Many new laws went into effect on January 1, 2024 which will disproportionately harm poor people. 22 states raised the minimum wage. Minimum wage laws disproportionately hurt the very people they claim they are trying to help. When wages are raised by artificial mandates, and revenues do not increase, the costs are passed on to consumers. Already multiple pizza chains have fired pizza delivery drivers in California due to the minimum wage hike. Pizza Hut alone fired 1200 delivery drivers. Minimum wage hikes mean fewer jobs available for low skilled workers, lower benefits, and fewer hours worked. The vast majority of minimum wage studies show that it does reduce employment, benefits, and work hours of minimum wage workers. The CBO claimed a $15 minimum wage hike on federal wages would cost 1.3 million people their jobs.
California just raised the minimum wage of health care workers to $22 an hour. This is great for the healthcare workers - provided they don't get their hours cut, their benefits cut, or lose their jobs. Health care costs, particularly those incurred by state covered patients are passed on to private health insurance holders. According to
Minimum wage hike for California health workers will cost billions. Workers say they need it, taxpayers will have to pay $4 billion more a year, with costs expected to go up. Private insurance companies are projecting health insurance rates in the states to go up 10 - 20 percent. With initial plan rates going up 9.6% with more to follow in the next few months.
According to
Minimum wage pay increase already impacting local workforce will cost restaurant workers in California up to 50,000 jobs:
"Some estimates suggest that we could have up to 50,000 jobs lost in the state of California,"
What minimum wage hikes do is make the unemployment rate higher for Black workers, and reduce the jobs available for low skilled workers. With fewer jobs, less benefits, and fewer work hours given, this in turn pushes some low skilled people to use more social services, or to supplement their income with money gained from criminal activities. See
The unintended effects of minimum wage increases on crimeUsing data from the 1998–2016 Uniform Crime Reports and a difference-in-differences approach, we find that a 1 percent increase in the minimum wage is associated with a 0.2 to 0.3 percent increase in property crime arrests among 16-to-24-year-olds, an effect driven by an increase in larceny-related arrests. The magnitudes of our estimated elasticities suggest that a $15 Federal minimum wage, proposed as part of the Raise the Wage Act, could generate approximately 309,000 additional larcenies. Job loss emerges as an important mechanism to explain our findings, and supplemental analyses of affected workers in the National Longitudinal Survey of Youth 1997 show that this effect is concentrated among workers bound by minimum wage increases.
And just who will be the main victims of the increased crime rate? The poor.
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According to the Harvard Business Review, every $1 increase in the minimum wage, the number of hours each worker worked per week decreased by 20.8%:
Notice that the cumulative effect of the minimum wage hike was to decrease the average minimum wage worker's income by 13.6%.
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The rich can also relocate to avoid paying higher taxes. Recently, Musk moved to Texas, a state that has no income tax.
France is another example of the limits of a wealth tax. After imposing higher taxes on the rich, more than 40,000 millionaires left the country."
https://www.npr.org/2021/11/13/1054711913/progressives-wealth-tax-super-rich-elon-musk-jeff-bezos
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Politicians are well aware of minimum wage research and know that minimum wage hikes hurt minimum wage workers. Know that their interests are not the same as the workers. Their interests are to get reelected, not to make things better for minimum wage workers. As long as the media doesn't run too many stories on how the minimum wage hurt minimum wage workers, they can sell their bill as them helping the poor.
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Yes, the rich, liberal and conservative alike take advantage of loop holes. And the same rich on the liberal side love to make speeches on how raising the minimum wage will improve life for the working poor and the poor. Never does. Do you ever wonder why your rich liberal leaders (who often hob nob with their counter parts on the other side of the isle) try the same thing over and over always getting the same failed results? Meeting the definition of insanity? It's because they're getting the results they like. Let that sink in if you can.
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McDonald's $18 Big Mac Meal Goes Viral Again As Fast Food Minimum Wage Hike To $20 Triggers Fears Of Skyrocketing Prices And Layoffs, Leaving People Questioning: 'Maybe This Went Up Way Too Fast'
$18 for a Big Mac meal in Connecticut!!!!!! The amount of inflation from the Democrat's minimum wage bill is going to cause minimum wage workers to suffer even more.
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Mass layoffs begin in California as corporations retaliate against new state minimum wage laws
The Marxist news site is surprised that corporations would respond this way. What socialists don't get is that companies exist to make a profit. They pass on their costs - to their employees (by cutting hours, benefits, or jobs) or to their customers (by increased costs). Instead of helping low wage workers the rate hike has just cost them their benefits, hours, or jobs, and make everything they buy more expensive. You can't artificially raise wages without raising inflation or hurting workers in other ways, but SJWs want to feel good, even when they are doing evil.
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"Some estimates suggest that we could have up to 50,000 jobs lost in the state of California," explains David Smith, a professor at Pepperdine University. - Minimum wage pay increase already impacting local workforce
I wonder if the people who lose their jobs and can't find a job will think that the minimum wage increase helped them, or hurt them.
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I am not sure what they teach in schools that makes people oblivious to this simple logic. Has anyone ever seen anything at all in life working like this: something becoming more expensive, yet no less attractive? "Hey, let's increase the price of our gym membership from $20 to $50 a month; we cannot lose any customers, can we?!" - said no one ever.
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The long-term inflatory effects you are talking about are more complex, yet even they are not that hard to predict for someone who has done any study whatsoever of basic economics, or thinking about basic economical effects without seriously studying them. I have to think that people purposefully blind themselves to simple logic when it conflicts with their moral values. If someone believes that it is somehow fundamentally unjust to pay below a certain amount of money for even a very easy job, then they will put this moral judgement above any logical considerations. Even in this case I do not think it fair to call it "unintended consequences". If I drink a bottle of vodka while repeating the mantra, "I will not get drunk, I will not get drunk" - should I be surprised when I wake up next morning with a galactic headache?
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Self-employment in California fell by 10.5 percent and overall employment tumbled by 4.4 percent after A.B. 5's implementation. - California's Attack on Gig Work Predictably Drove Workers Out of Jobs
Worse, Inflation Joe wants to do nationally what California did to its gig economy. So this will devastate the part-time careers of musicians, wedding planners, drivers, photographers, actors, bakers, etc. We all see how this helps unions which contribute lots of money to Democrats, but how does it help the gig economy or gig worker?
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@just_sayin
Firstly, many economists said that we would be in a recession at this point. Far from it. Secondly, inflation has decreased greatly. Thirdly, I find it curious that wealthy corporations are not being scrutinized as being at least a contributor to inflation. Because McDonalds raises their costs on food does not necessarily mean that minimum wage increases is the problem. To say the expensive McDonalds meal is because of minimum wage increase is a simple minded view of a very complex problem.
How about looking into corporate greed and price gouging as another contributing issue?
- McDonald's gross profit for the twelve months ending September 30, 2023 was $14.317B, a 9.63% increase year-over-year.
- McDonald's annual gross profit for 2022 was $13.207B, a 4.98% increase from 2021.
https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/gross-profitI find it concerning that not only are ¨liberal¨ policies being blamed, but lower and middle class Americans are being exploited as wealthy corporations are profittering while being protected from criticism. It is a typical misconception that ¨socialist¨ policies are driving the failing economy while the shielded corporations continue to profit yearly. This is quite evident when researching corporate profits during and after the pandemic. It´s sad that we´ve been reduced to exploited peasants left to fend for each other while the wealthy profiteer. Have you seen the rise in ¨GoFundMe¨ pleas? Many Americans cannot afford health care costs so they not only are struggling with the trauma of loss or ill health, but they need to appeal to other struggling Americans for help to pay their health care costs. And, how about grocery stores (the lower end of the profitterring chain)? To continue their pilfering, they are using automated check out now - so it´s a double insult for customers. They not only pay exorbitant prices caused largely by corporate profiteering; now insult is added to injury by making the ripped off customer do their own work to check out.
Rising gas prices? Supply and demand at first, but after supply chain problems were cleared, they continue to profit. The below is an example of profiteering.
I believe that inflation causes are many and complex, but corporate profiteering should be examined more broadly as a major contributor to inflation. I do believe many Americans are ignorant and tend to wrongly blame the presidency. Many are either misinformed and disinformed by right-wing news channels (that profit off of sensationalizing and mis,disinformation). It´s time Americans consider that lower and middle income Americans are being exploited. We are being gentrified by corporatism. The chasm between the wealthy and middle class is widening.
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It is right to blame a presidency that actively manipulates the economy in order to coerce their own citizens into a transition that no one is even close to be able to successfully accomplish. Biden pulled the rug out from under our energy companies with the pipe line and pretending to grant leases on federal land only to stop them in their tracks in a sea of red tape. He did this as a promise to fellow socialist to get big oil. So yes, Biden caused it on purpose and he deserve no credit for any marginal recovery that comes about despite his sabotage. We have enough oil in the ground within our borders to supply the world. And it would be much cleaner burning and producing the oil so we would also reduce our carbon foot prints as well. Ah but that's just another ploy used by the left to use in their never ending search for the main prize, centralized power over the people. So yes, socialism and this presidency did cause inflation. Be proud, it was calculated.
Large corporations are in business for profit. That's the American dream, work hard, make money, let your money make money. It is in this way capitalism provided jobs and careers, and thus brought our country out of poverty and into prosperity. I'm retired, and no longer make a wage. But I am still making money because my retirement account is making me money. You seem to confuse that with profiteering. If you need an example of profiteering, check out the oligarchs in socialist russia.
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McDonald's profits are up for several reasons - they raised prices (due to leftists policies like minimum wage hikes), and digital orders (thanks to leftists policies like in California where the gig driver pays more now), and they cut their work force - yet again thanks to leftist minimum wage hikes.
In 2013, McDonald's had 400,000 employees, in 2023, it has 150,000. In 2022 it had 200,000. See at trend? Leftist policies have resulted in far fewer jobs and have sped up automation and kiosk services. McDonald's passed on those leftist minimum wage hikes to customers, and still fired 50,000 employees. Thank you leftists for hurting even more workers.
If leftists weren't so greedy and envious, and instead wanted to help workers, they would not have implemented the minimum wage hikes, nor the anti-gig bills like in California. These devastated workers. 60% of minimum wage jobs are second jobs that people pick up to make extra money. 44.7% of all employees earning the federal minimum wage are between the ages of 16 to 24. Their jobs are the ones that are disappearing. If the goal was to make people dependent on government handouts, then Biden's policies succeeded.
Biden's Inflation act triggered massive inflation. You may try and say that inflation month over month has slowed, but when you look back to the day Biden took office, everyone can see that Bidenflation has harmed working families.
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It is right to blame a presidency that actively manipulates the economy in order to coerce their own citizens into a transition that no one is even close to be able to successfully accomplish. Biden pulled the rug out from under our energy companies with the pipe line and pretending to grant leases on federal land only to stop them in their tracks in a sea of red tape. He did this as a promise to fellow socialist to get big oil. So yes, Biden caused it on purpose and he deserve no credit for any marginal recovery that comes about despite his sabotage. We have enough oil in the ground within our borders to supply the world. And it would be much cleaner burning and producing the oil so we would also reduce our carbon foot prints as well. Ah but that's just another ploy used by the left to use in their never ending search for the main prize, centralized power over the people. So yes, socialism and this presidency did cause inflation. Be proud, it was calculated.
Large corporations are in business for profit. That's the American dream, work hard, make money, let your money make money. It is in this way capitalism provided jobs and careers, and thus brought our country out of poverty and into prosperity. I'm retired, and no longer make a wage. But I am still making money because my retirement account is making me money. You seem to confuse that with profiteering. If you need an example of profiteering, check out the oligarchs in socialist russia.
Profits or profiteering?
The Guardian’s findings are in line with recent US commerce department data that shows corporate profits rose 35% during the last year and are at their highest level since 1950. Inflation, meanwhile, rose to 8.5% year over year in March.
The Guardian’s analysis is the first to take a granular look at a cross-section of companies across a range of industries. It compared the most recent quarter’s profits to the same quarter two years prior, pre-pandemic. Price increases were obtained by checking earnings reports, though those often lacked specifics.
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@just_saying
Ya´ll are watching way too much Fox.
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The idea that increase of the minimum wage leads to decrease in demand of labor and, therefore, increase of the cost-to-compensation ratio is not "Fox", but one of the most basic facts of economics.
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That's what gets me. It must be a prerequisite to deny reality to be pro socialist. When someone says "I have researched your claim that Biden actively manipulated the economy and find absolutely nothing on this." They deny biden says he controls the economy when he takes credit for unexpected up ticks in the economy. That they claim he should have the credit! Can't really debate that. Just got to point out the folly and move on.
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I think there are two possible cases here.
The first case is just plain ignorance. Basic economics is not overly complicated, but someone who has never studied any of it and never thought deep about these issues is unlikely to figure it out on their own. I remember back in my first undergraduate year picking up two books, one on micro- and another on macro-economics, and having a revelation upon a revelation while reading them: "Hey, this makes perfect sense! Why have I never thought about it before?"
Without the basic awareness of some aspects of economical processes one will have a very primitive understanding of the subject. They will think that money is just something the government prints and arbitrarily assigns value to, that corporate bosses can randomly get greedy and raise prices on their products and only their conscientiousness may prevent them from doing so, that market is incapable of providing certain goods that people need especially hard and so the government has to provide them...
The second case is worse: dishonesty. It is when the person does understand basic economics, but pretends that in the real world things do not work the way logical reasoning suggests they should. Karl Marx was the most prominent example of this: the guy clearly understood economics well, but decided that it was somehow immoral, and that if a "new man" was raised, then the basic laws of nature could be evaded. That is the denial of reality you are pointing out.
The former group is poisoning societies on the West currently, but the latter group is what leads to creation of some of the most horrifying regimes in human history. It is Bernies and Noams of this world.
The former case is remedied by education: someone who does not understand economics, but is open to understanding it, can spend a month, get into the basic processes, and their prior view on economics will crumble - unfortunately, most people are not willing to do that. The latter case though is chronic: denial of reality is something that is an inherent coping mechanism for many (all?) people.
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Who can argue against such informative logic May? Yet I'm sure you find plenty who do.
The thing is the modern socialist doesn't have a clue where there ideology was derived from. Except the puppet masters orchestrating their movement as you insightfully pointed out in your two types theory. They truly are the dishonest ones. They know they're following the play books of Marx and Engels. https://en.wikipedia.org/wiki/Marxism#Schools_of_thought
Yet if you correctly refer to their ideology as communistic they rear their heads back and scoff saying no, socialistic! They're the dishonest ones for sure. Because they know Marx made no distinctions between communism and socialism, often using the two words interchangeably. And of course marxism calls for complete governmental control. Which is the prime directive of every leftist politician, especially on the national level and the Presidency. That's the presidents job, to manipulate things in favor of their party. That's the way the left sees it. Especially where 'human rights' and the economy are concerned. Why would a barmaid worried about loans get so hysterically mad at biden cause it's been two years and her and her drinking buddies still owe money they borrowed? LOL Yes @Openminded, biden manipulates the economy when he can.
I do get the coping mechanism of self willed ignorant ones though. I mean who would want to give up pie in the sky dreams where nothing has to be paid for and government is a benevolent entity that magically produces and distributes to all with no self interest what so ever?
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Why are you so concerned about McDonalds making a profit of 13 or 14 billion during those time frames. Did you see how much they put back into the economy? Didn't see it on your post anywhere. Or their expenditures after the biden inflation era took hold. Just imagine how many cars, houses, families paying bills and buying groceries... All that society gains from one corporation. Try looking that part up as well. And no I will not do it for you.
Then look up the tens of billions socialists in government gives away to support their interests abroad. 70 billion in 2022 alone. What do they offer our society for that? I will offer you one source that can give you a clue how much of our money is taken from us and given away to other countries. Keep in mind, government steals a persons money before that person even sees their pay check. You really need to learn to read things with objectivity:
https://www.usnews.com/news/best-countries/articles/countries-that-receive-the-most-foreign-aid-from-the-u-s
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@Factfinder
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Op-ed pieces often time have facts and well reasoned logical opinions based on the facts. Which is more beneficial for truth seekers than the majority of main stream media outlets. But in the end there is always some bias no matter the source. That's why it's important to apply critical thinking and discernment to everything you hear, not just that, that you disagree with. What that link told you was a background on the plan that had been in place since Obama, you know, who had biden as his vp? The guy who said he would "end fossil fuels" and subsequently pulled the rug out of multiple projects American companies had invested millions and millions in? Well, biden thought since russia wasn't going to supply the west with fuel anymore now (2021 or abouts?) was time to unleash elements of the green new deal plan. Elements he (maybe only his handlers) knew would be terrible for most. Which is now backfiring. So you see, you did see where biden was manipulating after all, you just didn't recognize it! Oh, and obama was no better. He just knew it wasn't the right time to inflict that kind of economic hardship on working americans. His affordable healthcare tax on the working poor who didn't want it, already had burden the country enough.
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@MayCaesar
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You are debating individuals who think about their opinions. References to fox news and what you think are talking points that the right gets from fox or any other news source are demonstrative of having nothing to add, or you want to engage in tit for tat pettiness. I don't either one in your case right now. You've just learned bad debating decorum. Please respond to my post at 8:35 a.m. It addresses your Mcdonalds concerns. Remember, objectivity is used when seeking truths or truisms. I debate because I want to know other peoples opinions on things, not talking points. Greed is not the issue. How does a business benefit society is the issue in discussing the economy. No one denies greedy people exist in all walks of life, including corporate, government and on the streets. But that's not the debate.
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In economics, there is the concept of "wedging" describing the difference between the market value of the asset and its actual value caused by external factors making independent exchange impossible. When the government prices labor of a certain kind above its market value (and its market value is not a result of whims of evil greedy capitalists, but very specific, if you will, mathematical calculations done regardless of anyone's personal desires), the wedge results in sharp decrease of its demand. It can not lead to "satisfied employees". Nobody is going to be satisfied as a result of decrease in demand of their services. Just like you are not going to be satisfied if tomorrow half of your friends decide that befriending you is too much trouble and tell you to shove off.
The whole framing of the market as the class struggle (to use Marx' terminology), where workers are "against" corporations, is a fantasy. In reality, this is a large marketplace in which interests of individuals both collide and align. McDonalds is neither your enemy nor your friend; it is an organization that offers something to you and expects something in exchange. You seeing as it "exploiting" its workers, or unfairly raising its prices, is yet another example of your ignorance of basic economics. Everyone always sells their product for however much they can get for it, and you are no different: if you get an offer for a higher salary tomorrow for the same work, you will take it.
If you understand and accept a very basic concept - that labor is just another product, not some sort of a slavery arrangement - then all this becomes very obvious. But understanding and accepting it requires a bit of independent and hard thinking, and maybe some basic economical education, as I mentioned earlier. You do not have it, for your reasoning is like in the Golden Antelope cartoon: "evil rich exploiters" and "unfortunate mistreated poor". What a sad, misanthropic and illogical way of seeing the world.
Lastly, "right wing media" absolutely spread economical misinformation, just like "left wing media" do. Their arguments, however, are still much more sophisticated. It is like the difference between the Soviet socialists, and the modern Western socialists: the former actually had complex theories that could not be that easily debunked - the latter are just bored kids with green hair and piercings, ignorant about everything.
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Well it just goes to show that you get what you pay for If you pay cheap then you get cheap. If you pay nothing you get nothing.
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Fast food workers are losing their jobs in California as new minimum wage law takes effect
California Restaurants Cut Jobs as Fast-Food Wages Set to Rise
Predictably as California's new minimum wage increase is about to take effect - thousands of jobs are being lost and wages and benefits are being cut. Who could have predicted this? Answer: Anyone who understands basic economics.  Considerate: 100%  
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