Companies Are Preparing to Cut Jobs and Automate if Biden Gets $15 Minimum Wage Hike,

[gamewell45]

Companies Are Preparing to Cut Jobs and Automate if Biden Gets $15 Minimum Wage Hike, reporting shows

In all honesty; if a company can save on salaries, whether they are paying $15 or $7.00 per hour they are going to do it since they are not in business to have jobs for sake of employing people. It's all about money and profits when it comes to business.

[Peter1469]

In all honesty; if a company can save on salaries, whether they are paying $15 or $7.00 per hour they are going to do it since they are not in business to have jobs for sake of employing people. It's all about money and profits when it comes to business.

True. For much of the nation $7 an hour for an entry level position is likely close to what the market will bear. $15 an hour is too high, except in high cost of living areas.

[carolina73]

How's this for a solution: For every raise in the min wage reduce business taxes by an equal amount. If you have one employee and you must raise his wage by $2/hour, then reduce your business tax by $2/hour. I'm sure everyone can calculate 2 employees, 3, 4, 5000...

The only problem is that a tax break can only be taken from profits that these new wage hikes will take away and many small businesses are operating in the red and will take four years to recover if they make it. Especially in hospitality.

[Newpublius]

The article is clear that automation will come much sooner with a $15 min wage than without it.

There are actually some interesting videos about minimum wage and its impact on car washes in places like Queens, NY. Naturally, those car washes began to automate and bring machines in. Beyond that, people might overlook that those machines are themselves a cost.

So yes, those machines are labor saving. That's great, nothing wrong with that, but that is in response to an artificially higher wage rate. Perhaps labor saving resources could have had a better labor saving impact elsewhere, but because of the price floor that was not apparently the case.

You wind up automating the wrong things because the government is interfering and the economy is then responding to incorrect price signals.

[Peter1469]

There are actually some interesting videos about minimum wage and its impact on car washes in places like Queens, NY. Naturally, those car washes began to automate and bring machines in. Beyond that, people might overlook that those machines are themselves a cost.

So yes, those machines are labor saving. That's great, nothing wrong with that, but that is in response to an artificially higher wage rate. Perhaps labor saving resources could have had a better labor saving impact elsewhere, but because of the price floor that was not apparently the case.

You wind up automating the wrong things because the government is interfering and the economy is then responding to incorrect price signals.

Right. The government distorts the markets and people react with malinvestment.

[jet57]

Companies Are Preparing to Cut Jobs and Automate if Biden Gets $15 Minimum Wage Hike, reporting shows

They'll never lay off that many people, it's too expensive and they'll lose their spending public.

It's saber rattling, nothing else.

[Peter1469]

They'll never lay off that many people, it's too expensive and they'll lose their spending public.

It's saber rattling, nothing else.

Many businesses can't afford their current level of employees at $15 an hour.

[Mister D]

Many businesses can't afford their current level of employees at $15 an hour.

Or their tenants at $0 a month.

[nathanbforrest45]

They'll never lay off that many people, it's too expensive and they'll lose their spending public.

It's saber rattling, nothing else.

You remind me of the old joke of the guy selling watermelons for a dollar less than he paid for them. When he was asked how did he make any money he replied "on volume"

There is a saying in business
When your outgo
exceeds your income
then your upkeep
becomes your downfall.

Businesses cannot long stay in business of their cost exceed their sales, regardless of how high those sales may be.

[stjames1_53]

They'll never lay off that many people, it's too expensive and they'll lose their spending public.

It's saber rattling, nothing else.

They are in the process of locking down again. If people can't work, they can't spend what they don't have. That reduces productivity, cuts profits, results in laying off more people.
The Keynesian Theory Fails as there is no money to move around or reshuffle.
Over 1 million businesses shuttered permanently with the last shut down. That's just the owners. What happens to their employees? They cannot find jobs because everything is locked down. They have no income.
That affects everything up and down the line. Then add to that a minimum wage of 15 an hour? More businesses will roll up, and that causes even more economic damage.
Meanwhile, Joe is cozying up to China and there go even more jobs.
If your plan was to make America destitute, congrats, it's working