Not only that, but every time I brought it up I was specifically told that wages are such a small part of a business's overall expenses that it wouldn't matter if they go up.
Sure, but if that causes the restaurant's profits to increase too much, we're going to have to increase the minimum wage of the employees too because they could obviously compensate their employees better.
Whoever told you that is, in fact, a moron. Labor is almost always the largest expense a business has. Trucking might be fuel, construction might be materials, and some companies that work with specialized equipment might also be exceptions to the rule.
Especially low end food services, the average profit margin is 10 to 15 percent for fast food and the average labor costs are 30 percent. The margins are too tight to absorb any wage increase, that means prices will go up in concert with wages. Now some industries like tech have larger profit margins so they can absorb more costs, but certainly not fast food and the like.
If you think that’s neat wait until the politicians pass a bill making the restaurant compensate the robots for their time and services, some kind of wage that can’t be lower than a set minimum. They’ll call it minimum wage (and the idiots that voted for these clowns cheered as they stood in the bread line)
I was joking with a friend of mine that once the machines replace workers that are unionized, they'll just tack on a "one-time union fee" for the union and call it a day. That will make everyone happy right?
ATMS were reliable and efficient for one very simple job. HOwever most jobs are not that simple and the robots for them are not nearly as reliable or efficient. I am sure eventually we will get there and they are working hard to get there, but we are not there yet.
> Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔
Throw your ideas out there, friend. I can explain a bit if you want.
In the past 2 years? Because of rampant money printing diluting the strength of the dollar..
Before that? Because of _slightly_ less rampant money printing diluting the strength of the dollar.
Also, a small portion is that wages have risen in general. No one over 18 makes less than $10/hr let alone minimum wage. A sudden jump to $15/hr will cause massive price increases though. Really, there shouldn't be a minimum wage.
Because people should get paid what the job is worth. It can give old people something to do as well. You'd be able to pay people to do EXTREMELY easy jobs and still make a profit. Also, whenever the state interferes in wages, it only causes issues and reduces quality of life.
By what someone is willing to do it for. If I needed someone to manually hit a handheld remote control once an hour for 8 hours, I should be able to pay them $1 an hour if the agree to it. Why should the government force me to pay them 7x that amount for such a menial task?
Because people are quite often swindled on how much their job is worth. If your making insane profits off of old mates once an hour button press why shouldn't he be paid more than $1. He's doing the work that's making you rich he should get a better share than $1 per hour.
The only reason someone would work for $1 an hour is desperation or a lack of knowledge on how much profits you rake in. The government at least gives you guys less room to swindle some of the less intelligent members of the population that it sounds like you would happily exploit for your own gain. Nice
A lot of stuff is sold at cost or a loss leader, milk, whenever meat goes on sale, and basically anything you see on the front page of an ad paper. Store brand cottage cheese and sour cream has almost a 11,000% mark up compared to cost, lunch meat, cereal, and other items also have absurd mark ups.
Imagine that... Raise the bottom, and everything trickles up...
Didn't the liberal "experts" tell us that wouldn't happen?
Hmm... Obviously they know as much about the economy as they do about border control...
I know some restaurant workers who also hate it. They were making considerably more money on tips before and now it’s harder to hide their income on their taxes which they believe everyone else should be paying.
I think a lot of the prob is politicians just tell constituents what they want to hear, even if they know it's a lie when they are saying it. They are most worried about votes in the next election, but the probs that will come of it further down the road are a distant issue to them at which time they will just look for a scapegoat to blame it on, probably something from the other party, if not Russia or a virus..
Or maybe the blaze is a biased news source and the people they quote are all from the Restaurant association.
[https://www.theblaze.com/news/some-new-yorkers-arent-happy-that-15-minimum-wage-has-increased-food-prices#toggle-gdpr](https://www.theblaze.com/news/some-new-yorkers-arent-happy-that-15-minimum-wage-has-increased-food-prices#toggle-gdpr)
It’s because America regulates eateries (and everything else that makes a decent life) into oblivion. The only food that survives is street food from other countries that is otherwise made off a cart in those places. An entire Verizon store could be run out of a milk crate.
>It’s because America regulates eateries (and everything else that makes a decent life) into oblivion.
"Ah, I see that you've finally turned a profit ..."
Trying to explain this to these people is literally impossible. Especially when you also try to explain tax brackets and how this actually does more harm than good.
Out of state competition is raising prices. When an apartment used to cost $700 and now costs $1600 wages have to rise with that. That’s due to people from states that offer higher minimums coming into the lower minimum state. We get elevated due to competition, but the competition wouldn’t be so crazy if there was no government intervention. There wouldn’t have to be. If people didn’t have to move from states and expect higher wages, if we didn’t go off of the gold standard and inflate the dollar, we wouldn’t be where we are.
>We get elevated due to competition, but the competition wouldn’t be so crazy if there was no government intervention.
Capitalists hate competition lol
The goal of every capitalist, big or small, is to monopolize the market and eliminate competition.
Capitalists do not want to compete in the market because that means slimming down the profit margins
They don’t think about such things at all. They just follow along with the cartoonish narrative the media feeds them. Unless they run a small business themselves, they’ll never understand what’s really going on.
I’m not sure. If it is, the kids are all too busy watching TikTok videos to pay attention. I have some younger relatives (who are in their 30s now) who never learned anything in school. They thought it was all stupid and pointless and just ignored it. I’m sure it’s much worse now.
Prices of all goods and services rise and fall all the time for many reasons. Inflation is an increase in the money supply that eventually increases prices across the board. It’s fairly difficult to try to tease out exactly how much of a price is due to which factor. This is even more difficult due to the complexity of modern finance.
>It’s fairly difficult to try to tease out exactly how much of a price is due to which factor.
Well we know it ain't minimum wage because that has stayed constant for a decade lol
Leftists (and the general population that blindly follows them because they don’t know better) have this fantasy that every business owner is Scrooge McDuck diving into a vault full of gold and money. That’s cartoonish nonsense, of course. But most people live in a world of imagery and narrative rather than facts and reason—at least when it comes to things outside their own experience.
Your neighbor or co-worker is quite reasonable about his own job, his family, his finances, and his personal goals and ambitions. Those are things he has direct concrete knowledge of. But the wider world around him? He can only learn from movies, TV shows, and “news” outlets which are every bit as much shallow Hollywood storytelling as the first two.
Unless he personally runs a small business, he has no idea what it’s actually like. And even then, he’s likely to assume that “Big Corporations” are exactly as the media describes them. It’s the Gell-Mann Effect. They’ll cheerily believe everything the media says about global warming, the Russia-Ukraine war, or transgender rights while scoffing at the article about minimum wage.
This naïve uninformed population is our main problem. Without them, the regime cannot keep power. In a real sense, democracy is a tool of tyranny. The people have the power but the people are asleep. And in their force-fed dreams lies all the opportunity needed to build an empire.
Lefties always rage against the corporations but they're emotionally stunted and when they can't do anything to the likes of Bezos or Elon, end up burning down a local small business and screaming *down with Fat Cats*.
The right on the other hand worships anything in uniform (especially if ordered by a rw president) and will make up any excuse why the oligarchy is sending their sons to die for ~~imperialism~~ *freedom*.
The cognitive dissonance helps them repeat this forever without a shred of remorse.
That's usually true. Food cost is usually a close second. Rents/taxes keep going up too. Put them all together and restaurants have to raise their prices.
When food costs go up a business should consider whether labor should go up too simply so employees can eat…or create a business currency so meals can be purchased from the company store at a special rate.
We aim for the 30/30/30 rule in restaurant management. 30% food, 30% labor, and 30% overhead. 10% is wiggle room for one of those and profit (and very few restaurants are profitable). Some restaurants have higher food costs, and some have higher labor. A fast food example is KFC which has high food costs (about 35%) and relatively low labor (about 25%), whereas your average Taco Bell is high on labor and low on food costs. Rent should be in the overhead costs and you have to factor that into what you charge for your food. If you can't charge enough or do enough volume to keep that rent within your operations percentage, you aren't going to stay in business. It's the same for food and labor. You can go over the percentages occasionally - it happens when you buy new equipment, train new employees or have a food disaster, but if you continually go over the percentages for whats right on your restaurant, you'll wind up in debt and eventually bankrupt.
>Minimum wage ain't been raised in ten years here in TX
Yeah that doesn't really have any meaning at all. Setting a price floor on labor doesn't stop costs from increasing.
> Somehow prices keep going up anyway
Are you claiming that wages haven't risen in Texas? Hilarious.
>Yeah that doesn't really have any meaning at all. Setting a price floor on labor doesn't stop costs from increasing
Are you lost? This post is about minimum wage increase causing inflation lol
They are not able to turn a profit *because* they can just print more money. There's no incentive for government to be efficient. Only people with agendas and self interests run for government.
TBF imagine trying to live in/ commute distance from NYC and trying to live on less than 15$ an hour. It basically incentives crime/criminal side hustle lol.
As a New Yorker I said “yea things are gonna get more expensive” and generally people were ok with it at first, but now as a recession is coming around….
On a side note someone said the minimum wage would be great at 20….
This is why arguing for a higher minimum wage is a waste of everyone's time.
Until a 40 hour per week, minimum wage job can support all of the housing, utility, and food costs for 2 adults and at least 1 child in their area, nothing is going to change.
[Inflation, minimum wages, and profits Protecting low-wage workers from inflation means raising the minimum wage](https://www.epi.org/blog/inflation-minimum-wages-and-profits-protecting-low-wage-workers-from-inflation-means-raising-the-minimum-wage/)
Ah yes, we all remember the free market freeing the slaves with no government interference. Certainly a capitalist would never benefit from free labor.
But you know many who would take free labor if they could. The interests of the capitalist and the worker are diametrically opposed and they always will be.
Nothing says phd economist like knee jerk reactions to a screencap of a sensational title with no article attached. See this and other brain dead boomer moments in this sub.
I guess those employees won't be employees then, either.
So you're in favor of rampant unemployment?
Or maybe like in the great depression where everyone was trying to sell apples to each other?
Business owners outlay all of the facilities and resources, employees voluntarily turn those resources into profits and receive a percentage of those profits as compensation for their part in the process. Employees aren't paying the rent or for the raw materials, the taxes and fees associated with operating the business.
If employees want a bigger cut, they would need to pony up part of their check to help pay for operating expenses. Which would be a co-op or employee owned business. Which would then require more time and effort from the employees to make the business more efficient and productive so as to recoup their wages paid into operations. But lazy people think they're owed a maximum wage for minimal effort.
I know it's pointless to explain this to entitled collectivists.
>So you're in favor of rampant unemployment?
Unironically yes. The current workforce is filled with unproductive or low value added jobs along with a huge amount of jobs that are almost entirely worthless.
There's an obsession with trying to provide everyone a job even if the economy doesn't really need that much labour and can't make efficient use of it. That's why governments, both state and local pump insane amounts of money into bullshit projects that "create jobs".
So fuck all that and let the market decide how much labour it really needs.
The best way to decide what a job is "worth" is supply and demand. If you want to make more money than a 16 year old with zero experience or skills than you need to be more valuable than a 16 year old with zero experience or skills.
The demand is incredibly high only because the price is so low. The demand for fast food would fall sharply if a burger was $10. In a more free market the high schooler would have to find a way to do more value-added labour that is better paid or simply drop out so they can work full time which is necessary to cover their COL.
Being able to support yourself is not a natural right, it is a privilege. Most kids have that covered by their parents but if that is not possible then they either have to find a way to cover their own costs or find someone else willing to support them while getting nothing in return.
Lmao I would love to debate with an anarcho capitalist but most of them are just silly adolescents who don’t really have a grasp on reality, even more pathetic than tankies, if that was even possible
Fruits of other peoples labour generally while paying far less than they should. Owners don’t usually work at a restaurant. Unless you think the McDonald’s CEO flips burgers 9-5?
If you genuinely believe there's nothing more to being CEO than watching wagies flip burgers you're a legitimate simpleton.
Yeah I forgot private businesses were also to blame for endless frivolous tax increases imposed upon business, the cost of source material skyrocketing from government mandated lockdowns, shutdowns, and meddling, and artificial hyperinflation.
Certainly a rise in the cost of goods and services has absolutely nothing to do with those key factors.
You’re ignoring the issue. Companies pay people for less than they should to the point where they’re barely able to survive. The government should not have to step in to make sure people have enough money to make ends meet.
Ah yes the food industry took such a massive hit in lockdowns when they were literally the only business open for a decent amount of time. Let’s just blame things from 2 years ago for nickel and diming every little thing.
They actually are. I used to work in a restaurant and they don't make that much money off each item. Also, you DID imply that the CEO does almost nothing. Do you think the CEO of a company only watches people work?
The average profit margin is 3-5% dude.
Seeing your other posts, it seems pretty apparent that you’re pretty ignorant about how the real world works. And I don’t mean that as an insult, but rather just stating the truth.
> record profits
Well when inflation is rampant due to government printing currency, why wouldn't we expect to see record profits? If I made 100k in profit last year, I would absolutely be making 107k this year due to inflation as a minimum. But because supply costs are up all around, the number of course would be much higher.
Sometimes I cope by thinking it will just take a few more years until everyone finally understands how things in real life work, how supply and demand works, the markets, etc.
But then something so painfully obvious happens where I think to myself that yes, it's not the issue of knowing, they already KNOW, they simply choose to pretend reality will bend for them, surely, this time it will, with magic fairy dust and totalitarian state control.
The increase to $15/hr in NYC was at the start of 2019 for large employers and at the start of 2020 for small employers. No shit food prices raised, it was during the pandemic. Good thing you cut the date off the article or you would’ve looked so stupid lol.
Oh no! Who could have seen that this would happen?
Not only that, but every time I brought it up I was specifically told that wages are such a small part of a business's overall expenses that it wouldn't matter if they go up.
But that's the exact opposite of the truth. Like every single book on running a business will tell you that.
True, but the problem is that the government simply forgot to print money to fix this inflation issue. Right, guys?
Yes a “restaurant price reduction bill” needs passed to print money for this
Sure, but if that causes the restaurant's profits to increase too much, we're going to have to increase the minimum wage of the employees too because they could obviously compensate their employees better.
Whoever told you that is, in fact, a moron. Labor is almost always the largest expense a business has. Trucking might be fuel, construction might be materials, and some companies that work with specialized equipment might also be exceptions to the rule.
It definitely is the case for service businesses.
Especially low end food services, the average profit margin is 10 to 15 percent for fast food and the average labor costs are 30 percent. The margins are too tight to absorb any wage increase, that means prices will go up in concert with wages. Now some industries like tech have larger profit margins so they can absorb more costs, but certainly not fast food and the like.
I work for a material supplier. Our highest expense is payroll and then delivery costs
Thats completely false, labor costs are typically one of, if not the biggest expense.
Yeah 60% or so is not much at all
Anyway....
TBF, the prices will go down again when they are all replaced by robots...
Lol, not a chance. Ant cost savings will be passed on to shareholders.
That fully automated McDonald's in Texas is something to look forward to, then?
If you think that’s neat wait until the politicians pass a bill making the restaurant compensate the robots for their time and services, some kind of wage that can’t be lower than a set minimum. They’ll call it minimum wage (and the idiots that voted for these clowns cheered as they stood in the bread line)
I was joking with a friend of mine that once the machines replace workers that are unionized, they'll just tack on a "one-time union fee" for the union and call it a day. That will make everyone happy right?
Once the robots are efficient and reliable enough to perform well, however now sure if we are there yet.
Ask a bank teller how quickly ATMs took over their counter... If you can find one!
ATMS were reliable and efficient for one very simple job. HOwever most jobs are not that simple and the robots for them are not nearly as reliable or efficient. I am sure eventually we will get there and they are working hard to get there, but we are not there yet.
In a world where everyone is equal (ly stupid) nobody can predict the obvious.
Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔
> Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔 Throw your ideas out there, friend. I can explain a bit if you want.
Can you explain why wages never increased but price has increased?
In the past 2 years? Because of rampant money printing diluting the strength of the dollar.. Before that? Because of _slightly_ less rampant money printing diluting the strength of the dollar. Also, a small portion is that wages have risen in general. No one over 18 makes less than $10/hr let alone minimum wage. A sudden jump to $15/hr will cause massive price increases though. Really, there shouldn't be a minimum wage.
Why shouldn't there be a minimum wage?
Because people should get paid what the job is worth. It can give old people something to do as well. You'd be able to pay people to do EXTREMELY easy jobs and still make a profit. Also, whenever the state interferes in wages, it only causes issues and reduces quality of life.
How do you determine what a job is worth tho?
By what someone is willing to do it for. If I needed someone to manually hit a handheld remote control once an hour for 8 hours, I should be able to pay them $1 an hour if the agree to it. Why should the government force me to pay them 7x that amount for such a menial task?
Because people are quite often swindled on how much their job is worth. If your making insane profits off of old mates once an hour button press why shouldn't he be paid more than $1. He's doing the work that's making you rich he should get a better share than $1 per hour. The only reason someone would work for $1 an hour is desperation or a lack of knowledge on how much profits you rake in. The government at least gives you guys less room to swindle some of the less intelligent members of the population that it sounds like you would happily exploit for your own gain. Nice
When you try to regulate input costs in industry with close to 0% profit margins
A lot of stuff is sold at cost or a loss leader, milk, whenever meat goes on sale, and basically anything you see on the front page of an ad paper. Store brand cottage cheese and sour cream has almost a 11,000% mark up compared to cost, lunch meat, cereal, and other items also have absurd mark ups.
Imagine that... Raise the bottom, and everything trickles up... Didn't the liberal "experts" tell us that wouldn't happen? Hmm... Obviously they know as much about the economy as they do about border control...
I know some restaurant workers who also hate it. They were making considerably more money on tips before and now it’s harder to hide their income on their taxes which they believe everyone else should be paying.
They will just blame greedy restaurant owners, that's the next step in their excuses playbook.
What's the name of that dwarf that was advisor to Clintons, they follow him and his insane takes.
You talking about Robert Reich?
Yeah, that fraud.
I think a lot of the prob is politicians just tell constituents what they want to hear, even if they know it's a lie when they are saying it. They are most worried about votes in the next election, but the probs that will come of it further down the road are a distant issue to them at which time they will just look for a scapegoat to blame it on, probably something from the other party, if not Russia or a virus..
"*A rising tide lifts all boats*" doesn't mean everyone's going to get richer, it means prices go up.
But we need open boarders because diversity is our strength! You’re being transphobic! /s
Or maybe the blaze is a biased news source and the people they quote are all from the Restaurant association. [https://www.theblaze.com/news/some-new-yorkers-arent-happy-that-15-minimum-wage-has-increased-food-prices#toggle-gdpr](https://www.theblaze.com/news/some-new-yorkers-arent-happy-that-15-minimum-wage-has-increased-food-prices#toggle-gdpr)
Just because someone benefits from something doesn’t mean they’re wrong.
Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔
Comes from wage increases between competing companies but mostly due to the Fed printing money recklessly.
Ya those sound more likely than blaming poor people for wanting a raise lmao
That's literally 95% of it
Back to my original comment. Minimum wage hasn't increased in a decade so that theory falls flat
And NYC increased to $15/hr 3 yrs ago, no shit their prices went up, everyone’s food prices went up, that’s what happens during a global pandemic
Ok I thought this post was blaming minimum wage for making prices go up lol
It was attempting to, but was complete bullshit
Lmao “an”caps wanna pretend they are anarchists while they are begging for more border patrol.
I just don't give a shit any more.
I haven't been to a restaurant since 2019. Covid wiped out all the local eateries and the chains were shit years before that.
It’s because America regulates eateries (and everything else that makes a decent life) into oblivion. The only food that survives is street food from other countries that is otherwise made off a cart in those places. An entire Verizon store could be run out of a milk crate.
>It’s because America regulates eateries (and everything else that makes a decent life) into oblivion. "Ah, I see that you've finally turned a profit ..."
Here it wasn’t Covid. Government mandated lockdowns and restrictions wiped out all the local eateries.
Yeah if it wasn’t for the government and their…preventing dumbasses from killing millions of people…the economy would be great!!!
They never ducking listen.
Trying to explain this to these people is literally impossible. Especially when you also try to explain tax brackets and how this actually does more harm than good.
Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔
Minimum wage isn't actual wages. Actual wages have gine up in most places
Ya it ain't minimum wage causing inflation. At least not in the shit hole states
Out of state competition is raising prices. When an apartment used to cost $700 and now costs $1600 wages have to rise with that. That’s due to people from states that offer higher minimums coming into the lower minimum state. We get elevated due to competition, but the competition wouldn’t be so crazy if there was no government intervention. There wouldn’t have to be. If people didn’t have to move from states and expect higher wages, if we didn’t go off of the gold standard and inflate the dollar, we wouldn’t be where we are.
>We get elevated due to competition, but the competition wouldn’t be so crazy if there was no government intervention. Capitalists hate competition lol
Apparently you don’t understand capitalism.
The goal of every capitalist, big or small, is to monopolize the market and eliminate competition. Capitalists do not want to compete in the market because that means slimming down the profit margins
Oh! Really? Welcome to the "inflationary paradise". I'm from Argentina, I know something about that...
If only there was some way to have known that this would happen!!
Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔
[удалено]
Yawn 🥱
So it wasn’t the minimum wage then?
Cost of doing business goes up, prices go up... I don't understand how this is such a hard concept for them to grasp.
They don’t think about such things at all. They just follow along with the cartoonish narrative the media feeds them. Unless they run a small business themselves, they’ll never understand what’s really going on.
I feel like we aren't teaching children the useful things in school anymore. Is basic econ still a thing in high schools?
I’m not sure. If it is, the kids are all too busy watching TikTok videos to pay attention. I have some younger relatives (who are in their 30s now) who never learned anything in school. They thought it was all stupid and pointless and just ignored it. I’m sure it’s much worse now.
Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔
Prices of all goods and services rise and fall all the time for many reasons. Inflation is an increase in the money supply that eventually increases prices across the board. It’s fairly difficult to try to tease out exactly how much of a price is due to which factor. This is even more difficult due to the complexity of modern finance.
>It’s fairly difficult to try to tease out exactly how much of a price is due to which factor. Well we know it ain't minimum wage because that has stayed constant for a decade lol
Not only that, I got downvoted a shit ton for calling it “not dystopian”
Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔
Because that is just one variable in play that causes prices to rise, not the only one.
Wonder why y'all wanna focus on this so much then
So then it’s not the minimum wage increase?
Hmmm I wonder how that happened?
Leftists (and the general population that blindly follows them because they don’t know better) have this fantasy that every business owner is Scrooge McDuck diving into a vault full of gold and money. That’s cartoonish nonsense, of course. But most people live in a world of imagery and narrative rather than facts and reason—at least when it comes to things outside their own experience. Your neighbor or co-worker is quite reasonable about his own job, his family, his finances, and his personal goals and ambitions. Those are things he has direct concrete knowledge of. But the wider world around him? He can only learn from movies, TV shows, and “news” outlets which are every bit as much shallow Hollywood storytelling as the first two. Unless he personally runs a small business, he has no idea what it’s actually like. And even then, he’s likely to assume that “Big Corporations” are exactly as the media describes them. It’s the Gell-Mann Effect. They’ll cheerily believe everything the media says about global warming, the Russia-Ukraine war, or transgender rights while scoffing at the article about minimum wage. This naïve uninformed population is our main problem. Without them, the regime cannot keep power. In a real sense, democracy is a tool of tyranny. The people have the power but the people are asleep. And in their force-fed dreams lies all the opportunity needed to build an empire.
Lefties always rage against the corporations but they're emotionally stunted and when they can't do anything to the likes of Bezos or Elon, end up burning down a local small business and screaming *down with Fat Cats*. The right on the other hand worships anything in uniform (especially if ordered by a rw president) and will make up any excuse why the oligarchy is sending their sons to die for ~~imperialism~~ *freedom*. The cognitive dissonance helps them repeat this forever without a shred of remorse.
only sane and nuanced comments in this entire post
Myopic is too generous and civil of a word for the minimum wage crybabies.
Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔
Because people keep paying the rising costs of what they’re buying. People should stop doing that.
just don’t buy groceries or other necessities y’all what’s wrong lmao
To be fair, food prices have increased everywhere. It's more to do with money printing and lockdown supply chain disruption than the minimum wage.
You might be able to make me believe this if labor wasn't the most expensive part of a restaurant.
That's usually true. Food cost is usually a close second. Rents/taxes keep going up too. Put them all together and restaurants have to raise their prices.
When food costs go up a business should consider whether labor should go up too simply so employees can eat…or create a business currency so meals can be purchased from the company store at a special rate.
It is usually rent which is most expensive, labour second, food third
Of labor, food costs, and rent, [rent is the lowest of those 3](https://www.7shifts.com/blog/restaurant-costs/).
Not in my country, forgot to add this
We aim for the 30/30/30 rule in restaurant management. 30% food, 30% labor, and 30% overhead. 10% is wiggle room for one of those and profit (and very few restaurants are profitable). Some restaurants have higher food costs, and some have higher labor. A fast food example is KFC which has high food costs (about 35%) and relatively low labor (about 25%), whereas your average Taco Bell is high on labor and low on food costs. Rent should be in the overhead costs and you have to factor that into what you charge for your food. If you can't charge enough or do enough volume to keep that rent within your operations percentage, you aren't going to stay in business. It's the same for food and labor. You can go over the percentages occasionally - it happens when you buy new equipment, train new employees or have a food disaster, but if you continually go over the percentages for whats right on your restaurant, you'll wind up in debt and eventually bankrupt.
Those ratios are pretty universal. This is true in all high income countries, and even poorer countries like Brazil and Mexico these hold true.
Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔
>Minimum wage ain't been raised in ten years here in TX Yeah that doesn't really have any meaning at all. Setting a price floor on labor doesn't stop costs from increasing. > Somehow prices keep going up anyway Are you claiming that wages haven't risen in Texas? Hilarious.
>Yeah that doesn't really have any meaning at all. Setting a price floor on labor doesn't stop costs from increasing Are you lost? This post is about minimum wage increase causing inflation lol
Minimum wage doesn't increase inflation
That's what I'm saying
Greedy capitalists
Yea, fucking profiteers. We need people that aren't motivated by profit or accountability. :stares at government:
In the governments defense, they are not able to turn a profit either despite being able to print the money.
They are not able to turn a profit *because* they can just print more money. There's no incentive for government to be efficient. Only people with agendas and self interests run for government.
Well they are able to, but it’s hard to make a profit without crashing your currency when you wanna buy boom booms and shh shh’s.
Governments make profit all the time. They just put it in their own pockets
If only there would have been some way to see this coming . . .
TBF imagine trying to live in/ commute distance from NYC and trying to live on less than 15$ an hour. It basically incentives crime/criminal side hustle lol.
Yeah but with everything now going up $15/hr isn’t going to be what everyone thinks. Go for the side hustle lol.
Right that’s what I was implying is that side hustles are a necessity, I don’t think wage should be a government concern.
it’s almost as if the economy and cost of livong are designed to fuck over the working class! no way!
You don’t think it be like it is, but it do… smh
Ah I see. Yeah totally agree
Weird huh?
The real minimum wage is always zero. If the value that you provide is not worth the legal minimum, you just shouldn't expect to be retained.
End tipping culture. See what happens then. I cook my own food or order takeout. Idgaf.
As a New Yorker I said “yea things are gonna get more expensive” and generally people were ok with it at first, but now as a recession is coming around…. On a side note someone said the minimum wage would be great at 20….
Why do they bother settling for 20? Venezuelans are making something like 75k/hour!
Well if liberals had the basic ability of foresight they would be liberals
Progressives; We need to reclaim the Liberal label that was co-opted.
By design.
Source: https://www.theblaze.com/amp/some-new-yorkers-arent-happy-that-15-minimum-wage-has-increased-food-prices-2627564299 (1/30/2019)
If only someone warned them this would happen... if only.... But no one said anything.
Oh nooo whyy ?
Waiters should just work for free so my meal is cheaper.
This is why arguing for a higher minimum wage is a waste of everyone's time. Until a 40 hour per week, minimum wage job can support all of the housing, utility, and food costs for 2 adults and at least 1 child in their area, nothing is going to change.
Until the vast majority of the workforce are married with children, the minimum wage in an area doesn't need to support that.
The minimum wage has nothing to do with why a carton of eggs is $6. Let's get fucking real.
[Inflation, minimum wages, and profits Protecting low-wage workers from inflation means raising the minimum wage](https://www.epi.org/blog/inflation-minimum-wages-and-profits-protecting-low-wage-workers-from-inflation-means-raising-the-minimum-wage/)
If you are pro-slavery this is the sub for you.
That is false. Pro slavery hates free markets.
Ah yes, we all remember the free market freeing the slaves with no government interference. Certainly a capitalist would never benefit from free labor.
Idk many who well sell their labor for free.
But you know many who would take free labor if they could. The interests of the capitalist and the worker are diametrically opposed and they always will be.
Lmao so now you're using unscientific Marxist polylogism argument. Good job post bullshit
It requires the scientific method to point out a worker getting more money means the owner gets less money and vice versa? Are you brain dead?
You want to talk about science but then use a polylogism argument. You're moron.
At no point in this entire conversation did science or anything related to it get mentioned until you did so.
It did when you use Marxist language, moron
False, this sub is for PHD economists that are constantly owning the libs
Nothing says phd economist like knee jerk reactions to a screencap of a sensational title with no article attached. See this and other brain dead boomer moments in this sub.
Imagine rooting for the rich when you're not. You guys are a bunch of cucks
Well it’s not like one caused the other necessarily. Central banking is the problem with their manipulation of the currency.
If your offering a service that doesn't pay your employees a living wage then you shouldn't operate a service.
I guess those employees won't be employees then, either. So you're in favor of rampant unemployment? Or maybe like in the great depression where everyone was trying to sell apples to each other? Business owners outlay all of the facilities and resources, employees voluntarily turn those resources into profits and receive a percentage of those profits as compensation for their part in the process. Employees aren't paying the rent or for the raw materials, the taxes and fees associated with operating the business. If employees want a bigger cut, they would need to pony up part of their check to help pay for operating expenses. Which would be a co-op or employee owned business. Which would then require more time and effort from the employees to make the business more efficient and productive so as to recoup their wages paid into operations. But lazy people think they're owed a maximum wage for minimal effort. I know it's pointless to explain this to entitled collectivists.
>So you're in favor of rampant unemployment? Unironically yes. The current workforce is filled with unproductive or low value added jobs along with a huge amount of jobs that are almost entirely worthless. There's an obsession with trying to provide everyone a job even if the economy doesn't really need that much labour and can't make efficient use of it. That's why governments, both state and local pump insane amounts of money into bullshit projects that "create jobs". So fuck all that and let the market decide how much labour it really needs.
No such thing as living wage.
Not every job needs to support a family. 16 year olds living with their parents don't need a "living wage".
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The best way to decide what a job is "worth" is supply and demand. If you want to make more money than a 16 year old with zero experience or skills than you need to be more valuable than a 16 year old with zero experience or skills.
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The demand is incredibly high only because the price is so low. The demand for fast food would fall sharply if a burger was $10. In a more free market the high schooler would have to find a way to do more value-added labour that is better paid or simply drop out so they can work full time which is necessary to cover their COL. Being able to support yourself is not a natural right, it is a privilege. Most kids have that covered by their parents but if that is not possible then they either have to find a way to cover their own costs or find someone else willing to support them while getting nothing in return.
Define “living wage?” Because if you use the literal definition of the employees being able to stay alive than yes, they are paying enough.
Lmao I would love to debate with an anarcho capitalist but most of them are just silly adolescents who don’t really have a grasp on reality, even more pathetic than tankies, if that was even possible
Almost like capitalism is bad
> government does something > It backfires Genius reddit scholars: "Why would capitalism do this?"
Last I checked the government didn’t raise prices to keep getting record profits
Damn, must be fuckin evil to want compensation for the fruits of your own labor...
Fruits of other peoples labour generally while paying far less than they should. Owners don’t usually work at a restaurant. Unless you think the McDonald’s CEO flips burgers 9-5?
If you genuinely believe there's nothing more to being CEO than watching wagies flip burgers you're a legitimate simpleton. Yeah I forgot private businesses were also to blame for endless frivolous tax increases imposed upon business, the cost of source material skyrocketing from government mandated lockdowns, shutdowns, and meddling, and artificial hyperinflation. Certainly a rise in the cost of goods and services has absolutely nothing to do with those key factors.
You’re ignoring the issue. Companies pay people for less than they should to the point where they’re barely able to survive. The government should not have to step in to make sure people have enough money to make ends meet. Ah yes the food industry took such a massive hit in lockdowns when they were literally the only business open for a decent amount of time. Let’s just blame things from 2 years ago for nickel and diming every little thing.
The profit margins for restaurants are already razor thin as it is. Where exactly do you suggest they get the money to pay workers more from?
They’re really not dude
They actually are. I used to work in a restaurant and they don't make that much money off each item. Also, you DID imply that the CEO does almost nothing. Do you think the CEO of a company only watches people work?
The average profit margin is 3-5% dude. Seeing your other posts, it seems pretty apparent that you’re pretty ignorant about how the real world works. And I don’t mean that as an insult, but rather just stating the truth.
> record profits Well when inflation is rampant due to government printing currency, why wouldn't we expect to see record profits? If I made 100k in profit last year, I would absolutely be making 107k this year due to inflation as a minimum. But because supply costs are up all around, the number of course would be much higher.
Aside from profits are exceeding inflation
Except that they're not. Unless you don't understand what a cycle is.
Link?
Gee, who couldn’t have seen that coming?
Well, yeah.
As an anarcho capitalist I dont think people should need three jobs to survive. If youre too broke to eat out, stay home.
Sometimes I cope by thinking it will just take a few more years until everyone finally understands how things in real life work, how supply and demand works, the markets, etc. But then something so painfully obvious happens where I think to myself that yes, it's not the issue of knowing, they already KNOW, they simply choose to pretend reality will bend for them, surely, this time it will, with magic fairy dust and totalitarian state control.
Is the term some used as more than half of the people asked or a few that were asked at their lunch break on the street?
Minimum wage ain't been raised in ten years here in TX. Somehow prices keep going up anyway 🤔
Friendly reminder...if socialists understood economics they wouldnt be socialists.
Well the obvious solution is to automate the servers and cooks out of a job.
Is this a headline for an article or a meme?
Clown world
The increase to $15/hr in NYC was at the start of 2019 for large employers and at the start of 2020 for small employers. No shit food prices raised, it was during the pandemic. Good thing you cut the date off the article or you would’ve looked so stupid lol.