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It's not a labor shortage – it's a wage and workers rights shortage

thehill.com

381–390 of 427 posts

Re: It's not a labor shortage – it's a wage and workers rights shortage

#381
post #52
post #12

Painfully obvious too. My little local Mexcian place will be closing down because of a lack of cooks. Talking to the owner, he was complaining about government benefits, and how they all want $20 an hour. I don't understand it, that you'd either a) be willing to drive your business into the ground serving a limited menu because you won't hire a couple cooks at $20 an hour, or b) have a business so close to the brink…

You're presenting it as he has an infinite money supply and just of pure stupidity and greed doesn't want to pay $20 or $50 per hour. Maybe his supply is not unlimited, and maybe nobody would buy a taco for $50 and he knows it, and he made the calculation and decided there's no way to pay all his costs, charge the price that people would be willing to pay, and make a profit. Now, if you know how to do it, there's a b…

If you can't pay your employees a living wage your business does not deserve to exist. I don't care if it's a small business owner or $megacorp.

Re: It's not a labor shortage – it's a wage and workers rights shortage

#382

Earlier quoted context omitted.

Then that dude should legit go out of business and get a job as a janitor for $16,000 per year.

exactly. we should strive to replace all businesses with chains and large corporations. /s heck maybe by then they can just automate away the jobs too

Yeah. Real nice to go to the extremes. What's next on your argument list...that we should all kill ourselves and there won't be any supply and demand and therefore have a permanent solution?

No. What I am saying is that if you are only earning $5,000 per year, you should go out of business, because clearly, that person is a horrible business person. Maybe he is not doing any marketing. Maybe horrible food with substandard ingredients. Maybe he never heard of the maxim "location, location, location." Maybe he never cleans the restaurant and it is a filthy mess and has a filthy bathroom (I've been to restaurants like this, and immediately walk out - if they can't clean the bathroom, what does their kitchen look like?). Maybe he spending extravagantly on stuff that doesn't make a difference. Maybe he has too many employees.

I used to live in San Francisco, which is a real foodie town. People go out to the restaurants all the time - plenty of people, and lots and lots of small restaurants. And there were restaurants opening and closing all the time, and there were restaurants that have been open for 100 years.

The restaurant business is one of the most unforgiving industries that one can get into. But, there is no reason at all to go out of business, unless one needs to go out of business because they are a shitty business person, or if tastes and mores have changed, whatever.

Only chains and large corporations /s

Re: It's not a labor shortage – it's a wage and workers rights shortage

#383

Earlier quoted context omitted.

Claims like this about UBI are simply unknown. You can't say it with any certainty, not even close. To begin to have UBI you'd have to increase taxes substantially, and you'd have to prove that doing that would actually lead to better results for businesses and the people.

The taxes thing confuses people mostly because they don't understand how existing phase outs work. Right now the government pays benefits that are already close to what a UBI would pay, but in food/education/housing/other assistance. Then those benefits aggressively phase out. The phase outs are crazy. First, they invert what you want from a progressive tax system, because lower income people are paying the highest m…

>they overlap randomly to nonsensical effect.

Lots of the nonsensical stuff is not exactly random.

Still the finances could be balanced like this and you could end up with an equal number of recipients receiving the same average benefit. Perhaps some efficiency through consolidation.

There is serious consensus that this amount has not been enough for a while which is one of the things that sparks the discussion about UBI more often.

Walmart & McDonalds might presently be employing the most noticable share of present recipients, but that is far from universal. Yet.

Just like with health care, to get anywhere near universal you're going to have to tax something having deeper pockets than mere income no matter how many of the top wage-earners get high brackets and have loopholes closed.

You're going to have to tax commerce.

If that could be done plus phase out the income levies, that would be the best thing for a consumer economy in over 100 years.

Re: It's not a labor shortage – it's a wage and workers rights shortage

#384

Earlier quoted context omitted.

I don't have US TV. It sounds rather funny to me, though. The bitching about lazy people won't change anything. In contrast, bitching about greedy businesses may lead to harmful legislation.

> The bitching about lazy people won't change anything. This is wrong. A Presidential candidate going on a crusade against "welfare queens" changed LOT in the US.

In what way? Granted, it seems possible that welfare programs are eventually being canceled, but I thought the US doesn't have many to begin with (except for the Corona help atm)?

Re: It's not a labor shortage – it's a wage and workers rights shortage

#385
post #307

Earlier quoted context omitted.

Yeah, demand is totally inelastic to price.

Well presumably all restaurants would have similar issues hiring cooks so prices should rise everywhere. I would wager that demand for restaurant food as a category is less elastic than demand for any one particular Mexican restaurant's food.

At the margin consumers are sensitive to price. A family of 4 might skip out on getting drinks with their order if the price goes from 36->40$. Drinks are where the entire profit for many restaurants comes from.

In terms of total market, the effects are well studied in the field of labor economics.

Big producers can easily absorb the added labor costs. They outsource some elements of their labor (prep work). They simplify menus for better economies of scale. They cut back hours on marginal employees and add hours for high productivity ones.

Small shops without economies of scale struggle and go out of business. A restaurant owner that owns 1 restaurant is likely working full time to keep it afloat. The added time to respond to the current labor market can break the camels back. vs. McMegacorp that has people that sit around and optimize cost all day long.

So the trade off is more McDonalds and Chipotle and less Albertos burrito stands.

Re: It's not a labor shortage – it's a wage and workers rights shortage

#386
post #52

Earlier quoted context omitted.

You're presenting it as he has an infinite money supply and just of pure stupidity and greed doesn't want to pay $20 or $50 per hour. Maybe his supply is not unlimited, and maybe nobody would buy a taco for $50 and he knows it, and he made the calculation and decided there's no way to pay all his costs, charge the price that people would be willing to pay, and make a profit. Now, if you know how to do it, there's a b…

If you can't pay your employees a living wage your business does not deserve to exist. I don't care if it's a small business owner or $megacorp.

Absolutely! I don't owe you anything so why should I be obliged to work your less than $20/hr job if I don't want to? I find it absolutely arrogant of restaurant owners.

Your restaurant doesn't have a right to be in business and I am not obligated to work for you.

Re: It's not a labor shortage – it's a wage and workers rights shortage

#387
post #52

Earlier quoted context omitted.

You're presenting it as he has an infinite money supply and just of pure stupidity and greed doesn't want to pay $20 or $50 per hour. Maybe his supply is not unlimited, and maybe nobody would buy a taco for $50 and he knows it, and he made the calculation and decided there's no way to pay all his costs, charge the price that people would be willing to pay, and make a profit. Now, if you know how to do it, there's a b…

Depends on how you look at it. If the owner has 10 restuarants, and is making $750,000 per year, let's say, then he or she does have an unlimited amount of money, compared to the workers, especially if the workers are making the federal minimum wage of $7.25. If they have a small mom and pop company that cannot pay workers at least $50,000, then they need to go out of business. Then, as more and more shops go out of…

> But if I see that they have 10 restaurants and make $750,000 per year, well, f the f out of them. But, business owenrs, show me your financials. You don't want to? Fine. Do it yourself. But I'm not going to work for $18,000 with zero benefits, while you're making $750,000. You say your contributions is worth more? Good. Do it yourself. I, and everyone else, don't accept that wage anymore, so do it yourself and go out of business, and you won't get that $750,000 per year anymore anyways.

How did the owner get 10 restaurants? They likely started with one and carefully scaled up over time as they could afford to, each time taking on risk that they fail and wind up with less than what they started despite all the effort. The business exists to benefit them, not to provide a place for people to work, that's a consequence. One reason employees make less than owners because there's less risk involved. They show up and do a job in exchange for money. Most employees have no equity in the business.

If you want to become a big shot owner making hundreds of thousands then you need to do it yourself and put your capital at risk, become a partner, or get a loan. There's no guarantee it will pay off but there's incentive to, which is why people do it. If there's no incentive or it's not great enough and the risk won't be taken. That means less people opening or expanding businesses, which leads to less opportunity for workers as there are less demand for their labor, and less wealth for society as there is less stuff to spend money on.

If you're not comfortable with the risk of being an entrepreneur and someone is willing to pay more for the same labor you're well within your rights to work for someone else.

Re: It's not a labor shortage – it's a wage and workers rights shortage

#388
post #78

This is also about healthcare, which is trickle-up economics. If workers and employers alike are not concerned about paying thousands a year for premiums, that would be a double benefit that would appear as jobs. If the US can spend billions on fossil subsidies and trillions on military and foreign wars, it should be a no brainer to stimulate domestic the economy with universal healthcare.

> If the US can spend billions on fossil subsidies and trillions on military and foreign wars, it should be a no brainer to stimulate domestic the economy with universal healthcare. The numbers you're looking at are too small. The war on terror cost $8 trillion in 20 years.[0] That's $500 billion a year. Divide this by US population (330M) and you get $1,515. How much healthcare could you buy for that per year? And d…

Considering that most people don’t need much more than an annual checkup, quite a lot of healthcare.

Re: It's not a labor shortage – it's a wage and workers rights shortage

#389

Earlier quoted context omitted.

Depends on how you look at it. If the owner has 10 restuarants, and is making $750,000 per year, let's say, then he or she does have an unlimited amount of money, compared to the workers, especially if the workers are making the federal minimum wage of $7.25. If they have a small mom and pop company that cannot pay workers at least $50,000, then they need to go out of business. Then, as more and more shops go out of…

>If they have a small mom and pop company that cannot pay workers at least $50,000, then they need to go out of business. wow, this site really does skew toward coastal cities in the US doesn't it? $50k a year is a high end white collar salary enough to buy a (often significantly) better than median home on a single salary and enough to be considered in the upper 25% income for most of the places I have lived. I thin…

This does not skew at all towards the coastal cities. In the coastal cities, even a two income home, with both people earning $300,000 cannot even afford a home. $50,000 would be a joke of a joke.

First thing: let me ask you this...are you a business owner and have a vested interest in keeping wages down? Or maybe your parents or friends are business owners and you sympathize with them?

This is not about whether it is a coastal or rural issue. It is about a fairness issue.

No matter what city, rural or urban, if a business owner owns 10 locations and is making $1.5 million per year, let's just say for example, and he or she is paying $7.25 per hour for a total of $14,500 per year, and with zero health insurance, only offering 30 hours per week in order not to provide benefits that they do have for full time employees, and treat employees like sh-t, F them. I don't care if $14 is a lot in a rural area. That's not the point. I know you want it to be the only point to argue, because maybe it in your best interest to argue only that point.

However, even if it is only politically/philosophically your point, like maybe you are a libertarian or something, your viewpoint is probably that employers are free to offer any wage, and employees are free to accept it or not. Well, what is happening, is that employees are not accepting in droves. And this is causing business owners to say, "No, we don't mean free offer and acceptance, what we means is we say that in order for us to not seem like the total c-nts that we are, but now that people are taking us up on that and not accepting our offers, we want to cry like the whiny b-tches that we are and complain about how people that should be working for us, are not, and now we can't make $1.5 million while paying them $14,500 per year." That's what this is really about.

And there are a lot of other false arguments. That "the owner took the risk and is entitled to the reward." Fine. Ok. Great. Do the whole thing yourself then. Perfectly fine. Go to it dude, or dudette. Knock yourself out.

Or, sometimes people say that the money is "all on paper", another shitty argument. Jeff Bezos only takes an $80K salary, and is taxed only on that. Most of his wealth is "all on paper." So, you (not you you, but those who say it is paper wealth, I don't know if you do) are telling me, seriously, that if Bezos goes into a bank, and the banker knows it is Bezos, and Bezos applies for a loan to buy a $10 million home, that the banker says, "No, you only have a salary of $80,000." That is because the "paper wealth" is actually collateral, as are all the equipment, inventory, real estate, etc. Same as any business owner.

Another fallacy is "the business owner can't re-invest if they pay out larger salaries and provide more jobs." Yeah, right. With their multi-million homes, and vacations to Gstaad, Switzerland and safaris to Africa. I haven't seen Jeff Bezos do one god damn thing with his $200 billion, except keep trying to drive his employees wages down and trying to keep them from unionizing. Yet, HE doesn't want to keep HIS salary down, and recently bought a $150 million home in Los Angeles.

And, yet another fallacy, "business owners pay 80% of taxes." Who give a fluck? They should pay a lot more. You think this is ridiculous and communist? You have been brainwashed by the all-pervasive media. If one is into MAGA - Make America Great Again - or a libertarian, or whatever, you have to realize that if you turn back the clock, for most of the 20th century, tax rates on the wealthiest in the highest tax bracket was from 70% - 90%. It changed in 1986, when Ronald Reagan got it reduced to about 35%. And that is about the exact time that the rich started getting richer and poor started getting poorer.

In 1965, CEOs in the US earned 20 times more than the average worker but by 2015 it had risen to 300 times.

The issue is a lot bigger than just what the pay is. It is about income inequality. If you don't like it to be on that topic, and how it should be only about what is 'affordable', hey, that is just your opinion, as well as the business owners, too, conveniently.

But, employees are entitled to their own opinion, and that is that business owners who don't share in the wealth can go f themselves.

And, for the little place that goes under because can't afford to pay, well, raise your prices to cover it. If that means that you have to raise the price of pasta in your restaurant from $15 to $40, then do it. But, that is hilarious, because the owner would want to just take that as well, and not pay the employees a dime of it. And if they can't raise prices to cover costs, including investing in employees, then it is the capitalist way - go the f out of business. You suck at business. You are not providing a great dining experience that customers will pay more for.

And, the more mid-sized business owners who ARE making millions per year, they also won't pay the increased prices and increased revenue to employees, in order that they can buy their yacht or whatever. Or a bigger house so that their vain spouse can brag about it at cocktail parties.

But again, let the owner do all of the work himself. That's fair enough, if employees won't work for those low wages any more, be they in rural or urban areas, whether or not they can buy a low-end house or not. Business owners can just suck a big one if they are greedy, like most are. Tax them at 90% at the top tax rate. AND, that includes wealth, like stock. Let them sell it off to pay 90% taxes, so Bezos would owe taxes of $160 billion. And again, this is not me being a socialist or communist, but what actually happened when America actually was great, from the 1918 to 1985.

Re: It's not a labor shortage – it's a wage and workers rights shortage

#390

Earlier quoted context omitted.

Depends on how you look at it. If the owner has 10 restuarants, and is making $750,000 per year, let's say, then he or she does have an unlimited amount of money, compared to the workers, especially if the workers are making the federal minimum wage of $7.25. If they have a small mom and pop company that cannot pay workers at least $50,000, then they need to go out of business. Then, as more and more shops go out of…

> If they have a small mom and pop company that cannot pay workers at least $50,000, then they need to go out of business why? if people choose to work there it's consensual, if they don't then sure but they don't need to. and what's wealth inequality look like when we're left with corporations and chains owning everything? when small mom & pops can't compete or even get off the ground.

That is what I'm saying. Employees are NOT choosing to work, because income disparities are too high. For most of the 20th century, tax rates were from 70% to 90%. It changed to around 35% in 1986 after Reagan passed an act setting it this low. And that is when the rich started getting richer. In 1965, CEOs were making 20 times more than the lowest paid worker. Now it is 300 times more.

I say that employees should not go to work for corporations and chains, either. F them all.

I have some sympathy if the mom and pop if they barely make any money, but there are some mom and pop places out there where the mom and pop own 10 locations, which is not huge, compared to chains. But they are making $1.5 million in income per year, all the while they are making sure that employees don't work more than 30 hours per week so that they don't have to pay benefits, no health insurance, treat them like crap and not dignity. I know that all businesses don't do this, but probably 95% do, even though I have no citations for this. But I rarely read about those companies who do. And don't say many do, but nobody hears about them. No way.

And again, for the person making $5,000 per year, who cares if they go out of business. They are NOT doing it right. It is only logical that they should get a janitorial job, or work in a stock room for $30,000 per year. It's just logical. And, with making $5,000 per year, their restaurant is probably filthy, bathrooms filthy, substandard ingredients, dirty kitchen, sh-tty chairs and tables, indifferent wait staff and cooks. Again, not every single one. But if you're making $5,000, that sure is the way to bet.

Furthermore, if there are only companies like Amazon making all the sales, then that is a monopoly, and it should be broken up. Monopolies are the bad part of capitalism, and is why the government should break them up. That is what they did with AT&T in the 1980s and telecommunications really took off after that.

You are using a straw man argument.

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