4 ms·

Are you really going to starve ? Why aren't the products you need to buy to not starve cheaper ? Maybe because of this kind of laws

codedokode 8y ago
In a free market without minimum salary, it would be difficult for people living alone and having kids (so they have to pay rent and for kindergarten or school), to compete with someone living with parents (and not paying any rent) or with immigrants living 8 people in a room.
- ttoinou 8y ago
  And of course, in minimum wage societies money, resource, wealth just fall from the sky and all the people you described have kids, nannies, multiple houses just like that. We should just ban poverty it will solve everything
  - codedokode 8y ago
    Resources, houses and other nice things are created by people who work. It is not like everyone stops working after setting minimum wage. Business owners might get little less profit, but somehow I don't feel sorry for them.
    - ttoinou 8y ago
      You example was rather extreme so le met take an extreme example : put the minimum wage at 1 million USD / month. What happens ? but somehow I don't feel sorry for them Of course you don't. But do you for people who weren't able to work because of the minimum wage law and its enforcement ?
joh6nn 8y ago
Kraft-Heinz had $26.2B in sales in 2017, of which $9B was profit. They had 39K employees. If we naively assume that all 39K are minimum wage employees working full time all year, that comes out to a payroll cost of $1.2B. that's approximately 5% of their total revenues, meaning if it had to be paid for exclusively through new sales, the price increase per item sold would likely be 5%. In reality, it would be much lower than that because Kraft-Heinz is already paying a large portion of that $1.2B in its existing payroll costs and not all of its 39K employees are minimum wage workers. So the argument that food is expensive because of employee wages is provably false.
- ttoinou 8y ago
  provably false False because you take a "real world" example and twist it to fit your beliefs ? A good amount of the cost of what is produced comes from work. Hence the cost of inputs is also dependent on the cost of work (does the company you refer to contracts with suppliers ?) If you force work to be paid 1 million USD / month, what happens ?
  - joh6nn 8y ago
    I didn't twist it to fit my beliefs: i presented a scenario that is actually more expensive than what it would be in reality and showed how even that would not be a substantial increase in cost, even if it was paid for exclusively by increasing the price of products sold. A $1M/mo additional increase in supply costs would be less than .1% of their revenue. It just manages to be .1% at $10M/mo. Given that the $1.2B/yr payroll cost I cited above is actually only 4.5% of Kraft's yearly revenue (I rounded up to 5% for simplicity), the additional supply chain cost you present would actually be covered by the 5% price increase I initially mentioned. It would in fact be covered by that 5% even at $10M/mo.
    - ttoinou 8y ago
      But this company buys products from others company so ultimately an increase in wages will feed through almost all inputs, hence output. Your calculation is wrong
      - joh6nn 8y ago
        Yes, you already said that. You asked what would happen if their supply chain raised payroll (and therefore prices) by $1M/mo. And I answered that question.
        ttoinou 8y ago
        No my question is setting the minimum wage to 1 million USD per month (per employee obviously). Of course 1 million USD / month more in cost is nothing

codedokode 8y ago

In a free market without minimum salary, it would be difficult for people living alone and having kids (so they have to pay rent and for kindergarten or school), to compete with someone living with parents (and not paying any rent) or with immigrants living 8 people in a room.

ttoinou 8y ago
And of course, in minimum wage societies money, resource, wealth just fall from the sky and all the people you described have kids, nannies, multiple houses just like that. We should just ban poverty it will solve everything
- codedokode 8y ago
  Resources, houses and other nice things are created by people who work. It is not like everyone stops working after setting minimum wage. Business owners might get little less profit, but somehow I don't feel sorry for them.
  - ttoinou 8y ago
    You example was rather extreme so le met take an extreme example : put the minimum wage at 1 million USD / month. What happens ? but somehow I don't feel sorry for them Of course you don't. But do you for people who weren't able to work because of the minimum wage law and its enforcement ?

joh6nn 8y ago

Kraft-Heinz had $26.2B in sales in 2017, of which $9B was profit. They had 39K employees. If we naively assume that all 39K are minimum wage employees working full time all year, that comes out to a payroll cost of $1.2B. that's approximately 5% of their total revenues, meaning if it had to be paid for exclusively through new sales, the price increase per item sold would likely be 5%. In reality, it would be much lower than that because Kraft-Heinz is already paying a large portion of that $1.2B in its existing payroll costs and not all of its 39K employees are minimum wage workers. So the argument that food is expensive because of employee wages is provably false.

ttoinou 8y ago
provably false False because you take a "real world" example and twist it to fit your beliefs ? A good amount of the cost of what is produced comes from work. Hence the cost of inputs is also dependent on the cost of work (does the company you refer to contracts with suppliers ?) If you force work to be paid 1 million USD / month, what happens ?
- joh6nn 8y ago
  I didn't twist it to fit my beliefs: i presented a scenario that is actually more expensive than what it would be in reality and showed how even that would not be a substantial increase in cost, even if it was paid for exclusively by increasing the price of products sold. A $1M/mo additional increase in supply costs would be less than .1% of their revenue. It just manages to be .1% at $10M/mo. Given that the $1.2B/yr payroll cost I cited above is actually only 4.5% of Kraft's yearly revenue (I rounded up to 5% for simplicity), the additional supply chain cost you present would actually be covered by the 5% price increase I initially mentioned. It would in fact be covered by that 5% even at $10M/mo.
  - ttoinou 8y ago
    But this company buys products from others company so ultimately an increase in wages will feed through almost all inputs, hence output. Your calculation is wrong
    - joh6nn 8y ago
      Yes, you already said that. You asked what would happen if their supply chain raised payroll (and therefore prices) by $1M/mo. And I answered that question.
      - ttoinou 8y ago
        No my question is setting the minimum wage to 1 million USD per month (per employee obviously). Of course 1 million USD / month more in cost is nothing