a restaurant. It's not like there is a big pile of money the owners are hoarding and just choosing not to pay to their employees. The owners of the restaurant have to make money too, otherwise why on earth would they bother investing in a restaurant? Should they make the same or less than the pimply high school kid who takes orders at the drive through?

And only in your little fantasy world can you just change the prices of things and not have it affect how many you sell.

YES! I worked in three different restaurants all through college. Guess what? In one of the places, we’d even send people home after the lunch rush and have them come back for the dinner rush and they loved it because they didn’t have to sit around being bored not making any tips.

If a restaurant owner is smart they have an idea of their revenue and cost per unit. So, yes, if you primarily sell burgers, you do set a price based on costs. Many restaurants go out of business because they never figure that out.
 
If a restaurant owner is smart they have an idea of their revenue and cost per unit. So, yes, if you primarily sell burgers, you do set a price based on costs. Many restaurants go out of business because they never figure that out.

You thought that raising wages by $7.00 per hour cost a business owner $7.00 per hour. In short, you would be one of the dumbasses who could not figure out costs and was out of business.
 
YES! I worked in three different restaurants all through college. Guess what? In one of the places, we’d even send people home after the lunch rush and have them come back for the dinner rush and they loved it because they didn’t have to sit around being bored not making any tips.

If a restaurant owner is smart they have an idea of their revenue and cost per unit. So, yes, if you primarily sell burgers, you do set a price based on costs. Many restaurants go out of business because they never figure that out.

MY GOD! You have it all figured out!
when is Flog's Bullshit Burgers going to open?
 
MY GOD! You have it all figured out!
when is Flog's Bullshit Burgers going to open?

I'm sure there will be a lot of vegan options on the menu. And soy lattes. The employees will mostly be Arab trannies.
 
Ironically, Trog, your argument highlights what several economists are saying about a universal $15.00 minimum wage.

It will drive unemployment because, you guessed it, when businesses can't make their margin they'll let people go. Not just home for the day. They'll lay them off. You sort of cavalierly suggest "Ah heck. Send the kid home." Ok, that's 1 person of your 5 person shift. You are now paying a base wage of $60 an hour over $75 an hour for your entry level people. More if they've been there 6 months or so. (Unless you are also arguing the minimum wage increase should freeze or limit pay raises for more experienced hourly employees, another certain result.) So, restaurateur Steve is paying a base of at least $60 an hour, while down one guy because it was "slow". Just a few short months ago he was paying perhaps $50 to $60 an hour for a full 5 people on shift, but that's changed now.

He has no choice to make his margin but to reduce his staffing and force the remaining crew to work harder. And despite the fact that they work harder and are more efficient, he can't give them raises for doing a great job because again... margin.

Nobody is saying, "Hey, we don't want people to make more money." Every one of those minimum wage employees should have every opportunity in the world to excel and get position and wage increases as they demonstrate the are excellent employees. But this mandatory minimum wage robs the employees of the need to demonstrate proficiency and excellence and it hamstrings those that do.
 
This thread is a good example of people who base their theories on a utopian fantasy land because they have no real world experience and people are based in the real world because they have actually worked and experienced the topics they speak about. The contrast is stark.
 
This thread is a good example of people who base their theories on a utopian fantasy land because they have no real world experience and people are based in the real world because they have actually worked and experienced the topics they speak about. The contrast is stark.

what? surely you jest. Flog said he worked in restaurants while attending Boston University. He ranks up there with luminaries as AOC with his intellectual prowess and knowledge of all things economic.
 
what? surely you jest. Flog said he worked in restaurants while attending Boston University. He ranks up there with luminaries as AOC with his intellectual prowess and knowledge of all things economic.

article-2092.jpg


Ocasio-Cortez Severely Burned After Accidentally Touching Book On Basic Economics
 
You really are slow.

(1) Employers cannot afford to overstaff, but also cannot afford to understaff. It costs them money.
(2) Do you have some magic 8 ball to predict expected business for any day? If so, share it with restaurant owners.
(3) Send people home? Genius. You are really looking out for the "little guy," aren't you?
(4) Oh, and talk about lose-lose. Guy scheduled for 6 hour shift, business slow at hour 3. Send him home? Guess who gets paid for the full shift? Yeah, the employee.

(Aleman v. AirTouch Cellular (2012) 209 Cal.App.4th 556, 571 [146 Cal.Rptr.3d 849, 858] [the clear language of subdivision 5(A) of Wage Order 4 dictates that when work is scheduled, reporting time is owed when an employee is not furnished with his or her scheduled day's work].)

Stop trying to be an amateur lawyer; you suck at it. Stop trying to be an economist; incredibly, you are even worse at that.

So if a NICU schedules 20 nurses, but they only have a census of 10 babies, they can’t call people off or send them home? Alternatively, they can’t have people on call, they have to be scheduled?
 
Flog is Milton Friedman reincarnated.
 
So what the **** good is it to make 15$ an hour only to have your hours cut in half?
 
And another thing, if some greenhorn comes in at $15 an hour and I make $25 an hour, now I need $35 an hour because I'm more experienced and better at my job than the greenhorn. You know what's gonna happen, we're never going to hire that $15 an hour greenhorn and I'm going to have a larger workload at the same $25 an hour. My God, this **** isn't hard for the critical thinker.
 
So if a NICU schedules 20 nurses, but they only have a census of 10 babies, they can’t call people off or send them home? Alternatively, they can’t have people on call, they have to be scheduled?

Add "How hospitals work" to the list of things you don't have a ******* clue about. (I worked at AGH for ten years.)
 
YES! I worked in three different restaurants all through college. Guess what? In one of the places, we’d even send people home after the lunch rush and have them come back for the dinner rush and they loved it because they didn’t have to sit around being bored not making any tips.

If a restaurant owner is smart they have an idea of their revenue and cost per unit. So, yes, if you primarily sell burgers, you do set a price based on costs. Many restaurants go out of business because they never figure that out.

Ok let's see if I can say this any more simply...yes, of course you SCHEDULE more employees during your projected busy times and fewer during your slow times. But what you DON'T know is whether this Tuesday at lunch is going to be half as busy or twice as busy as last Tuesday at lunch. You do not know if the rush is going to come in slightly earlier or slightly later It is virtually impossible to know day to day and hour to hour exactly how busy you're going to be at any given time. Therefore, certainly you do your best to minimize that but it's not an exact science. Will you sell 40 burgers this Tuesday or will you sell 20 burgers, 5 cups of coffee, 5 ice cream sundaes and 5 appetizers? YOU DON'T KNOW. Therefore it is impossible to set a "per burger" price increase to cover a "per hour" wage increase. You look at your gross revenue, your other costs and figure out what number you need to be at to keep payroll at a reasonable percentage of that. You pay people accordingly. You can't just decide "Heck I'll just pay them more" because that money has to come from somewhere. Your profit margin is generally way too thin to be able to double or more your payroll costs.

And you have stubbornly ignored the many times it has been pointed out to you that the hourly wage increase to those who make the minimum is NOT the only cost increase you're going to incur. And you stubbornly refuse to acknowledge the basic economic fact that higher prices will result in lower volume of sales. Virtually without fail. So you have to figure that in too.

I ran a 2 million dollar a year retail business. None of this is as simple as you seem to think it is.
 
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And you have stubbornly ignored the many times it has been pointed out to you that the hourly wage increase to those who make the minimum is NOT the only cost increase you're going to incur. And you stubbornly refuse to acknowledge the basic economic fact that higher prices will result in lower volume of sales. Virtually without fail. So you have to figure that in too.
No, his union told him that companies have all kinds of money and there are not other costs.

I ran a 2 million dollar a year retail business. None of this is as simple as you seem to think it is.

My new favorite video clip.

 
Add "How hospitals work" to the list of things you don't have a ******* clue about. (I worked at AGH for ten years.)

AGH doesn’t have a NICU, or a nursery, so what exactly did you do there? Please do clue me in and explain how a hospital works.
 
The risk of all the downside is always on the owners......they can only transfer downside risk by lowering their commitments to employees.....lower hours, less employees.

Trog, have you owned a business where you were the only responsible person for the jobs, pay, hours of your employees?

Sent from my SM-N950W using Steeler Nation mobile app
 
AGH doesn’t have a NICU, or a nursery, so what exactly did you do there? Please do clue me in and explain how a hospital works.

Ahh, but you see they did when I worked there.* My job took me all over the hospital and I was in the NICU almost every day, along with the regular nursery, CCU, ICU, Trauma, etc. Anyway, hospitals have some nurses that work in a regular unit all the time and some that work all over depending where they are needed. Of course that doesn't fit with what you're sure is correct but you're a ******* idiot so it's not like I care what you think and why I don't waste much time with you. For example, I didn't say I work there now, I said I WORKED there, meaning past tense, but reading comprehension has never been your strong suit either.

* A lot of hospitals gave up birthin' babies because malpractice insurance got to be too high.
 
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