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They sure buried the lede there "Let me catch up with you. What we're seeing here is the research shows if workers get paid more, to earn the same profit, busi
by mbgerring 9y ago
They sure buried the lede there
"Let me catch up with you. What we're seeing here is the research shows if workers get paid more, to earn the same profit, businesses need to cut on something and where they're cutting is around the edges on hygiene?"
The issue is business owners who want to earn some ridiculous multiple of what their employees do. The haircut should come from their profits.
- brianwawok 9y agoWhat is a fair profit for the owner of a small restauraut? Put 500k in to start it. Puts in 70 hours a week. Since you want to say what a fair profit is, what is it? 30k a year? 200k? 500k?
- the_evacuator 9y agoRestaurant profits are controlled by landlords. The rent goes up just to the point where the business survives. Due to the natural shortage of space, this works perfectly for landlords and not very well for anyone else. What the minimum wage does is create an unmoveable barrier that can't be negotiated away. Minimum wage lowers the maximum rent the landlord can charge without killings the tenant. The wages come out of the landlord's pocket, not the business's.
- humanrebar 9y agoWhat about in small rural towns where rent isn't as egregious?
- 35bge57dtjku 9y agoTheir prices are lower.
- the_evacuator 9y agoI agree that minimum wages need not be uniform over large geographical areas.
- humanrebar 9y ago> The wages come out of the landlord's pocket, not the business's. I was referring to this claim. If rent is a relatively modest expense, how does a minimum wage come out of a landlord's pocket?
- ThrowawayR2 9y ago> The issue is business owners who want to earn some ridiculous multiple of what their employees do. The haircut should come from their profits. Profits for most restaurants are razor thin relative to the amount of work the owner puts in and risk taken, so I'm not sure what the relevance of what you're saying is. The average restaurant owner isn't that much better off than their employees.
- wolco 9y agoThey do take big risks. The average restaurant in a big city will set you back half a million on the cheap side. But owners are no way on par with employees.
- humanrebar 9y agoEven when accounting for losses? Employees don't lose money when the business struggles or fails.
- TheAdamAndChe 9y agoRight, but their average pay isn't nearly as good as the business owner's. Most restaurant workers live paycheck to paycheck, have no healthcare, and no leverage. While there is risk involved in being an owner, it's still a much better position to be in than a minimum-wage worker. It's also a matter of a return on capital vs return on labor. Business ownership can grow exponentially as profits are reinvested. For the worker, though, returns are linear based on hours work. And since they mostly live paycheck to paycheck, they can't exactly invest much free cash without living with their parents or something, which many workers don't.
- 35bge57dtjku 9y agoWhat percentage of restaurant owners are making more than 60k/year?