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Old 06-23-2006, 01:03 PM   #41 (permalink)
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Quote:
Originally Posted by willravel
The income of the company. I don't know why you are making this seem so complicated. Company X has 4 levels of employees. Level 1 is the bottom level worker comprised of 40 people that do manual labor and makes minimum wage (about $10k a year). Level 2 is local managment comprised of 12 people that makes about $15 per hour (about $25k a year). Level 3 is the board of 4 people who makes about $70k a year. Level 4 is the CEO who makes about $750k a year. Is something wrong with this picture?
So all companies look like the one you just described? didn't know that. What about the company without a CEO? What about the guy who runs his own consulting business? Him and his wife are the only employees. They want to hire someone as an office assistant but can only afford to pay $20,000/yr. They put out an add in the paper and someone replies. They want the job and they seem to be ok with the compensation since they responded to the add and accepted the job. Everyone wins.

But if there's a mandated minimum wage that has to be "livable" and that wage is equal to $30,000/yr our consultant can no longer afford to hire and pay for an office assistant. So this assistant still doesn't have a job and this consultant doesn't have an office assistant. Too bad the gov't decided what he had to pay.

Or how about the restaurant owner who pockets $60,000 a year. Employs a staff of 30. The managers make $11/hr, cooks make $8-10, while the busboys, dishwashers, and wait staff all make minimum wage (bus boys and wait staff get tips).

But you, and other people in favor of increasing the minimum wage don't think he should be paying his employees what he does. according to you, not one of his employees is making enough. So after the law is passed he goes out of business because he can't afford to operate his restaurant with any less staff, but he can't afford $750,000 annual payroll expenses either. So he closes his doors.

I could go on and on. Not all businesses are like the one you described. Like I said before. Its real easy to talk about a livable minimum wage, especially when you forget about the average business owner.

Look at your local franchise gas station. Do you think the owner of the stop-n-go on the corner is living the high life? do you think he could afford tripleing his payroll expenses? Those are the people you hurt when you mandate such things.
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Old 06-23-2006, 01:05 PM   #42 (permalink)
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the effects of raising the minimum wage on an economy aren't as ambiguous as bigben implies. the effects have been empirically tested in the past, not proven, true, but tested.

when minimum wages have been raised in the past, jobs haven't disappeared and prices didn't go up. so that argument has historically not bourne out.


as far as the small business owner paying his or her employees and being priced out of business, most of the small business owners I know already pay their workers more than the minimum wage and give excellent benefits. the work environments are often a smaller atmosphere and more cordial than a larger business. the owner/boss is often in the same place and within close proximity to his or her employees. regardless, in the example provided a few comments back, food service workers don't always make the minimum wage because employers can take into account their tips when figuring wages. so that example, specifically, is not going to work to make your point that the minimum wage would hurt small business owners.
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Old 06-23-2006, 01:12 PM   #43 (permalink)
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there's several things being discussed here. I'm not talking about a dollar increase in the minimum wage. That wouldn't help anyone. What's been brought up is a "cost of living" minimum wage or a "livable" minimum wage. Thats what would be detramental.
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Old 06-23-2006, 02:03 PM   #44 (permalink)
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Quote:
Originally Posted by stevo
So all companies look like the one you just described? didn't know that. What about the company without a CEO? What about the guy who runs his own consulting business? Him and his wife are the only employees. They want to hire someone as an office assistant but can only afford to pay $20,000/yr. They put out an add in the paper and someone replies. They want the job and they seem to be ok with the compensation since they responded to the add and accepted the job. Everyone wins.
Not all companies look like the one I described, but it's not uncommon at all. A friend of mine works at Custom Chrome in Gilroy, and that is almost exactly the pay grade of the employees. What about the guy who rusn his own business? Well If his business nets $40 million a year and his worker gets $20k a year, then that poor kid is getting the shaft big time. Like I've said several times: it's dependant on the income of the top. If, in your hypothetical business, the owner makes $115k a year, then $20k a year isn't unreasonable at all.

I still can't believe that you seem to think that everyone who has low income made a decision to take that crappy job. No on wants to work at McDonalds. Some people have to work at McDonalds, or they will starve. Do you understand? When I was in college, I HAD to take a job landscaping for minimun wage because I would have had to drop out of school and screw up the rest of my life to work for more.
Quote:
Originally Posted by stevo
But if there's a mandated minimum wage that has to be "livable" and that wage is equal to $30,000/yr our consultant can no longer afford to hire and pay for an office assistant. So this assistant still doesn't have a job and this consultant doesn't have an office assistant. Too bad the gov't decided what he had to pay.
Who said livable? It's just a matter of trying to even out incomes. I'm not suggesting a $30k a year minimum wage. I'm suggesting a maximum wage.
Quote:
Originally Posted by stevo
Or how about the restaurant owner who pockets $60,000 a year. Employs a staff of 30. The managers make $11/hr, cooks make $8-10, while the busboys, dishwashers, and wait staff all make minimum wage (bus boys and wait staff get tips).
Sounds fair to me.
Quote:
Originally Posted by stevo
But you, and other people in favor of increasing the minimum wage don't think he should be paying his employees what he does. according to you, not one of his employees is making enough. So after the law is passed he goes out of business because he can't afford to operate his restaurant with any less staff, but he can't afford $750,000 annual payroll expenses either. So he closes his doors.
I think minimum and maximum wage should exist. I think that companies should have the common sense to do it themselves, instead of making everyone complain to the government. In a eprfect world, people would be paid fairly for their work. While I know we don't live in that perfect world, it would be a damned shame to give up on it compeltly.
Quote:
Originally Posted by stevo
I could go on and on. Not all businesses are like the one you described. Like I said before. Its real easy to talk about a livable minimum wage, especially when you forget about the average business owner.
Livable minimum wage isn't what I'm talking about. I'm talking about two things: raiseing the wages of lower income workers as the business model allows, and putting a glass ceiling on income for those who make a ton of money.
Quote:
Originally Posted by stevo
Look at your local franchise gas station. Do you think the owner of the stop-n-go on the corner is living the high life? do you think he could afford tripleing his payroll expenses? Those are the people you hurt when you mandate such things.
I have a friend who owns a 7-11. He lives in a $4 million dollar home in Saratoga, where he is planning on retiring after sending his 2 kids through Stanford. He wasn't even born in the US. Do you know how much 7-11 pays for all that crappy food? Almost nothing. Their profit margins are uncanny. The same thing is true of the oil/gas industry. They are making more money now than most other industries combined.
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Old 06-23-2006, 02:07 PM   #45 (permalink)
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maybe I should buy a 7-11.
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Old 06-24-2006, 07:57 AM   #46 (permalink)
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You know what truly is pathetic?

I keep hearing CEO's and upper management put in all the time and resources and blah blah blah.... it's bullshit. What about the laborers who put in time, effort and their resources.

It has always been my belief that a company needs to pay employees a fair wage.

The reality, CEO's and upper management make far far more of a percentage and get bigger raises than the workers. It's BS.

Without the workers the company won't produce and even if they do outsource overseas eventually they will have no clientele to sell to. There are far more hourly wage earners who buy the goods than there are the CEO's.

When I ran my pizza company, I paid my workers $7.50 an hour, plus tips and mileage and that was to start. I had one employee making $11 an hour and one making $10.35 and I made a very nice living. The secret was, when I paid my employees more, they were more loyal, they worked harder, their friends and family were more loyal customers, my product was better than any of my competition and I went from $1,500 a week to the store making $10,000 a week within 3 months. (I made roughly 20% in my pocket profit within those 3 months, at first my employees made more than I did, but because of the respect, pay and a workplace that promoted fun, my sales skyrocketed and I reaped the benefits.... and yes, I spread the wealth around, paying for parties, dinners, golf outings and so on.)

Because I paid my employees more, I eventually made more. NEVER ONCE DID I HAVE TO RAISE MY PRICES.

But, also, for me the thrill was gone when I felt the challenge was gone and I gambled it away. (But that had nothing to do with what my employees made.)

Everywhere I have worked in management, I have always asked for 3 things, the ability to give raises, the ability to hire my own workers and a trust in me. And because of that every place I ever managed the workers were well paid, enjoyed their job and I made the store profitable. Every store I worked at in the Convienence or Pizza industry made more profit with higher payrolls than they did before me.

It's BS to say raising wages raises costs, if you have the right product and it is made well it will sell in volume and make up for the rise in cost. By having your employees well paid, loyal and happy, you will right there have a better product because labor is better.

Unfortunately, businesses treat the hourly employee like cattle and pay bare minimum, therefore turnover is high, people don't care and the workmanship sucks.

You need to find balance and if companies refuse to find a form of wealth distribution that works, either government needs to step in or workers need to unionize and truly fight for what is rightfully their share.
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Last edited by pan6467; 06-24-2006 at 08:08 AM..
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Old 06-24-2006, 09:37 AM   #47 (permalink)
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I predict that the agenda to destroy the "middle" class in America is too far along to reverse. In the future, many of us will find even the goods at Wal-Mart largely beyond affordibility. The minimum wage will be important to many more millions of us than it is today, as we join the new underclass. The plan is to bring us "down" to the earnings level of Mexicans, not to bring them "up" to our current level.

Make no mistake....TBTB are intent on the further lowering of our previous standard of living, and their new scheme involves the elimination of the union scale and benefits jobs of Ports of Los Angeles and Long Beach dockworkers and of the American truck drivers represented by the Teamsters Union.

If the Teamsters Union workers are inhibiting "growth" or profits, why has UPS been so successful and efficient? <a href="http://www.laborresearch.org/story2.php/211">UPS employs 230,000 Teamsters Union members.</a> Is it not in the interest of U.S. small business to have customers who are paid wages and benefits that keep them in the "middle class", have health care and retirement benefits, that guarantee that they are not "queued up" along side Wal-Mart workers who require public subsidy in the form of medical care, food stamps, and welfare payments because they cannot make a "liveable" wage?

The first step is an disinformation "Op", led by this handpicked, partisan mouthpiece, as he "poses" as a "dissenter", who is actually assigned to float a trial balloon, to condition us as to what is coming....replacement of U.S. infrastructure in order to accelerate the plan to eliminate remaining union jobs and to "integrate" the entire low wage Mexican workforce everywhere in North America. There is nothing wrong with existing west coast port facilities, or U.S. highway distribution systems....they just are not quite as profitable for TBTB as they potentially might be.....
<a href="http://mediamatters.org/items/200408060010">MMFA investigates: Who is Jerome Corsi, co-author of Swift Boat Vets attack book?</a>

Quote:
http://www.humaneventsonline.com/article.php?id=15497
Bush Administration Quietly Plans NAFTA Super Highway

by Jerome R. Corsi
Posted Jun 12, 2006

..........Once complete, the new road will allow containers from the Far East to enter the United States through the Mexican port of Lazaro Cardenas, bypassing the Longshoreman’s Union in the process. The Mexican trucks, without the involvement of the Teamsters Union, will drive on what will be the nation’s most modern highway straight into the heart of America. The Mexican trucks will cross border in FAST lanes, checked only electronically by the new “SENTRI” system. The first customs stop will be a Mexican customs office in Kansas City, their new Smart Port complex, a facility being built for Mexico at a cost of $3 million to the U.S. taxpayers in Kansas City.

As incredible as this plan may seem to some readers, the first Trans-Texas Corridor segment of the NAFTA Super Highway is ready to begin construction next year. Various U.S. government agencies, dozens of state agencies, and scores of private NGOs (non-governmental organizations) have been working behind the scenes to create the NAFTA Super Highway, despite the lack of comment on the plan by President Bush. The American public is largely asleep to this key piece of the coming “North American Union” that government planners in the new trilateral region of United States, Canada and Mexico are about to drive into reality.

Just examine the following websites to get a feel for the magnitude of NAFTA Super Highway planning that has been going on without any new congressional legislation directly authorizing the construction of the planned international corridor through the center of the country.....

.....The details of the NAFTA Super Highway are hidden in plan view. Still, Bush has not given speeches to bring the NAFTA Super Highway plans to the full attention of the American public. Missing in the move toward creating a North American Union is the robust public debate that preceded the decision to form the European Union. All this may be for calculated political reasons on the part of the Bush Administration.

A good reason Bush does not want to secure the border with Mexico may be that the administration is trying to create express lanes for Mexican trucks to bring containers with cheap Far East goods into the heart of the U.S., all without the involvement of any U.S. union workers on the docks or in the trucks.
Jerome Corsi's fake indignation in the "piece" above, is quickly endorsed by someone who can make money on this scheme:
Quote:
http://news.google.com/nwshp?hl=en&t...oll%20it%20out
A Mexico-U.S.-Canada highway? Roll it out

By ROBERT P. CADY
Published on: 06/23/06

The NAFTA superhighway is a good example of this. Building it would allow container ships to land at Mexico's new "Smart Port" at Lazaro Cardenas, travel in Mexican trucks up through the center of the United States, drop loads at designated depots and deliver containers all the way through to Canada, all under the watchful eye of a common security system.

We haven't heard about this from the administration but the plans are reportedly in place, with custom centers being built and the road ready to start in Texas next year. Perhaps it's been kept quiet until it is a fait accompli because such a plan bypasses the dockworkers' unions in the U.S ports, and the Teamsters truckers until after the offloads. It also becomes fodder for the jingoists.

The idea, however, illustrates how closely our three countries are intertwined.....

.......<b>Over time, the free market would regulate traffic and economic movement.</b> In truth, there may be more economic movement into Mexico and Canada rather than the other way around, stabilizing immigration. Money and brainpower would flow to where it can be best utilized. The free market would also create business interests in all three countries that don't exist now. Finally, the new North American Union would present a much stronger economic and political face to an increasingly more powerful Europe and Asia.

We are already seeing the results of a global economy that flows over borders. As more people of the world get to know each other through mass communication, new markets are being created and major shifts are taking place. Just as the world's corporations are merging to meet this global competition, it may be time to seriously consider a North American Union. And if it's already being planned for secretly, bring it out in the open. It's a good idea.

• Robert P. Cady is a writer and businessman living in Kennesaw.
After these greedy, "visionaries" destroy the purchasing power of the folks who formerly could have bought the "goods" that their newly built "parallel" freight handling system will distribute throughout the North American continent, where do the expect the demand side for all of this "freight", to come from? If there is a "war on terror", is it really "safer" for U.S. national security, to move the principle ports to an adjacent, third world country, and allow the "goods" to travel all the way to Kansas City in Mexican trucks before any customs inspection of the incoming trucks?

The same political party that blocked the U.S. senate vote to increase the minimum wage, last week, also brought us the "new" deficit. Both the "no vote" on the minimum wage, and the deficit increase are intended to do the same thing....distribute the most wealth to the fewest and the most powerful interests....and it's working !<a href="http://www.startribune.com/587/story/508126.html">The measure drew the support of 43 Democrats, eight Republicans and one independent. Four of those eight Republicans are seeking re-election in the fall.</a>
Quote:
http://www.publicdebt.treas.gov/opd/opdpdodt.htm
U.S. Treasury debt, as of:
06/22/2006 $8,339,777,349,882.77

09/28/2001 $5,807,463,412,200.06
How much and how quickly would the federal debt have to increase, to influence anyone to vote to replace republicans with democrats? How much longer will folks support "more of the same", as the "strategy" in the Iraq war?
How many of your neighbors will have to experience falling wages and loose their health insurance benefits, before you would vote for candidates who favor increasing the minimum wage? I guess we'll find some answers in about 4 months and 2 weeks from now.....

Last edited by host; 06-24-2006 at 09:47 AM..
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Old 06-24-2006, 09:50 AM   #48 (permalink)
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Interesting post, my friend. But I am an optimist and believe that Americans still have the American dream within them and that not all CEOs and powers that be are greedy enough to destroy the populace.

I still choose to believe that there are enough that will stand up and realize that their product won't sell until ALL workers are paid liveable wages.

It is only common sense..... the more the worker makes the more the worker can spend the more profitable your company becomes the more money you as the owner can make.

Less wages = eventual loss of disposable income, higher debt, lower credit available, fewer products bought.

Higher wages = greater disposable income, less debt, higher credit available, more product bought.

It's that plain and simple..... anyone arguing otherwise is completely and utterly greedy to the point they would destroy everything for their own selfish gains. And that is suicide.... whether they see it or not.
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Old 06-24-2006, 10:29 AM   #49 (permalink)
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There are plenty of other countries that have a rich upper class, and a poor bottom class. With very few people inbetween. In this country, you can work hard and move up. But college is getting so expensive that unless you become an engineer, lawyer, MBA, or doctor, you will have student loans for a long time.

As for the maximum wage, there are lots of people who it couldn't really be applied to fairly. Professional athletes, singers, movie stars, lotto winners, and lobbyists, some entreprenuers who can bring in millions of dollars a year, and not have any workers.

Yes, I agree that there should be a kind of profit sharing and some other benefits. Or a restructuring of companies where they are run like Whole Foods and REI. But, if the janitor at one company (Microsoft/Apple/AMD/Exxon)is making more than than the engineers and doctors, what incentive is there for people to learn and work hard?
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Old 06-24-2006, 10:34 AM   #50 (permalink)
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Quote:
Originally Posted by ASU2003
There are plenty of other countries that have a rich upper class, and a poor bottom class. With very few people inbetween. In this country, you can work hard and move up. But college is getting so expensive that unless you become an engineer, lawyer, MBA, or doctor, you will have student loans for a long time.

As for the maximum wage, there are lots of people who it couldn't really be applied to fairly. Professional athletes, singers, movie stars, lotto winners, and lobbyists, some entreprenuers who can bring in millions of dollars a year, and not have any workers.

Yes, I agree that there should be a kind of profit sharing and some other benefits. Or a restructuring of companies where they are run like Whole Foods and REI. But, if the janitor at one company (Microsoft/Apple/AMD/Exxon)is making more than than the engineers and doctors, what incentive is there for people to learn and work hard?

That's the argument everyone loves to give as to why CEO's and execs need to make 100x's more than the guy on the floor producing the goods. And the one everyone who is against any minimum wage or liveable wage uses.

It's BS. Yes you need to pay someone what their experience and skill level dictates, however, you also need to make sure that the janitor can feed his family, buy your product and can make enough to have a little nest egg, while being able to maintain paying all his bills on time.

So no wages don't even have to be close, they just need to be fair.

If you pay people more, invest in the infrastructure, train the workers and work on the health industry so that insurance is affordable to all and not bankrupting the nation, this nation can prosper again, and perhaps even better than ever.

But until that happens, this nation will continue to fall apart..... and even those so greedy they don't give a fuck about anyone or anything but themselves.... will eventually suffer. Maybe that is what it will take, but unfortunately those already at the bottom and nearing it will be in for worse.

We can change things now before they get worse. But the majority of the people need to find their voices and stop listening to the media and thinking the next great politician has the answers..... because those people will just say anything to keep their power. And part of keeping their power is keeping the average guy down and believing that politician (REP or DEM), religion or media has his best interest at heart, because in the end, those entities only have their interests and those who can afford to keep them in the lifestyles they desire at heart.
__________________
I just love people who use the excuse "I use/do this because I LOVE the feeling/joy/happiness it brings me" and expect you to be ok with that as you watch them destroy their life blindly following. My response is, "I like to put forks in an eletrical socket, just LOVE that feeling, can't ever get enough of it, so will you let me put this copper fork in that electric socket?"

Last edited by pan6467; 06-24-2006 at 10:43 AM..
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Old 06-24-2006, 10:48 AM   #51 (permalink)
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Quote:
Originally Posted by ASU2003
There are plenty of other countries that have a rich upper class, and a poor bottom class.
And those countries are mostly 3rd world countries. South America is just now starting to move away from the class seperation that has ravaged them for years. In an ideal econemy, there is a healthy distribution of incomes evenly across the populace (at least in my mind).
Quote:
Originally Posted by ASU2003
As for the maximum wage, there are lots of people who it couldn't really be applied to fairly. Professional athletes, singers, movie stars, lotto winners, and lobbyists, some entreprenuers who can bring in millions of dollars a year, and not have any workers.
Everyone has someone. The way I see it, venues employ thousands of people. If a performing artist, be they musical, sports, etc. can play at a show for 50,000 people, then there are vendors, security guards, personal assistants, etc. that are there to do their job, too. As for the recording of an album, you have the people who actually write the lyrics, the people who actually compose the instrumentals, the people who make the CDs the marketing people...I mean this is an industry of people. Lotto winners are more complicated, but a lot less common. I'd say so long as the lottory is honoring their commitment to donating money to local schools and such, then let them have theirs. Lobbyists should be gathered up and shot. Entreprenuers who make a killing but work on their own already have even distribution of profits across the whole company, as there is only one income. I see that as being rather problem free.
Quote:
Originally Posted by ASU2003
Yes, I agree that there should be a kind of profit sharing and some other benefits. Or a restructuring of companies where they are run like Whole Foods and REI. But, if the janitor at one company (Microsoft/Apple/AMD/Exxon)is making more than than the engineers and doctors, what incentive is there for people to learn and work hard?
Well when the CEO of Dunkin Doughnuts is making more than a doctor without borders, there is something wrong. The idea is to take small steps to level out and redistribute wages slightly. I'm not talking about $80k a year janitors. I'd blame unions for that one.
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Old 06-24-2006, 09:10 PM   #52 (permalink)
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This is a great thread. I did a paper a while back on minimum wage, and many of the folks here are spot-on...raising minimum wage decreases job availability, period.
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Old 06-24-2006, 11:02 PM   #53 (permalink)
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Looking at European countries where workers have fixed contracts, living wages, goods are sold at high prices, services are sold at high prices.

As far as the CEO stuff that pan mentions, if the CEO doesn't have the vision to create something so different and radical, then the worker has no work, ala Iacoca and the minivan, Eisner and the new animated princesses Little Mermaid et. al., Jobs and Mac and iPod.
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Old 06-25-2006, 01:13 AM   #54 (permalink)
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Quote:
Originally Posted by Cynthetiq
.....As far as the CEO stuff that pan mentions, if the CEO doesn't have the vision to create something so different and radical, then the worker has no work, ala Iacoca and the minivan, Eisner and the new animated princesses Little Mermaid et. al., Jobs and Mac and iPod.
The CEO is no more than a criminal, parasite who carves out obscene profits by exploiting the labor of workers who he pays the lowest possible wage...then he pulls up stakes, leaving them to live unemployed, in a local environment polluted with industrial wastes generated by his corporation. The CEO is off to the next obscure corner of the world where he can operate unfettered by environmental or labor protection regulation....where he can pay wages of 60 cents per hour, or less....
Quote:
http://www.progress.org/corpw30.htm
The Export-Import Bank: Corporate Welfare At Its Worst
by Rep. Bernie Sanders (I-VT)

....One of the most egregious forms of corporate welfare can be found at a little known federal agency called the Export-Import Bank, an institution that has a budget of about $1 billion a year and the capability of putting at risk some $15.5 billion in loan guarantees annually. At a time when the government is under-funding veterans' needs, education, health care, housing and many other vital services, over 80% of the subsidies distributed by the Export-Import Bank goes to Fortune 500 corporations. Among the companies that receive taxpayer support from the Ex-Im are Enron, Boeing, Halliburton, Mobil Oil, IBM, General Electric, AT&T, Motorola, Lucent Technologies, FedEx, General Motors, Raytheon, and United Technologies.

The great irony of Ex-Im policy is not just that taxpayer support goes to wealthy and profitable corporations that don't need it, but that in the name of "job creation" a substantial amount of federal funding goes to precisely those corporations that are eliminating hundreds of thousands of American jobs. In other words, American workers are providing funding to companies that are shutting down the plants in which they work, and are moving them to China, Mexico, Vietnam and wherever else they can find cheap labor. What a deal!

For example, General Electric has received over $2.5 billion in direct loans and loan guarantees from the Ex-Im Bank. And what was the result? From 1975-1995 GE reduced its workforce from 667,000 to 398,000, a decline of 269,000 jobs. In fact, while taking the Ex-Im Bank subsidies, GE was extremely public about it's "globalization" plans to lay off American workers and move jobs to Third World countries. Jack Welch, the longtime CEO of GE stated, "Ideally, you'd have every plant you own on a barge.".....
Quote:
http://www.industryweek.com/ReadArti...rticleID=12125
Outsourcing: Hedge The Low-Wage Wager
Manufacturers are still chasing cheap labor around the world. But they'd be well advised not to place all their outsourcing bet on it.

By John S. McClenahen

July 1, 2006 -- Low wage rates, particularly in such highly publicized places as China and India, continue to drive decisions about where U.S.-based manufacturers locate their production facilities.....

.....By one estimate, even after doubling between 2002 and 2005, the average manufacturing wage in China was only 60 U.S. cents an hour, compared with $2.46 an hour in Mexico. Ask companies what's the greatest pressure they're under and they "always tell us" cost reduction, states Robert Trent, an associate professor of management at Lehigh.

Yet, U.S. manufacturers -- large, small and in-between -- that let labor costs alone drive their production location decisions could be headed down the wrong road, perhaps even toward a dead end.....

....The theory of comparative advantage, one of the classic principles of economics, suggests somewhere there'll always be a low-cost location for manufacturing. If it's not China or India, it could be Thailand, Vietnam or Bangladesh. Eventually, it could be somewhere in Africa, ventures one analyst. Actually, it's already Vietnam, where Intel Corp. is building a $300 million semiconductor assembly and test facility in Ho Chi Minh City, notes Lehigh's Trent.

"Nike originally offshored manufacture of athletic shoes to Japan," says Ig Horstmann, a professor of business economics at the University of Toronto's Rotman School of Management. "When labor costs rose there, it moved to [South] Korea and Taiwan. When labor costs rose in Korea and Taiwan, Nike moved to China," he observes. "Being flexible and prepared to move to other regions and countries is part of the strategy for successful offshoring in industries that are largely cost driven."........

......."A good number of U.S. companies who five years ago set up operations and manufacturing in Shanghai or in Shenzhen or Guangzhou are actually contemplating moving to the interior, moving to what are called second- or third-tier cities where there's less competition for these individuals [and] where there isn't the churn that occurs because so many companies are chasing a limited number of qualified individuals,"....
Quote:
http://www.cnn.com/ALLPOLITICS/time/...p.welfare.html
Corporate welfare
A TIME investigation uncovers how hundreds of companies get on the dole--and why it costs every working American the equivalent of two weeks' pay every year
By Donald L. Barlett and James B. Steele
TIME magazine

(TIME, Nov. 9)[1998]

.....The rationale to curtail traditional welfare programs, such as Aid to Families with Dependent Children and food stamps, and to impose a lifetime limit on the amount of aid received, was compelling: the old system didn't work. It was unfair, destroyed incentive, perpetuated dependence and distorted the economy. An 18-month TIME investigation has found that the same indictment, almost to the word, applies to corporate welfare. In some ways, it represents pork-barrel legislation of the worst order. The difference, of course, is that instead of rewarding the poor, it rewards the powerful.

And it rewards them handsomely. The Federal Government alone shells out $125 billion a year in corporate welfare, this in the midst of one of the more robust economic periods in the nation's history.
Indeed, thus far in the 1990s, corporate profits have totaled $4.5 trillion--a sum equal to the cumulative paychecks of 50 million working Americans who earned less than $25,000 a year, for those eight years.

That makes the Federal Government America's biggest sugar daddy, dispensing a range of giveaways from tax abatements to price supports for sugar itself. Companies get government money to advertise their products; to help build new plants, offices and stores; and to train their workers. They sell their goods to foreign buyers that make the acquisitions with tax dollars supplied by the U.S. government; engage in foreign transactions that are insured by the government; and are excused from paying a portion of their income tax if they sell products overseas. They pocket lucrative government contracts to carry out ordinary business operations, and government grants to conduct research that will improve their profit margins. They are extended partial tax immunity if they locate in certain geographical areas, and they may write off as business expenses some of the perks enjoyed by their top executives.

The justification for much of this welfare is that the U.S. government is creating jobs. Over the past six years, Congress appropriated $5 billion to run the Export-Import Bank of the United States, which subsidizes companies that sell goods abroad. James A. Harmon, president and chairman, puts it this way: "American workers...have higher-quality, better-paying jobs, thanks to Eximbank's financing." But the numbers at the bank's five biggest beneficiaries--AT&T, Bechtel, Boeing, General Electric and McDonnell Douglas (now a part of Boeing)--tell another story. At these companies, which have accounted for about 40% of all loans, grants and long-term guarantees in this decade, overall employment has fallen 38%, as more than a third of a million jobs have disappeared......
Quote:
http://select.nytimes.com/gst/abstra...DAB0894D940448

Chasing Mexico's Dream Into Squalor
New York Times, The (NY)
February 11, 2001
Author: GINGER THOMPSON
Estimated printed pages: 11
Abstract: Special report The Dividing Line: Misery on the Border describes hardship, squalor and poverty afflicting Mexicans living near United States border, Mexicans who are part of tidal wave of workers lured to border by increased trade between United States and Mexico; in last five years, more than one million Mexicans have moved to border; many come not to cross border, but to work in thousands of mostly foreign-owned manufacturing plants, known as maquiladoras; scene in shantytowns such as Ciudad Juarez described; photos; map (L)

Often looking as if he had slept in his clothes, Salvador Durón does not cut the most distinguished figure. But even with his gray stubble and grease-stained fingers, he is welcomed like a king into the shantytowns at the edge of this teeming city on the border with the United States.

Mr. Durón is the water man.
Maneuvering his 15-ton tanker up jagged mesas and down narrow ravines, he delivers water to people the city cannot afford to supply. He is an everyday hero to those who live in the cardboard shacks beneath the broiling border sun.

To the local government, he is a crucial part of the struggle to absorb the tidal wave of workers drawn here each week by increased trade between the United States and Mexico. In the last five years more than one million Mexicans have moved to the border. Many come not to cross the border but to work in thousands of mostly foreign-owned manufacturing plants, known as maquiladoras.

The factories sprouted in the mid-1960's, when Mexico and the United States began an industrialization program along their border to ease chronic unemployment in Mexico. Then with the North American Free Trade Agreement came even more jobs, more shantytowns -- and more demand for Mr. Durón.

Most days, he feels as if he cannot keep up. Parking his truck atop a ridge that a year ago was the end of his route, Mr. Durón pointed to hundreds of new shacks reaching out toward the horizon. A mother and three small children emerged from one of the hovels and waved desperately for him to bring water their way.

"The city keeps getting bigger and bigger," he said. "There's no way to get water to everyone who needs it."

Ciudad Juárez, whose people he tries to supply, is only one dot in a rash of overflowing cities and towns from Tijuana to Matamoros. Hundreds of the world's wealthiest companies -- Alcoa, Delphi Automotive Systems, General Electric and others -- have set up manufacturing plants south of the border, drawn by lucrative tax breaks and cheap labor. While factories pay nearly triple the Mexican minimum wage -- about $4 a day -- workers here make in a day less than their American counterparts earn in an hour.

The explosion has created one of the most dynamic industrial zones in the Americas -- and all of the problems associated with explosive growth. The overwhelmed Mexican border cities lack the means to provide the most basic services. One of the country's powerful drug cartels holds sway here in Juárez and drug-related crime is common. Dozens of women who have come to work in the maquiladoras have been abducted, tortured, raped and murdered, their bodies tossed like garbage in the desert.

All along the border, the land, the water and the air are thick with industrial and human waste. The National Water Commission reports that the towns and cities, strapped for funds, can adequately treat less than 35 percent of the sewage generated daily. About 12 percent of the people living on the border have no reliable access to clean water. Nearly a third live in homes that are not connected to sewage systems. Only about half the streets are paved.

Mirror images of these communities dot parts of the Texas side of the line. Last year the third world conditions became an issue in the presidential race between Al Gore and George W. Bush. Democrats accused the Texas governor of ignoring 400,000 people who live in more than 1,400 unincorporated encampments, or colonias. Mr. Bush lashed back, saying that he and his supporters had done more to bring water, sewage and sanitation services to people than any previous administration.

The new Mexican president, Vicente Fox, has pledged to pump more money into the border region and to lure more workers to Mexico's south. A range of border issues are likely to be raised on Feb. 16 when President Bush visits Mr. Fox's ranch. One of the most pressing crises, officials on both sides agree, is water.

Mexican officials worry that American proposals to send more water to California from the Colorado River could create even more severe water shortages for farms on the Mexican side of the border.

Ciudad Juárez, which grows by about 50,000 people a year, is running out of water. The underground aquifer the city relies on has declined by about five feet a year. At that rate, officials estimate, there will be no usable water left in 20 years. Levels in many of the city's wells are so low that they have collapsed.

"The reality of Juárez is the reality of the whole border," said Gustavo Elizondo, the mayor of Juárez. "You have a city that produces great wealth, but that sits in the eye of a storm. In one way it is a place of opportunity for the international community. But we have no way to provide water, sewage and sanitation for all the people who come to work.

"Every year we get poorer and poorer," he added, "even though we create more and more wealth."..


....Tens of thousands of workers who come to the border each year cling to the same hope. They spend their days working at some of the most advanced factories in the country, churning out products for dozens of Fortune 500 companies.

And at night, often with only the mildest complaints, they live in squalor. According to a national survey, more than half of the families in Tijuana live below the poverty line, and only 5 percent of all families are able to meet their basic needs without difficulty.

Some of the workers' hideous settlements are in the shadow of the modern factories. Less than a few miles away from a maquiladora park that towers over the east side of Juárez, children attend classes in old school buses that feel like ovens under the desert sun. The community was connected to the city water system last year but residents still had no plumbing. City officials say that a school will be completed sometime this year.

On the west side of Juárez, in a workers' settlement called Anapra that was established almost 20 years ago, residents still do not have running water and indoor plumbing. They wait for the water man.....

......All Those Jobs Can Be Deceptive

With 1.3 million residents, Ciudad Juárez stands like Goliath next to its American neighbor, El Paso, which has a population of a little more than 700,000. Set on the Rio Grande at the point where Mexico touches Texas and New Mexico, Juárez is a metropolis racked by drug-related crime. And the increased presence of the United States Border Patrol often makes the bridges that connect the two cities feel like hostile militarized zones.

Juárez is also an economic powerhouse, the seventh largest city in Mexico with one of the strongest local economies. There are nearly 300 maquiladoras here. Mayor Elizondo said that last year an average of two new plants opened each month, generating 40,000 new jobs. The term maquiladora comes from the Mexican colonial term maquila, which was the fee millers charged to grind corn into meal. The modern version allowed manufacturers to import raw materials duty free, process them into fully or partially assembled goods and ship them back to the United States.

As Juárez helps drive an economic boom in northern Mexico, El Paso lags as an emblem of the persistent poverty that has dogged American cities across the divide. El Paso has lost more than 10,000 manufacturing jobs since Nafta took effect on Jan. 1, 1994. Some were lost when several apparel factories closed because of declining profits, said Thomas M. Fullerton, a border scholar at the University of Texas at El Paso. Others were relocated to Mexico, he said.

Professor Fullerton said that per capita income in El Paso, about $17,000, is only 60 percent of the average income in the United States. And, he said, the 9 percent unemployment rate is about twice the average unemployment rate in Texas.

It is a similar story in most of the major twin cities that straddle the border. Six of the 15 poorest metropolitan areas in the United States -- El Paso, McAllen, Laredo, Brownsville, all in Texas, as well as Las Cruces, N.M., and Yuma, Ariz. -- are on the border with Mexico.

"They are regions that have been poor for decades," said James T. Peach, an economist at New Mexico State University. "The expectations were that Nafta would change all of that due to increased trade opportunities. That turned out to be a false hope."

Juárez's robust economic indicators are deceiving, said Mayor Elizondo, who considers his city more of a poor country cousin to El Paso.

In 1999, he said, Juárez generated $1.4 billion in direct federal taxes, but its $120 million budget last year was about a quarter of El Paso's operating budget. And Juárez's population is almost twice that of El Paso. In fact, according to city officials, Juárez's budget last year was only slightly larger than the budget for the El Paso Police Department.

Like other mayors of Mexican border cities, Juárez's mayor complained that his city did not get a fair share of the wealth it generated. The mayors are urging President Fox to pursue fiscal reforms so that they will get more money for the infrastructure demands of their growing populations. And quietly, they are discussing ways to get maquiladora operators to cover the costs of roads, water and sewage treatment.

Humberto Inzunza, former president of a maquiladora owners' association, said that last year maquiladora revenues were about $16 billion. The companies, he said, paid an estimated $400 million in corporate income taxes to Mexico, an amount equal to about 2.5 percent of their revenues. They paid another $1.3 billion in social security taxes last year, for some 1.3 million workers. The factories did not have to pay duty on the raw materials they brought into Mexico, nor on the finished products they shipped back to the United States.

That has slowly begun to change, said John Christman, an economic consultant in Mexico City at Maquiladora Industries Service of Ciemex-Wefa. Under a Nafta provision that took effect last month, maquiladora operators are required to pay taxes on machines and equipment that they import for their Mexican plants. And, he said, companies that use raw materials from non-Nafta nations would be charged duties when they export their products back to the United States.

Many of the maquiladoras make annual "contributions" to their local governments to help pay for important projects. In Juárez, maquiladora operators contribute an average of $15 per employee, almost $1.5 million a year.

"It's better than nothing, but really what they give is a minuscule part of all the money they are able to make by having their factories in Mexico," Mr. Elizondo said. "What the maquilas provide to Mexico are jobs. And that is good. It is very good. But it is not enough."

Maquiladora managers disagree. Michael Hissam, the spokesman for Delphi Automotive Systems in Mexico, said the company, the world's largest auto parts maker, operates about 18 plants in Juárez alone and dozens of other plants from Querétaro to Matamoros. Last year, he said, the company paid $37 million in income and payroll taxes. And in Juárez, Delphi gave a $300,000 contribution to the local maquiladora association for infrastructure improvements.

All of the company's plants have full medical facilities, recycling programs and rigorous safety programs, Mr. Hissam said. And many of the plants provide transportation for their workers. Four years ago Delphi began a cooperative program with the Mexican government, and a private home building company to help assembly-line workers with at least one year of seniority buy homes. The program, Mr. Hissam said, has not only helped the company lower turnover rates -- which can exceed more than 100 percent a year -- it also allowed Delphi to assist almost 3,000 of its 18,000 workers in Juárez move into decent homes.

The dwellings are typically 1,000-square-feet units with one to two bedrooms.

"We feel we have been paying our fair share for a long time," Mr. Hissam said. Referring to Juárez, he added, "This is our city, too, and we want to do for our city the best we can."
Mixed Results, Unmet Promises

Experts estimate that it will take nearly $20 billion to meet the infrastructure needs of the border population. Under intense pressure from environmental groups, the United States and Mexican governments agreed to provide a small chunk of those funds through a development bank that was established in a side accord to Nafta. The North American Development Bank was set up to lend to local border agencies for water-related projects, including treatment plants and sewer systems.

Without doubt, the bank projects have made a difference. Earlier this year, Juárez opened its first waste water treatment plant to help decontaminate 75 million gallons of sewage dumped daily into the Rio Grande. In Reynosa, the bank is helping finance a sewage system, because most of the old one had worn away, leaving muddy veins instead of pipes. And it helped pay for workshops for Mexican utility managers, whose overburdened agencies often use outdated systems and have no reliable ways to deliver services nor to collect fees from consumers.

In all, the agency, which is jointly financed by the Mexican and United States governments, has provided about $277 million for 32 projects along the border over the last four years. But it had promised much more. The goal was to make almost $3 billion in loans to pay for water projects on the border. But so far, it has operated more like a philanthropic organization than a bank. Less than 5 percent of the bank's loan money has been used.

Suzanne Gallagher, the director of project administration at the bank, said that many municipal agencies along the border are not able to obtain the kinds of loans they need to fix their enormous infrastructure problems. So most of the bank's participation in projects has come in the form of grants from the United States Environmental Protection Agency.

Leaders of environmental groups who had warily supported Nafta because they believed in the promises of the bank have been disappointed.

"The challenges are still there," said Jake Caldwell, a policy specialist at the National Wildlife Federation. "The results have been mixed.".....
Mexico does not have to concern itself with the disruption caused by the rush of foreign factory owners to it's exploit the cheap labor of it's youthful workforce. The factories have moved on to cheaper labor markets, leaving the newly unemployed to live in the industrial waste that is left behind.

In the following article, it seems that it was not enough for the local gas utility to reap the savings of hiring only a part time, lower compensated workforce to staff it's call center.....the point of all of this, folks, is that no amount of concessions or cooperation with today's employers will be enough to encourage them to provide fair pay and benefits, obey labor and environmental laws, or to show any allegiance to employees, community or country. They will do nothing voluntarily that does not directly, quickly, and obviously benefit their own economic interests. Only populist legislative intiatives, backed by the threat of legal and economic penalties, and the threat of force to encourage compliance will slow the shift back to the pre-1930's employment environment that most Americans are swiftly and dramatically headed toward working in..... Government support for the right of labor to organize and bargain, along with legislation that protected workers and limited shift lengths and mandated overtime pay.....backed by strict enforcement, is the solution now, as it was 75 years ago. In the future, the only domestic jobs will be those that cannot be relocated or outsourced outside of the U.S., and it is in our interest to influence them to be well paying, if only because employers have no choice but to hire workers who live here, to do them. We already know from experience that no amount of wage and benefit concessions will stabalize or restore the numbers of jobs transferred out of the country. Populist activism will build on reaction to economic perceptions. High gasoline prices are a good start, and declining wages will push lobbyists aside and replace their influence with the political pressure of the sheer numbers of the newly and recently economically disaffected!
Quote:
http://www.tmcnet.com/usubmit/2006/06/03/1668127.htm
[June 03, 2006]

Atlanta Gas Light to outsource call center to Bangalore, India

(Atlanta Journal-Constitution, The (KRT) Via Thomson Dialog NewsEdge) Jun. 3--Next year, when Atlanta Gas Light customers call the company to argue about the "DDDC factor" or any other of a host of mystery acronyms that show up on their gas bill, the answer will come in a foreign accent.....

....The move will cost about 140 jobs in Georgia, although most of the call center jobs have been handled by temporary workers who turn over quickly in any case, spokeswoman Martha Monfried said.

She said AGL made most temporary workers permanent, in anticipation of the India move, to give them better severance benefits next year.

The outsourcing will allow AGL to pay less for full-time employees to handle calls and cut down on turnover, Monfried said.......
Cynthetiq, in the face of a recent history of CEOs such as GE's Jack Welch, who was regarded in the business community, as "America's most admired CEO", after he took every penny of U.S. taxpayer money he could con from the U.S. government, layed off nearly half of GE's U.S. manufacturing workforce, required all GE suppliers to move their manufacturing from the U.S. to Mexico, resisted all demands to conduct operations anywhere in an environmentally responsible and accountable manner, and authored the "factory on a barge", concept of harvesting the cheapest labor in the world with the least environmental and worker welfare regulation, I see no justification for your comments.

The CEOs of the worlds largest companies have left nothing but poverty, pollution, unemployed workers and ripped-off taxpayers in every locale that they have since abandoned in pursuit of still lower labor cost and less regulated manufacturing "opportunities".

You seem to advocate kissing their asses in the hope that they will provide some of us a few fleeting "crumbs", even as they loot our national treasury, lobby against the interests of the rest of us, and pollute the few prisitine places that their factories have not already contaminated. Can't an equally persuasive case be made for reacting to them the way Italian partisans did to Mussolini and his mistress?

Last edited by host; 06-25-2006 at 01:42 AM..
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Old 06-25-2006, 01:29 AM   #55 (permalink)
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Quote:
Originally Posted by host
The CEO is no more than a criminal, parasite who carves out obscene profits by exploiting the labor of workers who he pays the lowest possible wage...then he pulls up stakes, leaving them to live unemployed, in a local environment polluted with industrial wastes generated by his corporation. The CEO is off to the next obscure corner of the world where he can operate unfettered by environmental or labor protection regulation....where he can pay wages of 60 cents per hour, or less....

Cynthetiq, in the face of a recent history of CEOs such as GE's Jack Welch, who was regarded in the business community, as "America's most admired CEO", after he took every penny of U.S. taxpayer money he could con from the U.S. government, layed off nearly half of GE's U.S. manufacturing workforce, required all GE suppliers to move their manufacturing from the U.S. to Mexico, resisted all demands to conduct operations anywhere in an environmentally responsible and accountable manner, and authored the "factory on a barge", concept of harvesting the cheapest labor in the world with the least environmental and worker welfare regulation, I see no justification for your comments.

The CEOs of the worlds largest companies have left nothing but poverty, pollution, unemployed workers and ripped-off taxpayers in every locale that they have since abandoned in pursuit of still lower labor cost and less regulated manufacturing "opportunities".

You seem to advocate kissing their asses in the hope that they will provide some of us a few fleeting "crumbs", even as they loot our national treasury, lobby against the interests of the rest of us, and pollute the few prisitine places that their factories have not already contaminated. Can't an equally persuasive case be made for reacting to them the way Italian partisans did to Mussolini and his mistress?
I'm sorry but CEOs don't make decisions in a vacuum. They bring their ideas to the Board of Directors and the shareholders. The BoD votes before things that affect the stock price happen, such as moving operations overseas, launching huge new initiatives like a new product like iPod or minivan.

Keep in mind that shareholders demand profits. They demand to get better returns than last year. Like a baseball manager that doesn't keep winning the world series, BoDs like to oust their CEOs when profits plateau or worse fall.

Yes, the top dogs of CEOs have left the fields of the world ravaged, Bill Gates, Paul Allen, Ted Turner, Sumner Redstone...
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Old 06-25-2006, 01:42 AM   #56 (permalink)
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Quote:
Originally Posted by Gatorade Frost
I certainly enjoy all the sarcasm in this thread.

Anyway - I've come to the conclusion that there should be a minimum wage, and that it should be adjusted annually to the cost of living.
What is your cost of living?

Is mine higher or lower?



Imagine wages as a ladder and each wage, in whatever increment you chose, is on the ladder. You are free to choose any wage on the ladder. You may not be able to reach the top wages until you climb up the rungs below. So the minimum wage is already on the ladder...it's zero.

Also I ran across this looking at
and discussing it with a co-worker in the past
http://www.nber.org/papers/w10656
Quote:
Exposure to minimum wages at young ages may lead to longer-run effects. Among the possible adverse longer-run effects are decreased labor market experience and accumulation of tenure, lower current labor supply because of lower wages, and diminished training and skill acquisition. Beneficial longer-run effects could arise if minimum wages increase skill acquisition, or if short-term wage increases are long-lasting. We estimate the longer-run effects of minimum wages by using information on the minimum wage history that workers have faced since potentially entering the labor market. The evidence indicates that even as individuals reach their late 20's, they work less and earn less the longer they were exposed to a higher minimum wage, especially as a teenager. The adverse longer-run effects of facing high minimum wages as a teenager are stronger for blacks. From a policy perspective, these longer-run effects of minimum wages are likely more significant than the contemporaneous effects of minimum wages on youths that are the focus of most research and policy debate.
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Old 06-25-2006, 01:55 AM   #57 (permalink)
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Quote:
Originally Posted by Cynthetiq
I'm sorry but CEOs don't make decisions in a vacuum. They bring their ideas to the Board of Directors and the shareholders. The BoD votes before things that affect the stock price happen, such as moving operations overseas, launching huge new initiatives like a new product like iPod or minivan.

Keep in mind that shareholders demand profits. They demand to get better returns than last year. Like a baseball manager that doesn't keep winning the world series, BoDs like to oust their CEOs when profits plateau or worse fall.

Yes, the top dogs of CEOs have left the fields of the world ravaged, Bill Gates, Paul Allen, Ted Turner, Sumner Redstone...
There are CEOs who genuinely work smart and still have a conscience and the ability to empahtize. They achieve, by most measures, superior results:
Quote:
http://www.businessweek.com/magazine...8084_mz021.htm
APRIL 12, 2004
SOCIAL ISSUES/Commentary

The Costco Way
Higher wages mean higher profits. But try telling Wall Street

....The market's view of Costco speaks volumes about the so-called Wal-Martization of the U.S. economy. True, the Bentonville (Ark.) retailer has taken a public-relations pounding recently for paying poverty-level wages and shouldering health insurance for fewer than half of its 1.2 million U.S. workers. Still, it remains the darling of the Street, which, like Wal-Mart and many other companies, believes that shareholders are best served if employers do all they can to hold down costs, including the cost of labor.

Surprisingly, however, Costco's high-wage approach actually beats Wal-Mart at its own game on many measures. BusinessWeek ran through the numbers from each company to compare Costco and Sam's Club, the Wal-Mart warehouse unit that competes directly with Costco. We found that by compensating employees generously to motivate and retain good workers, one-fifth of whom are unionized, Costco gets lower turnover and higher productivity. Combined with a smart business strategy that sells a mix of higher-margin products to more affluent customers, Costco actually keeps its labor costs lower than Wal-Mart's as a percentage of sales, and its 68,000 hourly workers in the U.S. sell more per square foot. Put another way, the 102,000 Sam's employees in the U.S. generated some $35 billion in sales last year, while Costco did $34 billion with one-third fewer employees.

Bottom line: Costco pulled in $13,647 in U.S. operating profit per hourly employee last year, vs. $11,039 at Sam's. Over the past five years, Costco's operating income grew at an average of 10.1% annually, slightly besting Sam's 9.8%. Most of Wall Street doesn't see the broader picture, though, and only focuses on the up-front savings Costco would gain if it paid workers less. But a few analysts concede that Costco suffers from the Street's bias toward the low-wage model. "Costco deserves a little more credit than it has been getting lately, [since] it's one of the most productive companies in the industry," says Citigroup/Smith Barney retail analyst Deborah Weinswig. Wal-Mart spokeswoman Mona Williams says that Sam's pays competitively with Costco when all factors are considered, such as promotion opportunities.

PASSING THE BUCK. The larger question here is which model of competition will predominate in the U.S. Costco isn't alone; some companies, even ones like New Balance Athletic Shoe Inc. that face cheap imports from China, have been able to compete by finding ways to lift productivity instead of cutting pay. But most executives find it easier to go the Wal-Mart route, even if shareholders fare just as well either way over the long run.

Yet the cheap-labor model turns out to be costly in many ways. It can fuel poverty and related social ills and dump costs on other companies and taxpayers, who indirectly pick up the health-care tab for all the workers not insured by their parsimonious employers. What's more, the low-wage approach cuts into consumer spending and, potentially, economic growth. "You can't have every company adopt a Wal-Mart strategy. It isn't sustainable," says Rutgers University management professor Eileen Appelbaum, who in 2003 edited a vast study by 38 academics that found employers taking the high road in dozens of industries.

Given Costco's performance, the question for Wall Street shouldn't be why Costco isn't more like Wal-Mart. Rather, why can't Wal-Mart deliver high shareholder returns and high living standards for its workforce? Says Costco CEO James D. Sinegal: "Paying your employees well is not only the right thing to do but it makes for good business."

Look at how Costco pulls it off. Although Sam's $11.52 hourly average wage for full-timers tops the $9.64 earned by a typical Wal-Mart worker, it's still nearly 40% less than Costco's $15.97. Costco also shells out thousands more a year for workers' health and retirement and includes more of them in its health care, 401(k), and profit-sharing plans. "They take a very pro-employee attitude," says Rome Aloise, chief Costco negotiator for the Teamsters, which represents 14,000 Costco workers.

In return for all this generosity, Costco gets one of the most productive and loyal workforces in all of retailing. Only 6% of employees leave after the first year, compared with 21% at Sam's. That saves tons, since Wal-Mart says it costs $2,500 per worker just to test, interview, and train a new hire. Costco's motivated employees also sell more: $795 of sales per square foot, vs. only $516 at Sam's and $411 at BJ's Wholesale Club Inc. (BJ ), its other primary club rival. "Employees are willing to do whatever it takes to get the job done," says Julie Molina, a 17-year Costco worker in South San Francisco, Calif., who makes $17.82 an hour, plus bonuses.

MANAGEMENT SAVVY. Costco's productive workforce more than offsets the higher expense. Its labor and overhead tab, also called its selling, general, and administrative costs (SG&A), total just 9.8% of revenue. While Wal-Mart declines to break out Sam's SG&A, it's likely higher than Costco's but lower than Wal-Mart's 17%. At Target (TGT ), it's 24%. "Paying higher wages translates into more efficiency," says Costco Chief Financial Officer Richard Galanti.

Of course, it's by no means as simple as that sounds, and management has to hustle to make the high-wage strategy work. It's constantly looking for ways to repackage goods into bulk items, which reduces labor, speeds up Costco's just-in-time inventory and distribution system, and boosts sales per square foot. Costco is also savvier than Sam's and BJ's about catering to small shop owners and more affluent customers, who are more likely to buy in bulk and purchase higher-margin goods. Neither rival has been able to match Costco's innovative packaging or merchandising mix, either. Costco was the first wholesale club to offer fresh meat, pharmacies, and photo labs.

Wal-Mart defenders often focus on the undeniable benefits its low prices bring consumers, while ignoring the damage it does to U.S. wages. Costco shows that with enough smarts, companies can help consumers and workers alike.
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Old 06-25-2006, 02:43 AM   #58 (permalink)
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Originally Posted by host
There are CEOs who genuinely work smart and still have a conscience and the ability to empahtize. They achieve, by most measures, superior results:
which is exactly what I'm submitting, like any group there are a bad apples but it does not mean that the whole bunch needs to be tossed out, you've just proved that with the businessweek article, yet the previous ones, you were willing to throw out the baby with the bathwater.
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Old 06-25-2006, 09:41 AM   #59 (permalink)
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So many quotes, so little time.
Quote:
Originally Posted by filtherton
He's saying that paying employees a livable wage precludes obscene CEO pay.
And you're implying that all employees work for major corporations--small businesses, Mom-and-Pops don't have employees?

Quote:
Originally Posted by willravel
I suggest a maximum wage so as to prevent the seperation of incomes.
We've already seen how well such a concept works with the alternative minimum tax. Within a few years, everyone's income will be the maximum that our leaders allow (except for theirs). Their income will be exempt, much as Congress is exempt from Social Security. You know, "Some animals are more equal than others."

Quote:
Originally Posted by kutulu
I see two solutions to the problem, pay the people at the bottom more or tax the people who refuse to give them enough to live on more. If you have a magical solution that incorporates reality into it, I'd love to see it.
If you have a solution that will prevent the entire world from buying products made in countries with lower labor costs than ours, I'd love to see THAT. Otherwise, as you said, it's GIVING away money unsubstainably, if you can call it "giving" at the point of a government gun.

Quote:
Originally Posted by willravel
Stevo, have you ever worked for minumum wage?
This is just silly. Practically everyone has. Most people start at minimum when they are young, and then work to achieve a better life. A few find it easier to whine (for YEARS) that the minimum wage isn't high enough. That is, when they're not whining that there aren't any good jobs, usually because of competition from companies with a better handle on their overhead. Or because the employee couldn't be bothered to undertake some kind of training that would make them more valuable to the company.

Quote:
Originally Posted by willravel
What a fantastic point! Yes, the one and only reason for minimum wage is to make me sleep better at night. It's not like McDonalds would be paying people $3.45 an hour if they could. It's not like busniesses have to be heald responsible for the ability to give out fair wages to their employees.
That sounds suspiciously like the sarcasm that was mentioned before, with maybe a little bitterness thrown in. I will say, without a trace of sarcasm, that "It's not like employees can't switch to a job that pays better than minimum wage." Of course,that would require that the employee put forth some degree of effort, say, practicing birth control, looking for other work, being willing to relocate, taking additional training, or otherwise getting off their ass.

I defy you to show me a labor-intensive (or almost any other) business that can survive if no one will work for the pay it offers.
Quote:
Originally Posted by willravel
I still can't believe that you seem to think that everyone who has low income made a decision to take that crappy job. No on wants to work at McDonalds. Some people have to work at McDonalds, or they will starve. Do you understand? When I was in college, I HAD to take a job landscaping for minimun wage because I would have had to drop out of school and screw up the rest of my life to work for more.
So what you’re saying is that minimum wage, in your case, propped you up until you had worked hard to get something better. You DO realize that you just shot your whole argument in the foot, don’t you? It backs up everything I said above!

Here is another little aspect of owning a business--it's not minimum wage-related, but it certainly has an impact on the funds employers have available to increase pay. Now employers may be responsible if an employee decides to have a kid they can't afford.

(This is from Rush Limbaugh, and it can't be linked. Please limit your discussion to the veracity of what he said, instead of your personal opinion of him. Thanks.)

Quote:
The Massachusetts legislature plans to vote this week on a bill that would give all employees in the state 12 weeks of paid medical leave annually, 100% of their pay up to $750 a week, plus the guarantee to hold their jobs to care for newborns or sick relatives," and pretty soon, sick dogs and cats and a leaking swimming pool, what have you.

"If the bill passes, it would mandate the most generous paid leave policy in America. It's the first of 24 similar proposals pending this year. Family friendly and popular with female voters ["Pay for not working? Yeah, sounds good!"] , most of the bills are enjoying wide bipartisan support says Deborah Ness, president of the National Partnership for Women and Families. 'We're seeing real movement toward more paid leave.'"

I'm sure you are. I mean, this is, "Let's grow government." The employer pays for it. The employer's gotta pay the employees' leave up to 750 bucks a week and then keep the job open, and then, assuming the employee has work that matters, has to be replaced.
So you're paying two people while one of them isn't there, holding the job open for the one that's not there to come back. I don't know what you do with the employee that's been moved in there. It's the business that will pay for it. This is no different than what Maryland did to Wal-Mart in its own way, and it's going to spread nationwide. (interruption) Well, yeah, see, that's an interesting question, because what's going to happen, you know, businesses are not dumb, folks. In most businesses, particularly small businesses, like a Boys and Girls Clubs, they don't have a stash of cash in the back room that they're not using. . .

They don't. Now, if you're an employer, and the objective is to get fixed costs nailed down as much as you can, get the expense side, including labor, nailed so you at least know what you're dealing with in terms of what you have to earn in order to break even and show a profit, how many women of child rearing age are going to be hired? Now, it'll never be said during an interview, "You're not being hired because, why, you could get pregnant on me and you would cost me double when you're not here." That won't be said. How many women are actually going to get hired?

This stuff always has a cause and effect. This will lead to new legislation, and it'll just keep spiraling, and what you'll get is more and more government control over how businesses hire and operate and what they pay . .
Translation of the Massachusetts proposals: "Much like going out and looking for a better job, saving money in anticipation of having a child is now passe. Those rich business owners should pay for it!"

Will, since Massachusetts thinks this is "fair,” do you provide this, in order to "damn well [be] sure that [your] workers get fair compensation?" Or do YOU want to decide what's fair, instead of the government?

Quote:
Originally Posted by host
I predict that the agenda to destroy the "middle" class in America is too far along to reverse.
I would be interested to see the logic behind the government’s agenda to destroy a huge percentage of the tax base, but I am not interested in wading through pages of quotes that don’t really address the question. Now if you’d said that government officials had an agenda to control all aspects of business, while diverting huge sums of money into their control …

Quote:
Originally Posted by flstf
I guess if every business, restaurant, landscapper, etc.. had to pay their workers 30K per year then no one would have a competitive advantage over another but prices would probably go up and patrons would fall off so some would have to close. This may happen anyway with the 7.50/hr proposal. Also as wages go up some businesses will probably have trouble competing on the international market.
Thank you for slamming that nail right on the head.

Last edited by magictoy; 06-25-2006 at 09:48 AM..
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Old 06-25-2006, 08:40 PM   #60 (permalink)
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Originally Posted by magictoy
So many quotes, so little time.
Indeed.
Quote:
Originally Posted by magictoy
We've already seen how well such a concept works with the alternative minimum tax. Within a few years, everyone's income will be the maximum that our leaders allow (except for theirs). Their income will be exempt, much as Congress is exempt from Social Security. You know, "Some animals are more equal than others."
We've already seen democracies fall, so we should probably steer clear of that. MagicToy, corruption could make it's way into every facet of government, business, religion, etc. It's ever present. The way that the good people in the world work is to do everything we can to make sure the greedy corrupt people are not given power. We do not simply stop functioning as a sociey because some people are asshats. Just because some people would work to corrupt a new system doesn't meant aht it would fail.
Quote:
Originally Posted by magictoy
This is just silly. Practically everyone has. Most people start at minimum when they are young, and then work to achieve a better life. A few find it easier to whine (for YEARS) that the minimum wage isn't high enough. That is, when they're not whining that there aren't any good jobs, usually because of competition from companies with a better handle on their overhead. Or because the employee couldn't be bothered to undertake some kind of training that would make them more valuable to the company.
Practically everyone has not. Only a few of my friends at school had to take jobs in high school at all. I was a low income teenager living in a high income area. Most of my friends had brand new cars, whilc I worked my butt off selling cell phones in the mall just to afford an old Civic. Out of a graduating class of maybe 300, I was one a of a dozen or so that worked. Yes, people in minimum wage jobs can whine. I whined. I also worked my ass off for next to nothing. Guess what? I know that I had every right to whine, and so do most who make minimum wage. Who are you to condescend?
Quote:
Originally Posted by magictoy
That sounds suspiciously like the sarcasm that was mentioned before, with maybe a little bitterness thrown in. I will say, without a trace of sarcasm, that "It's not like employees can't switch to a job that pays better than minimum wage." Of course,that would require that the employee put forth some degree of effort, say, practicing birth control, looking for other work, being willing to relocate, taking additional training, or otherwise getting off their ass.
Of course it was sarcasm. I was answering in turn for a ridiculous statement. The idea that minimum wage exists simply to appease the minority who cry and cry until they get their way was clearly a troll, and I treated it as such.

I can say without an ounce of sarcasm that I, as a manager at a cell phone booth for The Mobile Solution, worked harder than my distict manager, the West Coast Market Director, and the CEO of my company combined. I know this because I was friends with all of them. Did I make more? Hell no. Perservierence may have payed off back in the 1950s for young upstarts looking to climb the corporate ladder, but I didn't make any real money until I shoveled out a crapload of money to go to a private college.
Quote:
Originally Posted by magictoy
I defy you to show me a labor-intensive (or almost any other) business that can survive if no one will work for the pay it offers.
What would that prove? We live under the current system where there are little or no alternatives. Of course people have to take the crap jobs. They don't want to starve to death. Have you ever gone more than 3 days without food? I did.
Quote:
Originally Posted by magictoy
So what you’re saying is that minimum wage, in your case, propped you up until you had worked hard to get something better. You DO realize that you just shot your whole argument in the foot, don’t you? It backs up everything I said above!
Nope. What I' m saying is that I worked hard, then I was EXTREEMLY lucky in that I was eligible for multiple scholarships. Most people don't have access to that. My jobs would not have even been able to pay for my books. The singular reason that I live in a house that I own and a car that has been payed off is one thing: scholarships.

I need you to understand something. For some people it doesn't matter how hard you work, study and try. Some people are doomed to live in poverty for the rest of their lives. We, as members of the same society as these people, have a responsibility to them. If you were starving on the street, I would buy you food.
Quote:
Originally Posted by magictoy
Here is another little aspect of owning a business--it's not minimum wage-related, but it certainly has an impact on the funds employers have available to increase pay. Now employers may be responsible if an employee decides to have a kid they can't afford.
'Another little aspect"? Weren't you just lecturing me on sarcasm?


Also, under your screen name and join date, doesn't your location say: "with my parents"? Dude, I really hope you're kidding.

Edit: I enjoyed your Ruch Limnough article, but do you have a link to the story anywhere else?
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Old 06-25-2006, 09:20 PM   #61 (permalink)
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Originally Posted by magictoy
And you're implying that all employees work for major corporations--small businesses, Mom-and-Pops don't have employees?
Nope. Just that many CEOs are by and large incredibly overcompensated.
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Old 06-25-2006, 09:37 PM   #62 (permalink)
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Originally Posted by filtherton
Nope. Just that many CEOs are by and large incredibly overcompensated.
True. I don't understand why people would buy stock in a company that overpays its executives.

However, your use of "many" and "by and large" doesn't indicate that you're backing off much from the broad brush that you originally painted everyone with. Small businesses have to abide by the minimum wage every bit as much as large corporations.
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Old 06-25-2006, 09:42 PM   #63 (permalink)
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Originally Posted by magictoy
True. I don't understand why people would buy stock in a company that overpays its executives.

However, your use of "many" and "by and large" doesn't indicate that you're backing off much from the broad brush that you originally painted everyone with. Small businesses have to abide by the minimum wage every bit as much as large corporations.
Can i just say right now that none of the small businesses that i have worked for have ever paid minimum wage? They all paid more by at least a buck or two. Now can we please back off this broad brush generalization that raising the minimum wage will hurt small businesses?


edit: I did work at a restaurant that paid me minimum wage, but it wasn't like they couldn't afford to pay me more. The owner was a cheapskate cokehead.
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Old 06-25-2006, 10:23 PM   #64 (permalink)
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Quote:
Originally Posted by willravel
We've already seen democracies fall, so we should probably steer clear of that. MagicToy, corruption could make it's way into every facet of government, business, religion, etc. It's ever present. The way that the good people in the world work is to do everything we can to make sure the greedy corrupt people are not given power. We do not simply stop functioning as a sociey because some people are asshats. Just because some people would work to corrupt a new system doesn't meant aht it would fail.
I'm still going to go with the lessons of history regarding your concept.

Quote:
Practically everyone has not. Only a few of my friends at school had to take jobs in high school at all. I was a low income teenager living in a high income area. Most of my friends had brand new cars, whilc I worked my butt off selling cell phones in the mall just to afford an old Civic. Out of a graduating class of maybe 300, I was one a of a dozen or so that worked. Yes, people in minimum wage jobs can whine. I whined. I also worked my ass off for next to nothing. Guess what? I know that I had every right to whine, and so do most who make minimum wage. Who are you to condescend?
Someone who came from a similar background. Someone who realizes that you don't improve the situation by tearing down the successful people, but by helping the ones who are willing to improve themselves. Someone who has seen a yearly influx of Canadians into my area, because these Canadians have a maximum income allowed by their government. I am forced to assume that their employees get an unpaid vacation for months every year, when their boss reaches the limit of what his business is allowed to earn.

Oh, and by the way, I am not condescending to you; in fact, I admire people with a history like the one you provided. Especially if they were, unlike you, surrounded by people who received the government dole. "Free" money from the government seems to be the biggest spirit/ambition killer of all.

I DON'T admire the people who blame everyone else for their own lack of initiative. On the other hand, I find your opinion that so many are incapable of helping themselves, well, condescending. You did it; why are so many others inferior to you?

Quote:
I can say without an ounce of sarcasm that I, as a manager at a cell phone booth for The Mobile Solution, worked harder than my distict manager, the West Coast Market Director, and the CEO of my company combined. I know this because I was friends with all of them. Did I make more? Hell no. Perservierence may have payed off back in the 1950s for young upstarts looking to climb the corporate ladder, but I didn't make any real money until I shoveled out a crapload of money to go to a private college.
So do you recommend doing what you did, or would things have worked out better if you had just sat back and asked for another 50 cents per hour? Did the Marketing Director and CEO work "smarter" than you did? Did they spend years doing your job in order to learn the business?


Quote:
What would that prove? We live under the current system where there are little or no alternatives. Of course people have to take the crap jobs. They don't want to starve to death. Have you ever gone more than 3 days without food? I did.
So have I. Well, technically, I had a jar of peanut butter. No sympathy points for you here.

Let's take your concept a little further. Next time you walk into a McDonald's, or some other "crap" job, take a look at the manager. Do they look like a rich college kid, or like someone who learned the business from the bottom for a few years, and then got promoted? I'd be willing to bet they make more than minimum wage, too. Of course, it's much easier to ask the government for more money than to pay dues like the manager did.

Quote:
Nope. What I' m saying is that I worked hard, then I was EXTREEMLY lucky in that I was eligible for multiple scholarships. Most people don't have access to that. My jobs would not have even been able to pay for my books. The singular reason that I live in a house that I own and a car that has been payed off is one thing: scholarships.
Sounds like you didn't check out the military. Or grants. Or student loans. Or a great many other ways to pay for college, many of them provided by taxes and donations from greedy people.

Quote:
I need you to understand something. For some people it doesn't matter how hard you work, study and try. Some people are doomed to live in poverty for the rest of their lives. We, as members of the same society as these people, have a responsibility to them. If you were starving on the street, I would buy you food.
That's where we differ. I believe if you work, study, and try, you will not remain in a minimum wage job. And if you were starving on the street, I'd try to get you a job. Buying food is a very short-term solution, even if it makes the buyer feel good and superior for a few days.

Quote:
Also, under your screen name and join date, doesn't your location say: "with my parents"? Dude, I really hope you're kidding.
For the most part. "With" is a relative term. So is "location." Maybe I should have said "My parents are with me."

Quote:
Edit: I enjoyed your Ruch Limnough article, but do you have a link to the story anywhere else?
Maybe this will help. It has a link to the original article in Time.

http://www.rushlimbaugh.com/home/dai..._so.guest.html

Quote:
Originally Posted by filtherton
Can i just say right now that none of the small businesses that i have worked for have ever paid minimum wage? They all paid more by at least a buck or two. Now can we please back off this broad brush generalization that raising the minimum wage will hurt small businesses?
Well, since it's true, no. When a US small business competes with a conglomerate, or with a foreign company with lower labor costs, I don't see how anyone could think an increase in the minimum wage wouldn't harm the US company.

Last edited by magictoy; 06-25-2006 at 10:46 PM.. Reason: Automerged Doublepost
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Old 06-26-2006, 12:24 AM   #65 (permalink)
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Originally Posted by magictoy
Well, since it's true, no. When a US small business competes with a conglomerate, or with a foreign company with lower labor costs, I don't see how anyone could think an increase in the minimum wage wouldn't harm the US company.
What you're claiming is true in specific situations, but not across the board. Small businesses are only at a disadvantage if they're already paying minimum wage. In my experience this is rarely the case. What about if a mom and pop is competing against wal-mart:

-the mom and pop pays better than minimum wage
-wal-mart pays minimum wage
-minimum wage goes up
-wal-mart raises wages and makes concurrent adjustments
-the mom and pop doesn't have to do anything

At the vast majority of mom and pop places i've worked, a hike in the minimum wage wouldn't have affected the money they paid their employees at all. They already paid more than the minimum wage. They wouldn't have had to raise their compensation levels at all.

As far as competition with foreign companies, well, assuming a business pays minimum wage(otherwise a minimum wage increase is irrelevant), it only matters if that business is in direct competition with a foreign business, and even then, there are a great deal more factors that come into play than minimum wage.

I'm not sure how many small business actually compete with foreign business. Do you actually have any data on how many small business compete with foreign businesses? I would assume the number as a percentage of the total number of small businesses would be rather small.

I will concede that in certain situations some businesses will be possibly put at some kind of significant disadvantage by an increase in the minimum wage. I really doubt that the number of businesses put in a real bind would be that big and until you offer up some data to counter that assumption you're just blowing smoke.

It could also be argued that a considerable number of business suffer huge disadvantages from the existence of safety regulations, yet i somehow suspect you don't favor their abolishment. Fortunately for us, the rugged american entrepreneur seems to be really good at overcoming adversity, no matter how much of a wet blanket you might make him/her out to be.
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Old 06-26-2006, 01:05 AM   #66 (permalink)
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..........Let's take your concept a little further. Next time you walk into a McDonald's, or some other "crap" job, take a look at the manager. Do they look like a rich college kid, or like someone who learned the business from the bottom for a few years, and then got promoted? I'd be willing to bet they make more than minimum wage, too. Of course, it's much easier to ask the government for more money than to pay dues like the manager did.........
How do your strong, though mostly unreferenced opinions, square with the impact of the federal government failure to stop the formation, inside U.S. borders, of a parallel work force of say....<a href="http://pewhispanic.org/">11 million trespassers</a> who <a href="http://www.cis.org/articles/2004/workerpanel042904.html">undercut</a> the wage and benefit "levels" that you seem to want to be determined solely by supply and demand?

How do your views square with an executive branch committed to pro-management objectives, at the expense of 70 years of National Labor Relations Board (NLRB) rulings that formerly protected the rights of workers to organize into unions and bargain collectively for wages and benefits?
Quote:
http://www.eurekareporter.com/Articl...rticleID=12415
Labor board ruling could have implications for union members
6/23/2006

The California Nurses Association and AFL-CIO are keeping watchful eyes on the National Labor Relations Board, which is expected to hand down a ruling in the next few weeks that could have massive implications for unions.......

........The five-member National Labor Relations Board, appointed by President George W. Bush, could by its ruling broaden the definition of “supervisors” to encompass more positions, effectively diminishing the number of employees eligible to unionize.

Under the National Labor Relations Act, supervisors are barred from joining unions and subject to disciplinary actions or dismissal for participating in union activities...........
How do your views square with a government that is now controlled by business interests?
Quote:
http://www.washingtonpost.com/wp-dyn...062101632.html
The Road to Riches Is Called K Street
Lobbying Firms Hire More, Pay More, Charge More to Influence Government

By Jeffrey H. Birnbaum
Washington Post Staff Writer
Wednesday, June 22, 2005; Page A01

To the great growth industries of America such as health care and home building add one more: influence peddling.

The number of registered lobbyists in Washington has more than doubled since 2000 to more than 34,750 while the amount that lobbyists charge their new clients has increased by as much as 100 percent. Only a few other businesses have enjoyed greater prosperity in an otherwise fitful economy.

The lobbying boom has been caused by three factors, experts say: rapid growth in government, Republican control of both the White House and Congress, and wide acceptance among corporations that they need to hire professional lobbyists to secure their share of federal benefits.....

...........Political historians don't see these as positive developments for democracy. "We've got a problem here," said Allan Cigler, a political scientist at the University of Kansas. "The growth of lobbying makes even worse than it is already the balance between those with resources and those without resources."

In the 1990s, lobbying was largely reactive. Corporations had to fend off proposals that would have restricted them or cost them money. But with pro-business officials running the executive and legislative branches, companies are also hiring well-placed lobbyists to go on the offensive and find ways to profit from the many tax breaks, loosened regulations and other government goodies that increasingly are available......

............The Republicans in charge aren't just pro-business, they are also pro-government. Federal outlays increased nearly 30 percent from 2000 to 2004, to $2.29 trillion. And despite the budget deficit, federal spending is set to increase again this year, especially in programs that are prime lobbying targets such as defense, homeland security and medical coverage.

In addition, President Bush has signed into law five major tax-cut bills over the past four years. His administration has also curtailed regulation. Over the past five years, the number of new federal regulations has declined by 5 percent, to 4,100, according to Clyde Wayne Crews Jr., a vice president of the Competitive Enterprise Institute. The number of pending regulations that would cost businesses or local governments $100 million or more a year has declined even more, by 14.5 percent to 135 over the period...........

........All-Republican lobbying firms have boosted their rates the most. Fierce, Isakowitz & Blalock and the Federalist Group report that at the end of the Clinton administration, $20,000 a month was considered high. Now, they say, retainers of $25,000 to $40,000 a month are customary for new corporate clients, depending on how much work they do.....
Quote:
http://www.washingtonpost.com/wp-dyn...004Jul1_3.html
Going Left on K Street
More Democrats Hired to Lobby Despite GOP Efforts to Shut Them Out

By Jeffrey H. Birnbaum
Washington Post Staff Writer
Friday, July 2, 2004; Page E01

....... The K Street Project, which was conceived by Republican leaders in Congress and GOP activists elsewhere, identifies loyal Republican lobbyists and campaign contributors and then encourages lawmakers to welcome them into their offices to the exclusion of others.....

....... "Everybody is very conscious of the fact that the Democratic outlook is better than it was seven or eight months ago," he added.

But proponents of the K Street Project don't see the same signs. The project "is alive and well and even spreading to the states," Norquist said.
How do the nearly unlimited resources and greedy, deceptive, nature of the wealthiest American families, exposed in an attempt to achieve legislation that solely benefits them, square with your POV? Consider that....even under current federal tax law, the wealthiest ten percent of Americans confine the rest of us to just 33 percent of the country's total wealth.....my earlier post on this page documents wealth distribution statistics that state that half of the U.S. population controls just 2-1/2 percent of the total wealth!

If you understand that politics is the business of control and distribution of power and wealth, your defense of the status quo, your failure to recognize that the wealthiest and most powerful few have marginalized the offset that a representative government in a constitutional republic is intended to afford the least wealthy, by the shear numbers of votes that they potentially exercise to influence control, to "balance" the power/wealth transfer, probably precludes chances for any meaningful discussion here.

The current uneven distribution of wealth and politcal power did not come to be where it is now, in a vacuum. Things are the way they are because too many were convinced by propaganda financed by the wealthy and powerful, to "go it alone", instead of in the way that post Hoover era Americans learned to behave politically, both at the polls and in their workplaces.

You seem to want government to suddenly take a "hands off" approach to legislating a more balanced wealth and power distribution. If your advocacy prevails, things will end badly for most of us, as they did in the 1930's, and the pendelum will swing the other way. Current federal policies yield results of half the population holding only 2-1/2 percent of the wealth, a 50 percent increase in U.S. treasury debt in less than 7 years, near total loss of the domestic manufacturing base, aggravating a trade imbalance nearing $70 billion per month, these twin deficits triggering a destruction of the purchasing power of the currency, delayed only by the printing of unprecedented new quantities of devalued fiat paper money that has fueled bubble level prices in real estate and in commodity prices.

The response to these trends by the federal executive and legislative branches was to empower energy and pharma inductry lobbyists to write "reform" legislation that benefitted only their industrys' interests and investors, as well as the politicians paid to cast yea votes for these bills, and sign them into law.
Quote:
http://www.citizen.org/pressroom/release.cfm?ID=2182
April 25, 2006

Public Citizen and United for a Fair Economy Expose Stealth Campaign of Super-Wealthy to Repeal Federal Estate Tax

Report Identifies 18 Families Behind Multimillion-Dollar Deceptive Lobbying Campaign

WASHINGTON, D.C. – The multimillion-dollar lobbying effort to repeal the federal estate tax has been aggressively led by 18 super-wealthy families, according to a report released today by Public Citizen and United for a Fair Economy at a press conference in Washington, D.C. The report details for the first time the vast money, influence and deceptive marketing techniques behind the rhetoric in the campaign to repeal the tax.

It reveals how 18 families worth a total of $185.5 billion have financed and coordinated a 10-year effort to repeal the estate tax, a move that would collectively net them a windfall of $71.6 billion.

The report profiles the families and their businesses, which include the families behind Wal-Mart, Gallo wine, Campbell’s soup, and Mars Inc., maker of M&Ms. Collectively, the list includes the first- and third-largest privately held companies in the United States, the richest family in Alabama and the world’s largest retailer.

These families have sought to keep their activities anonymous by using associations to represent them and by forming a massive coalition of business and trade associations dedicated to pushing for estate tax repeal. The report details the groups they have hidden behind – the trade associations they have used, the lobbyists they have hired, and the anti-estate tax political action committees, 527s and organizations to which they have donated heavily.

In a massive public relations campaign, the families have also misled the country by giving the mistaken impression that the estate tax affects most Americans. In particular, they have used small businesses and family farms as poster children for repeal, saying that the estate tax destroys both of these groups. But just more than one-fourth of one percent of all estates will owe any estate taxes in 2006. And the American Farm Bureau, a member of the anti-estate tax coalition, was unable when asked by The New York Times to cite a single example of a family being forced to sell its farm because of estate tax liability.

“This report exposes one of the biggest con jobs in recent history,” said Joan Claybrook, president of Public Citizen. “This long-running, secretive campaign funded by some of the country’s wealthiest families has relied on deception to bamboozle the public not only about who must pay the estate tax, but about how repealing it will affect the country.”......
magictoy, minimum wage increase legislation cannot be isolated and then denigrated because this is a myopic and a disingenuous tactic. The contention that the "self made" entrepreneur must be protected from government "infringement" that is somehow "parasitic" is a sweet piece of propaganda. Wealth and power are distributed as a result of connections and influence, that could not occur unless the voting power of the masses are undermined.

It is nearly impossible to become wealthy and powerful without manipulating the system and exploiting other people. In a politcal system, a republic with democratically elected, representative bi-cameral government.....like we in the U.S. are taught to believe that we enjoy..... where elected officials actually represented the wishes of the majority, as they respect and uphold the constitutional safeguards intended to protect the interests of the minority, do you really believe that half the population would possess only 2-1/2 percent of the wealth, or that one percent of the population would control 33 percent of the wealth, and the power and influence that accompanies it? A "real" one man, one vote, political system would never arrive at the situation we find ourselve in now, and if it did, it would not maintain itself as it seems currently to do, for any signifigant length of time.

No magictoy....we live in a "fake" politcal environment of smoke and mirrors, produced by the richest and wealthiest, not unlike the scenario described in the last quote box. Why do you insist on protecting it, or to act so certain that it is the best we can do, and should not be used to shift some wealth and some power back to the bottom half.....to 150 million people?

Are the rich so fragile....that if they were to experience a populist legislated transfer away of say.....2-1/2 points of their 66-2/3 accumulated total points....leaving them with more than 64 percent of total U.S. wealth, that their business enterprises would crumble....triggering massive unemployment?
We observe the spectacle of 150 million people who on average are just 2-1/2 wealth percentage points, collectively....away from owning nothing.

Isn't the risk of their reaction, should they wake up one day and recognize that even that little bit of wealth is ebbing away from them.....via higher prices paid for fuel and rent, of equal concern to you, than the "backlash" and consequence of the transfer of wealth away from the wealthy, that an increase of several dollars per hour in the mimumum wage would cause?

You want them to continue to believe that if they work hard enough, do without long enough, study hard long and hard enough, that they too, will "make it". Shouldn't you be equally concerned that they may learn to do the math, while their low paying job buys them less and less, and realize that they have little left to lose? Don't think it can happen here? I predict that the dollar will grow weak enough to effect a sea change in the numbers of people who offer opinions like yours, magictoy, or more importantly....like Rush's, or like that clean cut republican congressman who represents their district and ran on promises of keeping the queers from getting married and on pro-life family values, but who voted for the bankruptcy "reform" law, and against an increase in the minimum wage.....

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Old 06-26-2006, 08:00 AM   #67 (permalink)
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Quote:
Originally Posted by magictoy
Someone who came from a similar background. Someone who realizes that you don't improve the situation by tearing down the successful people, but by helping the ones who are willing to improve themselves. Someone who has seen a yearly influx of Canadians into my area, because these Canadians have a maximum income allowed by their government. I am forced to assume that their employees get an unpaid vacation for months every year, when their boss reaches the limit of what his business is allowed to earn.
What I'm proposing isn't 'tearing down successful people', it's allowing people to be super rich instead of ultra, ridiculous, insane rich. If you can't live comfortably on maybe $20 million per year, then you have a serious problem and should speak to a professional. I doubt I could even spend $20 million per year.
Quote:
Originally Posted by magictoy
Oh, and by the way, I am not condescending to you; in fact, I admire people with a history like the one you provided. Especially if they were, unlike you, surrounded by people who received the government dole. "Free" money from the government seems to be the biggest spirit/ambition killer of all.
I didn't think you were condescending to me, but I do think that anyone who reads your post who is stuck in a minimum wage job (operative word: stuck) could be pretty hurt. I did have to pay back about $45k in loans (the interest KILLS you), though.
Quote:
Originally Posted by magictoy
I DON'T admire the people who blame everyone else for their own lack of initiative. On the other hand, I find your opinion that so many are incapable of helping themselves, well, condescending. You did it; why are so many others inferior to you?
Had I not been lucky enough to have access to scolarships, I would still only be making $24,000 a year or so, which is extreemly difficult to survive on in the SF bay area. While I would be dong everything in my power to get more money and become more successful, I still could end up dirt poor. Success isn't just from self, it also relies on outside souces. Even the most successful and driven person would still be starving in certian situations. What some people don't understand is that these situations exist all over the world, not just in 3rd world countries. A friend of mine came over from France about 5 or 6 years ago and still has yet to find a comfortable living situation, and I know that he has done everything he can. He couldn't afford a state or private college, so he had to go to a JC to get his AA. he had maybe a 3.83 graduating from HS and close to that in college, but he still only makes like $10 per hour. That's not enough. He applied to the same scholarships as I did coming out of HS, but the luck of the draw (and you do have to be lucky to get scholarships) favored me, and not him for some reason. Do I see him as inferior to me? God no. I respect him a great deal. Why wouldn't I respect someone who puts fourth a great effort? Isn't the effort what one should respect instead of the reslut?
Quote:
Originally Posted by magictoy
So do you recommend doing what you did, or would things have worked out better if you had just sat back and asked for another 50 cents per hour? Did the Marketing Director and CEO work "smarter" than you did? Did they spend years doing your job in order to learn the business?
Do I reccomend doing what I did? Sure, but don't always expect the same results. A good GPA and a scholarship isn't a guerentee of financial stability or a career. Did my superiors work smarter than I did? Well that depends on what you mean by smarter. Were they willing to lie, cheat, and steal to make a buck for the company? Yep. The CEO made millions before it was discovered that he was cheating the stockholders (the CEO of The Mobile Solution was also the CEO of Worldcom). It sucks, too, because Bernard was like Santa Clause in person. Right now, he's out on bail while he tries to appeal.

Let's examine for a moment my french friend vs. Bernard. My french buddy is an honest, hard working man who deserves all the success in the world, but has been denied that. Bernard is someone who lied and cheated to make millions and doesn't deserve one dime, but he made and still has millions.

Maybe it's not fair to judge a person on his or her bank account.
Quote:
Originally Posted by magictoy
So have I. Well, technically, I had a jar of peanut butter. No sympathy points for you here.
I wasn't going for sympathy. I wasn't convinced that you understood how the people that you basically ridicule live.
Quote:
Originally Posted by magictoy
Let's take your concept a little further. Next time you walk into a McDonald's, or some other "crap" job, take a look at the manager. Do they look like a rich college kid, or like someone who learned the business from the bottom for a few years, and then got promoted? I'd be willing to bet they make more than minimum wage, too. Of course, it's much easier to ask the government for more money than to pay dues like the manager did.
Actually I tried to get a job at McDonalds before. I didn't get the job. Do you know why? I'm white as snow and I'm not related to anyone who works there. Had I been a Mexican related to one of the workers, I would have gotten the job.

Let's take your concept somewhere else. Go to your local mall and look in the cell phone kiosks (like where I used to work), look at the manager who makes minimum wage + a tiny amount for commission. Does he or she look like someone who is trying to be successful?
Quote:
Originally Posted by magictoy
Sounds like you didn't check out the military. Or grants. Or student loans. Or a great many other ways to pay for college, many of them provided by taxes and donations from greedy people.
I'm not eligible for the military because of a severe heart condition. I did have student loans (student loans arte a busniess, btw, like banking). They made quite a bit of money off me from the interest. The reason that someone might think that the rich pay for the military escapes me. They pay less taxes, they only make up a small percentage of out population.
Quote:
Originally Posted by magictoy
That's where we differ. I believe if you work, study, and try, you will not remain in a minimum wage job. And if you were starving on the street, I'd try to get you a job. Buying food is a very short-term solution, even if it makes the buyer feel good and superior for a few days.
So you believe that everyone who has a crappy job deserves it?
Quote:
Originally Posted by magictoy
For the most part. "With" is a relative term. So is "location." Maybe I should have said "My parents are with me."
Well if you work hard enough, then you can afford to buy them a house.
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Old 06-26-2006, 08:25 AM   #68 (permalink)
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The easiest way to avoid all this "if wages increase, we'll take our jobs overseas" (which btw hurts the disposable income needed to buy your product) is very simple and within Congress' means to do.

Pass a law that states if you are a company doing business in America, you will maintain the same working conditions, wages and income taxes.

If countries (i.e. China) don't like then they sell their goods elsewhere. If companies don't like it, then ask yourself why.

We have that power, and it would increase the wages and the standard of living everywhere, it would increase tax revenue, and best of all, selfishly speaking, it would keep jobs in the USA.

There comes a point when one has to ask why someone who works hard for 40 hours a week cannot afford to live a decent life.

That is what the GOP refuses to acknowledge. I see people I work with, I see even LadySage and myself with 2 incomes, barely making it. With house payments, food, gas, utilities, and so on..... our lifestyle and those of people I see who work at least 40 hour weeks are nowhere near our parents lifestyles.

Now forgive me, but isn't the great thing about our country the fact that each generation did better than the previous one? That we advanced and strove to do better?

So why all of a sudden do the GOP and these people who propagate how great life is here, want to keep wages down to the barest minimum, while CEO's make more and more every year?

The worker works just as hard as the CEO. The worker who works 40 hours a week deserves to live a comfortable life and be able to pay his/her bills, be able to have a disposable income that will buy products without having to use credit cards and go further into debt.
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Old 06-27-2006, 10:23 AM   #69 (permalink)
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I have come to the conclusion that the rights whole argument is......

IT IS OPINION ONLY.... AS A MAJOR PART OF POLITICS IS BASED ON OPINION........


If the hourly common man, who puts in 40 hours a week demands a decent wage, where he can pay bills, take a decent 2 week vacation and have a lifestyle similar to his parents without having debt pile up... that man isn't worth it and this is all a class envy/class warfare/ class hatred issue and that guy who works 40 hours best shut the Hell up our we'll ship his job overseas....

Meanwhile, CEO's, upper management and executives, can demand whatever they want as far as wages and the GOP Neo con advocates are all for that....
The man works so hard and puts so much into the business and it's based on his vision and blah blah blah

One question......

WHO MAKES THE VISION POSSIBLE????????

Hmmmmmm maybe the person working their ass off designing, producing, warehousing, distributing and selling it..... the common man.

I have ture issues with ANYONE who feels that someone working 40 or more hours a week and doesn't make a decent respectable wage, is lazy, ignorant, has a job that doesn't deserve more, etc. etc.

Anyone working 40 or more hours a week should be able to live somewhat comfortably and not be borderline poverty.

He has as much right to live a decent and prosperous life as any CEO or nicely paid executive is "ENTITLED" to make their millions.
__________________
I just love people who use the excuse "I use/do this because I LOVE the feeling/joy/happiness it brings me" and expect you to be ok with that as you watch them destroy their life blindly following. My response is, "I like to put forks in an eletrical socket, just LOVE that feeling, can't ever get enough of it, so will you let me put this copper fork in that electric socket?"

Last edited by pan6467; 06-27-2006 at 10:38 AM..
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Old 06-29-2006, 03:30 PM   #70 (permalink)
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Quote:
Originally Posted by Ample
Here is a thought, lets raise minimum wage and reduce the amount of money that we give our CEOs. Did you know that the average CEO makes over a hundred times more than the average worker?
The figure I heard was 300 times.

Quote:
Originally Posted by Rodney

Personally, I think of the minimum wage as the "16-year-olds and illegal immigrant wage." Few others will work for $5.15, but these two groups are desperate for work. Personally, I think the minimum wage is kept artificially low to allow employers to exploit these two groups.
To quote Chris Rock....

"Do you know what minimum wage means?

It means, if I could pay you less, I would, but I can't, cause that's the law"

No truer words have ever been spoken.

Quote:
Originally Posted by Charlatan
All I can say is that there would be a race to the bottom in trying to figure out just how little companies could pay their low wage employees...


PS: Moved to Politics
An excellent way of putting it.

Although I am not a huge fan of unions, I understand their place in sticking up for worker's rights. I have no doubt in my mind whatsoever, that if unions were to disappear, it would be 1920 all over again in about 2 years for the majority of people.

I can just hear all the corporate double speak right now, "we have to think globally", "we need to increase efficiency" (translated to mean, you have to work more for less), "we have to be more competative" (translated to mean, we want to pay you less), blah blah blah.

Quote:
Originally Posted by stevo
The reality is there has always been poverty and there always will be. the minimum wage will not fix it. moving the minimum wage up from $5.15 to $7.50 won't do a thing to fight poverty. because $15,000 a year is not a "livable wage" If you want to dictate that people get paid a livable wage they need at least ten grand more than that. and closer to $30k+ with a family. so you can have the government dictate what business should pay or you can have the government redistribute wealth to the poor.
True, there will always be poverty, but minimum wage isn't about eliminating poverty, it's about preventing EXTREME poverty. Minimum wage does prevent that.

Last edited by james t kirk; 06-29-2006 at 03:47 PM.. Reason: Automerged Doublepost
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Old 06-29-2006, 08:40 PM   #71 (permalink)
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Quote:
Originally Posted by james t kirk
True, there will always be poverty, but minimum wage isn't about eliminating poverty, it's about preventing EXTREME poverty. Minimum wage does prevent that.

Well, actually it doesn't. A guy earning minimum wage makes less than $11,000 per year gross. I dunno about you but if I were making that little I'd be struggling like hell just to eat and keep the lights on.
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Old 06-30-2006, 03:16 AM   #72 (permalink)
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Quote:
Originally Posted by pan6467
I have come to the conclusion that the rights whole argument is......

IT IS OPINION ONLY.... AS A MAJOR PART OF POLITICS IS BASED ON OPINION........


If the hourly common man, who puts in 40 hours a week demands a decent wage, where he can pay bills, take a decent 2 week vacation and have a lifestyle similar to his parents without having debt pile up... that man isn't worth it and this is all a class envy/class warfare/ class hatred issue and that guy who works 40 hours best shut the Hell up our we'll ship his job overseas....

Meanwhile, CEO's, upper management and executives, can demand whatever they want as far as wages and the GOP Neo con advocates are all for that....
The man works so hard and puts so much into the business and it's based on his vision and blah blah blah

One question......

WHO MAKES THE VISION POSSIBLE????????

Hmmmmmm maybe the person working their ass off designing, producing, warehousing, distributing and selling it..... the common man.

I have ture issues with ANYONE who feels that someone working 40 or more hours a week and doesn't make a decent respectable wage, is lazy, ignorant, has a job that doesn't deserve more, etc. etc.

Anyone working 40 or more hours a week should be able to live somewhat comfortably and not be borderline poverty.

He has as much right to live a decent and prosperous life as any CEO or nicely paid executive is "ENTITLED" to make their millions.
So unskilled laborers with little to no education that work 40 hours should make equitable salaries to what you make? Should someone with little to no experience make the same wages that someone with 20 years does? Then why do countries with abject lines of rich and poor have such rigorous education and more educated graduates that move to more prosperous nations than countries with social welfare?
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Old 06-30-2006, 06:00 AM   #73 (permalink)
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Quote:
Originally Posted by Cynthetiq
So unskilled laborers with little to no education that work 40 hours should make equitable salaries to what you make? Should someone with little to no experience make the same wages that someone with 20 years does? Then why do countries with abject lines of rich and poor have such rigorous education and more educated graduates that move to more prosperous nations than countries with social welfare?
Did you even truly read my post?

How did you get equitable to liveable from my post. I never suggested paying the same, just enough to live ......... so please do not put words into my mouth or try to make my argument look like something it isn't.

So we should have poor people who work their asses off for 40 hours and be paid wages that are just above or below poverty level.

So someone who is unskilled but works his ass off for 40+ hours a week SHOULD struggle and barely make it??????

Yet the CEO who pays everyone to make him look good can make 100's of x's what that poor schlob makes.

Oh and by the way...... are you saying because someone didn't graduate high school or college they are not worth wages that would give them a decent life?

And this isn't another country, this is the USofA supposedly the greatest country ever, yet we can't get corporations to pay people enough to live decent lives.

You don't want to raise wages ....... fine then the guy making $10/hour or and works 40 hours a week doesn't have to have income taxes. CEO's can have that burden added onto theirs.

I know plenty of people WITH college degrees that have been at jobs for years and are making only $10/hour..... because the job started at $7.50 and you get a 25 cent raise a year..... if you are lucky... some years no raises.

I know people who have been laid off by companies here that were making over $30,000/yr only to find that any job that is hiring is hiring at most $6.75 with no benefits.

You tell people to work hard and that they can live a decent life......... then you argue that if they haven't reached certain levels of education, no matter how hard they work they don't deserve to make enough to live and have some pride and feel like men?

You'd rather have them barely make enough to live and watch CEO's make so much they don't know what to do with it....... but because they are who they are.... they obviously know where the money needs to go far more than the guy who has to decide whether his family can eat this week or have the electric shut off.
__________________
I just love people who use the excuse "I use/do this because I LOVE the feeling/joy/happiness it brings me" and expect you to be ok with that as you watch them destroy their life blindly following. My response is, "I like to put forks in an eletrical socket, just LOVE that feeling, can't ever get enough of it, so will you let me put this copper fork in that electric socket?"
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Old 06-30-2006, 07:30 AM   #74 (permalink)
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Quote:
Originally Posted by pan6467
Did you even truly read my post?

How did you get equitable to liveable from my post. I never suggested paying the same, just enough to live ......... so please do not put words into my mouth or try to make my argument look like something it isn't.

So we should have poor people who work their asses off for 40 hours and be paid wages that are just above or below poverty level.

So someone who is unskilled but works his ass off for 40+ hours a week SHOULD struggle and barely make it??????

Yet the CEO who pays everyone to make him look good can make 100's of x's what that poor schlob makes.

Oh and by the way...... are you saying because someone didn't graduate high school or college they are not worth wages that would give them a decent life?

And this isn't another country, this is the USofA supposedly the greatest country ever, yet we can't get corporations to pay people enough to live decent lives.

You don't want to raise wages ....... fine then the guy making $10/hour or and works 40 hours a week doesn't have to have income taxes. CEO's can have that burden added onto theirs.

I know plenty of people WITH college degrees that have been at jobs for years and are making only $10/hour..... because the job started at $7.50 and you get a 25 cent raise a year..... if you are lucky... some years no raises.

I know people who have been laid off by companies here that were making over $30,000/yr only to find that any job that is hiring is hiring at most $6.75 with no benefits.

You tell people to work hard and that they can live a decent life......... then you argue that if they haven't reached certain levels of education, no matter how hard they work they don't deserve to make enough to live and have some pride and feel like men?

You'd rather have them barely make enough to live and watch CEO's make so much they don't know what to do with it....... but because they are who they are.... they obviously know where the money needs to go far more than the guy who has to decide whether his family can eat this week or have the electric shut off.
No, I´m suggesting that people have something to STRIVE for. I know and understand the position you are taking. It is dear to me in ways you do not know and could not know.

I worked in NYC and lived in NJ in 1991. I made $4.35 working a small mom and pop garment factory working from 7am to 7am from Monday to Saturday. I got home every day around 8pm in a township that had blue laws so everything but grocery stores were closed on Sunday. In order to buy any work related clothing I had to travel to the next county or go into New York City.

When I first started working for this company I worked only 40 hours and asked for a raise, they suggested I wanted a raise and they said they had more hours to work available. Eventually they gave me a raise to $8/hr after I took on the duties of another gentleman that went on vacation and did both jobs, mine normal one and this new one. So my total hours increased even more since the original job I got hired to do I had to now do late at night.

I was sick or on vacation I did not get paid. If I had a doctors appointment I clocked out and did not get paid for those hours. There were many times I clocked out on Wednesday evening I had already worked 40 hours.

One day I got fed up with the whole thing and went to a career counselor. They tested me and had a potential job for me. Within 24 hours I had secured a new job doubling my total income. It was a corporate job, I stayed there until I closed the company after it was divested. I jumped from company to company until I landed where I am now. I have been with this corporation for 10 years now.

It took me a number of years NOT staying in the security of a particular job but taking risks that I did not want to but had to in order to better my lot. I know according to career counselors that I am underpaid since I have not yet gone above $100,000. But let me tell you, I am happy where I am. I have no stress. I get 3 weeks vacation a year, 2 weeks of sick days, summer fridays where from Labor day to Memorial day I get every other Friday off. I can take off early to go to doctor´s appointments. I get a good number of other perks, like a pension plan, bonus based on profit sharing, 401k matching. Many many other perks that I cannot even begin to list.

The moral here is that I could have stayed where I was like many other people at that garment company. I know many people still working there who have worked there for 25 years. I have surpassed many of them in income, but in happiness I could not say, because some of them equate security of the same place as something important to them.

I don´t have a college degree, I barely graduated from High School having to retake a science in summer school because I failed physics.

I believe that I wanted to have a better life, one better than what was just handed and given to me. I worked very hard for where I am, and will continue to do so. I resent anyone who isn´t willing to exert some effort to improve their lot in life and expect someone else to just divy it up for them.

I was laid off from my wonderful corporation, they gave me a severance package for 9 months. Looking for jobs there were few and far between, I ended up taking a pay cut that I know most people in poverty would never achieve. But I retrained and retooled my skills to make myself more desireable and marketable. I was eventually rehired back to the company because my skills fit the long term goals of the company something I prepared and worked hard for.

The mom and pop operation could not have ever provided me such a lifestyle. I could not have ever expected it. It would have been silly for me to think so. Just like I do not think that a CEO cannot provide me that lifestyle. I created it on my own with my own resources and my own blood, sweat, and tears, and sacrifices.
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Old 06-30-2006, 08:22 AM   #75 (permalink)
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Quote:
Originally Posted by Cynthetiq
No, I´m suggesting that people have something to STRIVE for. I know and understand the position you are taking. It is dear to me in ways you do not know and could not know.

I worked in NYC and lived in NJ in 1991. I made $4.35 working a small mom and pop garment factory working from 7am to 7am from Monday to Saturday. I got home every day around 8pm in a township that had blue laws so everything but grocery stores were closed on Sunday. In order to buy any work related clothing I had to travel to the next county or go into New York City.

When I first started working for this company I worked only 40 hours and asked for a raise, they suggested I wanted a raise and they said they had more hours to work available. Eventually they gave me a raise to $8/hr after I took on the duties of another gentleman that went on vacation and did both jobs, mine normal one and this new one. So my total hours increased even more since the original job I got hired to do I had to now do late at night.

I was sick or on vacation I did not get paid. If I had a doctors appointment I clocked out and did not get paid for those hours. There were many times I clocked out on Wednesday evening I had already worked 40 hours.

One day I got fed up with the whole thing and went to a career counselor. They tested me and had a potential job for me. Within 24 hours I had secured a new job doubling my total income. It was a corporate job, I stayed there until I closed the company after it was divested. I jumped from company to company until I landed where I am now. I have been with this corporation for 10 years now.

It took me a number of years NOT staying in the security of a particular job but taking risks that I did not want to but had to in order to better my lot. I know according to career counselors that I am underpaid since I have not yet gone above $100,000. But let me tell you, I am happy where I am. I have no stress. I get 3 weeks vacation a year, 2 weeks of sick days, summer fridays where from Labor day to Memorial day I get every other Friday off. I can take off early to go to doctor´s appointments. I get a good number of other perks, like a pension plan, bonus based on profit sharing, 401k matching. Many many other perks that I cannot even begin to list.

The moral here is that I could have stayed where I was like many other people at that garment company. I know many people still working there who have worked there for 25 years. I have surpassed many of them in income, but in happiness I could not say, because some of them equate security of the same place as something important to them.

I don´t have a college degree, I barely graduated from High School having to retake a science in summer school because I failed physics.

I believe that I wanted to have a better life, one better than what was just handed and given to me. I worked very hard for where I am, and will continue to do so. I resent anyone who isn´t willing to exert some effort to improve their lot in life and expect someone else to just divy it up for them.

I was laid off from my wonderful corporation, they gave me a severance package for 9 months. Looking for jobs there were few and far between, I ended up taking a pay cut that I know most people in poverty would never achieve. But I retrained and retooled my skills to make myself more desireable and marketable. I was eventually rehired back to the company because my skills fit the long term goals of the company something I prepared and worked hard for.

The mom and pop operation could not have ever provided me such a lifestyle. I could not have ever expected it. It would have been silly for me to think so. Just like I do not think that a CEO cannot provide me that lifestyle. I created it on my own with my own resources and my own blood, sweat, and tears, and sacrifices.

That truly is commendable Cyn. But not everyone has the drive you do, so we should punish people for just being happy to have a job where they can afford to live decently?

I find the argument that "if one wants better they will strive for it" very degrading, judgemental and assuming that EVERYONE has the same oppurtunities, background etc. as the one who made it.

I don't buy that BS. Cyn you are a very intelligent man and what drives you may not drive someone else. It isn't he/she is lazy but life may have happened and he/she may have kids, made a mistake somewhere along the road (quit school, committed a crime when he was young, had a severe illness, poor credit, whatever etc.) where a decent job can't be had, and so on. Do you suggest these people get stuck in a job they cannot afford to live but cannot afford to quit either be punished with those low wages because they fucked up in their past and made a mistake and thus are not worthy to advance?

For every great moving up story like yours there are many more where the guy had a decent job, lost it and found there were no jobs out there that could pay him near the wage he made.... so he couldn't afford his car payment, mortgage, kids' college, etc.

As college tuitions skyrocket, aid decreases it is becoming harder and harder to get an education..... and then with student loans (both public and private because the gov't loans aren't enough anymore), working at a job that pays barely enough to make it is like slavery. Why? Because you are stuck there. You have bills and can't afford to quit. You are exhausted because you are salary working 50 hours (or trying to work 2 jobs because neither offers full time) in a stress filled job and sleep is unheard of, because of the stress and nightmares of work....... How do you tell someone to get out of that? How do you show someone there is a light at the end of the tunnel?

Because there are more and more like that than are like you...... people beaten down by the system. At least with better wages..... perhaps they can afford to take a few days off to look for a better job or find something better.

Maybe these scenarios are just in Ohio...... (I will say AZ had plenty of work but lousy wages)..... I don't know I can only go by what I see and what I know.... and I know people have drive or they don't.... it doesn't matter what they make, the drive is there or isn't.... but the system can wear a person down to the point they give up those dreams and the drive because the possibility to advance isn't there. For the people with no drive and happy to make a wage they can live on..... who is to say there is anything wrong with that? As long as they work 40 hours a week and are happy and make enough to live on I see no problem with that.

This whole, "Either you have a drive or you can't make a liveable wage" is BS. It an excuse to keep wages low and people living on credit, heavily indebted and it is not bettering society in anyway. If anything it is destroying society and widening ths gaps.
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Last edited by pan6467; 06-30-2006 at 08:32 AM..
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Old 06-30-2006, 08:55 AM   #76 (permalink)
 
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i had considered posting stuff to this thread before, but held off because i did not find the way the arguments were presented to be useful--but the last posts to come extent change this, so here goes....

1. i should say that i find no argument compelling against raising the minimum wage to the level of a "living wage" however that is defined. a business is a social activity--economic action is social, it is not separate, not discrete, not a wholly private sphere within which "rational actors" pursue the infantile notion of "self-interest". as a social activity, business comes with obligations to the social context within which it operates, that enables it to generate a profit (to function at all). i do not buy the ideological focus that comes from the right on small business when the fact of the matter is that theoverwhelming majority of economic activity in the states is undertaken by large-scale operations.

this last point is one where pan and cyn/stevo talk past each other. if pan uses terminologies particular to corporate action, cyn/stevo respond with terminology that links theur positions to small businesses. i wonder about this choice, where it comes from and why it is compelling. i dont see this as self-evident, and it seems to me that entire arguments here hinge on which example you choose to think about.

2. another level problem: when pan, for example, talks about a living wage (or its functional equivalent) in economic terms, cyn responds with a parable concerning motivation. these are not the same type of argument. a living wage-type argument involves questions of economic position, which involve questions like food costs, rent or mortgage levels, etc. and something on the order of a cost of living index. these are social matters.
cyn's story avoids social questions, focussing rather on what he apparently take to be the subjective motivation absurdly low wages provided him as a person--which is fine--except that he seems to assume there is something generalizable about his story--the implication is that if everyone were more like him, things would be hunky dory. that seems kind of presumptuous to me.

further, it does not constitute a statement about anything social or structural at all---there is no attempt to understand factors like poverty as social phenomena or social problems---there is no consideration of the range of possible responses to poverty---there is only a story about motivation, which reads like it is also a story about virtue, the implication of which is that folk who work very low paying jobs do so because they lack motivation--that is they lack virtue--and so, by extension, they deserve to be poor. because, in the end, poverty is their fault and can be explained by this lack of an inward characteristic of virtue.

that seems to me meaningless if you take it at all seriously as a conversation about anything to do with poverty or with low wage levels.

to head off the international comparisons---in amartya sen's book "development as freedom" you can find very interesting arguments about poverty--he uses mortality rates to pose questions about false comparisons between poverty levels in different contexts (pp. 22-23 for the data itself). one target of the information is the routine (and false) claim that folk who are poor in the us are less poor than those in other places. these claims usually rest on data concerning income levels and nothing else.

if you look at mortality rates, the story changes: as of 1995, 82% of white males could expect to live to 75 yrs; 74 % of males in china, 71% of males in kerala, india; 67% of african-american males.

what to make of this?

there is a way in which the answer is obvious--measured in terms of income to the exlcusion of other factors, the poor in the states are not as poor as those in other countries; but if you think about poverty in relation to life expectancy, you have to think differently--while income levels may be higher, poverty in america operates in a different cultural environment within which the delightful consequences of the american intertwining of class and racism crystalize....poverty in the states is more dysfunctional than poverty in very poor countries as a function of the cultural context within which it operates.

this would seem to me a pretty strong argument for not only a living wage, but also for a radical equalization of educational and other forms of cultural resources that shape opportunity, a radical reform of the health care system and so forth.

another way: arguments against a living wage seem to me ethically wrong. i see no reason to not think about poverty as a social problem, not as the result of some lack of virtue on the part of the poor. i see no justification for firms of any size paying only the lowest possible wages.

yet another way: i think milton friedman is full of shit.
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Last edited by roachboy; 06-30-2006 at 08:59 AM..
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Old 06-30-2006, 09:56 AM   #77 (permalink)
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Roach I am in awe. Very profound and well written response that truly says everything needed to be said.

This just occurred to me also..... speaking on drive and pay in another wage type thread (where this question is alo posted).......

If the CEO decides to cut jobs in the US and move production (to say) Indonesia, knowing that they cannot make widgets as good as the workers here but those workers will do so for far less thus drivng up the profit (even if sales go down)..... is that truly a CEO with drive or is that a CEO just abusing the system and showing no ingenuity or drive to truly better profit through new ideas and better product????????

So yes he drove up profits but destroyed the social fabric of a whole community.... does this man deserve millions in bonuses and pay?

He truly didn't strive to better anything..... except his own finances.

So why did he deserve to make 100's of x's more than the employees who lost their jobs because they worked their asses of 40 hours a week trying to make a living?

In truth was not this country founded on paying decent wages to labor to get loyalty and the best work possible for products built to last longer than a few years, maybe even before they are paid off?

I'm sorry but when both my grandfathers were union in the 60's and 70's the products they made were made with pride, respect, built to last and done so because they made decent livings and didn't worry about living paycheck to paycheck.

Today, you pay someone barely enough to live and put more stress on them, not only are they not healthy physically but mentally they are close to breaking.

Everything in this world needs balance and right now the gaps in classes and wages are far far out of balance.
__________________
I just love people who use the excuse "I use/do this because I LOVE the feeling/joy/happiness it brings me" and expect you to be ok with that as you watch them destroy their life blindly following. My response is, "I like to put forks in an eletrical socket, just LOVE that feeling, can't ever get enough of it, so will you let me put this copper fork in that electric socket?"

Last edited by pan6467; 06-30-2006 at 10:11 AM.. Reason: Automerged Doublepost
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Old 06-30-2006, 11:49 AM   #78 (permalink)
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Quote:
Originally Posted by pan6467
In truth was not this country founded on paying decent wages to labor to get loyalty and the best work possible for products built to last longer than a few years, maybe even before they are paid off?
Actually, this country was founded with the help of slavery, which didn't require any wages at all, and then sweatshop type laber which required very little in wages. Both of these things were supposedly necessary for the economy to function and both required significant bloodshed to be ended. As you may know, america seems to be doing fine without them. A number of american companies still take advantage of sweatshop labor, just not american sweatshop labor.
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Old 06-30-2006, 09:02 PM   #79 (permalink)
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Quote:
Originally Posted by filtherton
Actually, this country was founded with the help of slavery, which didn't require any wages at all, and then sweatshop type laber which required very little in wages. Both of these things were supposedly necessary for the economy to function and both required significant bloodshed to be ended. As you may know, america seems to be doing fine without them. A number of american companies still take advantage of sweatshop labor, just not american sweatshop labor.
Let me rephrase that then, to what I meant...... since the 50's has not this country been founded on decent wages and the ability to advance?
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I just love people who use the excuse "I use/do this because I LOVE the feeling/joy/happiness it brings me" and expect you to be ok with that as you watch them destroy their life blindly following. My response is, "I like to put forks in an eletrical socket, just LOVE that feeling, can't ever get enough of it, so will you let me put this copper fork in that electric socket?"
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Old 06-30-2006, 09:14 PM   #80 (permalink)
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Quote:
Originally Posted by pan6467
Let me rephrase that then, to what I meant...... since the 50's has not this country been founded on decent wages and the ability to advance?
I know what you're saying, but i think that all changed in the eighties. Profit became much more important than decency, and still is. Everytime you hear someone talk about "letting the market handle it" is a reflection of this shift. The market cares solely about making money. The market is a completely different system of morality, and if you happen to think that morals should ultimately guide people towards creating a better world to live in, a wholly inadequate system.
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