By using this site, you agree to our Privacy Policy and our Terms of Use. Close
sabvre42 on 21 February 2016
Edit Thread
WolfpackN64 said:
sabvre42 said:

 

One econ class doesn't count.... 

 

"Better access to education" is a liberal myth. An economy can only support so many educated jobs before creating education creep. The US is already at approximately 40% college educated adults, and it now requires a degree to work at a call center. As a good case study look at the developing nation of Peru. They actually offer FREE puplic education (based on competitiveness), yet due to an over supply of educated workers - underemployment is insane.

 

A $15 an hour federal minimum wage is also shit. Low skill jobs make up a majority of the positions that add to cost of living ranging from farms, retail, fast food, call centers, child care, PCAs (personal care attendants), warehouses, manufacturing, packaging, etc.

You'd see a spike in the cost of living of at least 20-40%. While the low skill industry will mostly self adjust and see slight raises, the middle class and those on defined payments will not. The middle class will have less to spend with, and the elderly and disabled will be screwed.

 

You will also see the the childcare industry be destroyed. If I paid my nanny $10 an hour before... I on't need $5 more an hour myself to afford her... Ineed $7. Her wages come out of my net income... not gross. Certified Nusing Assistants and Personal Care attendants are in the same boat.

The "better acces to education" is not a myth, it's real and it will only become more urgent. The US is a bad example because of the criminal amount of student debt.

And just a quick note on Peru, unemployment is just 3.6%, lower than the US, and it's one of the fastest growing economies.

You need to wage minimum wage, these people need a decent wage. Lower income jobs are also thinning out because of steadily developing automatisation. If you need to pay someone more, but you need less people working for you, prices aren't really going up.

On the contrary, prices for products and services mainly go up because companies want to make a bigger profit. Greed is your problem, not letting people have a comfortable wage.

Explain to me how a service driven economy like the US -- which really is already at market cap (aka cannot steal more market from the RotW) can support more educated workers?

I said underemployment... not unemployment. Unlike in the US, people will take whatever job they can to actually get income.

You claim you took economics but you don't understand payroll costs?

If a burger flipper makes $15 an hour and gets paid for exactly 2080 hours a year (2 weeks vacation) they get $31,500 in salary, ~ 33,696 after SS and Medicare matches. If by chance they give a 4% match - we are up to $34,956. I'd also mention the $8000 a year in healthcare, but you've already proven you want that to be free for them... and come from my taxes; so we'll just throw in an additional $1000 in benefits and round up to $36,000.

At my McDonalds, a value meal costs about $6.50. This means that revenue wise that restaurant needs to sell 5,539 burgers to afford just this one worker. This however, excludes factors such: as corporate tax; property tax; rent/repairs/building costs; electricity; distribution costs; marketing costs; corporate costs; cleaning supplies; and most importantly actual cost to produce the burger. Lets imagine that all that adds up to 50% of the cost of the meal (my guess is that its closer to 80%..). That ONE restaurant now needs to sell 11,078 value meals in order to afford to pay ONE employee.

Best part of this is... they would STILL get government assistance in addition to upwards of $7000-9000 in refundable credits (the EIC, child credit, day care credit, etc)... cause AGI.