From tax breaks, through GMI, to FULL COMMUNISM - poverty elimination station

The Something Awful Forums > Discussion > Debate & Discussion > From tax breaks, through GMI, to FULL COMMUNISM - poverty elimination station

Vox Nihili: May 28, 2008

LeoMarr posted:

10 employes all making 10 dollars is 100 dollars an hour for staffing

bam 15 bucks minimum wage now.

7 employees making 15 dollars is 105 dollars an hour

So can 7 people spend more with 1/3rd more income If having 15 minimum wage jump your tax bracket to have about 1/3rd of your income gone every month on taxes alone.

And after they nuke the employment all the products jump by a % margin to make up for that 5 dollars or 10 dollars, or whatever the difference in wage is for the employees.

So by an average there would be 30% more unemployment for low wage earners.

Businesses generally employ as few people as possible to keep their costs low. They pay as little as the market will bear as well (since there is a great deal of unemployment, they can basically go to near-zero for nonskilled labor if there are no regulations in place). Business owners then take the excess of revenue over costs as something called "profit." Increasing the minimum wage may force some cuts and price increases, but businesses won't just lay off 30% of their labor force; that is an inane presumption. At least some of the pressure, in fact probably most, would go to reduced profits, price increases, etc.

You're applying a middle school understanding of math and economics to an issue that is actually very complex. Everyone is cringing and laughing.

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The Something Awful Forums > Discussion > Debate & Discussion > From tax breaks, through GMI, to FULL COMMUNISM - poverty elimination station