If it means they will lay off people doesn't that mean they already have too many people. As far as using technology to replace people aren't they doing that where ever they can already. If Obama Care is going to move so many people from full time to part time won't this help a lot of the minimum wage part timers? I mean really if you don't need the people you have you are already inefficient. So really boosting the minimum wage should increase productivity.
Well, it is complicated by the fact that he CBO said raising the minimum wage to $10.10 an hour would cost between zero and 1 million jobs. Then in the bold print they published the average. Then these idiots didn't treat it as a prediction with a 500,000 job variance, but as an infallible vision of the future. That is just who they are.
The reason that any employer hires a person is because he believes he can and will produce more than he is being paid. When the price of labor goes up the employee must produce more. Depending on the business, like restaurants/fast food/retail establishments, it is very hard to justify an employee based on productivity. This is why most hire an absolute minimum of people.
I remember an interview on the business channel: Mgr of a large hotel on the beach, he has received many complaints about not enough bell hops. He agreed. He stated way back when MW was very low the hotel had 10+ bellhops, but as the MW went up he had to reduce the number. He now had 2. The hotel could not justify the 10+ with wages, taxes and benefits.
Only good socialists/progressives/liberals will not understand this. Just the way I see it.
Let's just look at a couple of businesses you are familiar with. GM and Wal Mart. Look at the assembly lines at GM.. As the UAW got higher and higher wages and benefits that the company had to pay , one of the first things I saw to leave was all of the painters, then the welders. All replaced by robots. They work 24 hours a day and never complain. I know you have been in WAL MART and noticed how many self check out lanes they have. As a kid the thing I saw that shocked me was the coal mines. As the price of labor and benefits went up they were replaced by machines. As a kid the town mine had almost 500 hand loaders, 30 years later they had less than 50 machine operators producing as much coal as the 500. Today on a long wall that is operated by 3 men I understand it mines what the 500 hand loader did.
Do not believe this #$%$ that raising wages and benefits does not cause job loss. These politicians are brain washers. MO. .
The one thing about robots that did amuse us was. When they didn't work they could yell and cuss at them but they still didn't work until a human fixed them. They couldn't fire them of threaten them. They couldn't just replace them with another one.
The jobs that were lost in the coal mines were lost for safety and health reasons along with increases in productivity. In the auto factory a lot of the jobs lost there were for the same reasons. Also they could control the quality better. The Japanese started the robotic revolution. Why was it the Japanese?
continued: Raising wages we know raises the cost of goods and services. In most union contracts there is a clause that if cost of living goes up they automatically get pay increases. What a union member told me.
I don't think in the current economic climate it would. Job loss is happening due to a loss in aggregate demand. Initially there may be some, but as more people have a bit more disposable income it may support job growth. Job creators are consumers that create aggregate demand. Capital will always find a way to fulfill actual demand and it is the only way to obtain sustainable growth. Sorry supply side voodoo glue sniffers.
Many of the MW jobs of today will be GONE in just a few short years replaced by automation and various robots. Raising the MW almost 40% to $10.10 will rapidly speed this process up. A business owner told me last week he can now purchase a machine for $100,000 that will replace three of his current employees and those employees are making $18 per hour and are getting benefits on top of that. And he gets tax benefits to buy that machine.