Another perspective on the Amazon $15.00 minimum wage issue  

 

GregBO
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22/10/2018 3:51 pm  

U.S. workers at Amazon were given a pay raise to $15.00 per hour, sounds good without any more thought, that will become effective on Nov 1.  Given the current U.S. low unemployment marker this will actually cause significant issues with small businesses, especially those that are in competition with Amazon.  Given the sheer scope and scale of Amazon's product offerings, almost every business type in the U.S. is impacted.

Many retailers have raised salaries, bonuses and offered other benefits in efforts to keep current employees, as well as to hire new recruits to replace seasonal workers.  Few of these businesses have been able to reach $15.00 per hour and other BigBox stores are looking at decreasing profits based upon increased labor costs.

Look for more companies besides Sears and K-Mart to feel the pinch of Amazon's continues responses to concerns about employee and workplace equities.

​"What we have done for ourselves alone dies with us; what we have done for others and the world remains and is immortal." -Albert Pike

​"​My father didn't tell me how to live; he lived, and let me watch him do it.​" - Clarence Buddinton Kelland


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BigSiameseCat
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22/10/2018 4:25 pm  

In constant dollar terms $15/hr is still less than the minimum wage in the 1960's. One would hope that the businesses are not less productive than they were at that time.


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Market Watcher
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22/10/2018 4:34 pm  

In my area Amazon went to 17 an hour and still can't get people to work there. The environment is horrible from what I hear.

As far as Sears and K-Mart go they are one company known as Sears Holdings /ticker shld/. Amazon is not the cause of their demise. This lays at the feet of Eddie Lampert the hedge fund manager who took it over in 2005. He tried to go Gordon Gekko on the business and it blew up in his face. I have no idea why a fund manager would want into retail. At last check the stock was at 42 cents and going to 0. Chapter 11.


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The Evil Genius
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22/10/2018 4:38 pm  

I'm showing my age: When I worked at Sears in 1990 I was paid 4.25 and hour and when I switched over to Lowes I thought I was shitting in high cotton because I started at 5.50. When I started working for the VA as a housekeeper in 2000 my hourly rate was 7.75. My how things have changed.  15 and hour for even shit jobs? No wonder every third world reject is trying to get into the country. 


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GregBO
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22/10/2018 5:12 pm  
Posted by: BigSiameseCat

In constant dollar terms $15/hr is still less than the minimum wage in the 1960's. One would hope that the businesses are not less productive than they were at that time.

Absolutely BSC. Any raises are eaten up by consumer good inflation. 

​"What we have done for ourselves alone dies with us; what we have done for others and the world remains and is immortal." -Albert Pike

​"​My father didn't tell me how to live; he lived, and let me watch him do it.​" - Clarence Buddinton Kelland


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GregBO
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22/10/2018 5:17 pm  
Posted by: Market Watcher

In my area Amazon went to 17 an hour and still can't get people to work there. The environment is horrible from what I hear.

As far as Sears and K-Mart go they are one company known as Sears Holdings /ticker shld/. Amazon is not the cause of their demise. This lays at the feet of Eddie Lampert the hedge fund manager who took it over in 2005. He tried to go Gordon Gekko on the business and it blew up in his face. I have no idea why a fund manager would want into retail. At last check the stock was at 42 cents and going to 0. Chapter 11.

Check regarding their poor leadership choice, but the overall corporate strategy of not adapting to the influx of BigBox stores and the change from domestic spending to Internet shopping was indeed a large reason for their ultimate failure.  Both were retail icons for many decades and are just the latest to fall in today's Internet based consumer whirlpool.  

​"What we have done for ourselves alone dies with us; what we have done for others and the world remains and is immortal." -Albert Pike

​"​My father didn't tell me how to live; he lived, and let me watch him do it.​" - Clarence Buddinton Kelland


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BigSiameseCat
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22/10/2018 6:02 pm  

With the right type of job and living situation, $17/hr is acceptable as a single man, it even allows for discretionary spending/saving.


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Don Keyknob
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22/10/2018 6:23 pm  

The $15 an hour argument


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GregBO
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22/10/2018 6:37 pm  
Posted by: BigSiameseCat

With the right type of job and living situation, $17/hr is acceptable as a single man, it even allows for discretionary spending/saving.

Check but no retail company is offering non-benefits employees $17.00 an hour.  The $15.00 per hour wage rate was created during attempts to unionize and while the fast food industries (Service Employees International Union (SEIU)) did not unionize, the specific dollar figure has remained in the public mindset for other service sector jobs as well.

The U.S. living wage is determined for two adults and two children and was an average of $15.15 in 2015.

2016-08-19 A Calculation of the Living Wage by Nadeau figure 2

Per your suggestion, a single male earning $30,00 per year and able to find reasonable housing prices, not always a guarantee, would have an extra 25% available to cover long term expenses.  

Figure 4: Metropolitan Areas with the Highest and Lowest Living Wages for a Family of Four (2 working adults, 2 children), before taxes.

2016-08-19 A Calculation of the Living Wage by Nadeau figure 4

​"What we have done for ourselves alone dies with us; what we have done for others and the world remains and is immortal." -Albert Pike

​"​My father didn't tell me how to live; he lived, and let me watch him do it.​" - Clarence Buddinton Kelland


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BigSiameseCat
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22/10/2018 6:46 pm  

I agree that you likely won't find $17/hr in retail. The junior heavy equipment operators are paid that much where I live, any who have dependents have to work 60 hours or more a week to meet expenses.


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Joseph
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22/10/2018 7:28 pm  

America is the land of captialism for small business. If the business owners can't compete they go under. Meanwhile big business gets government welfare.

There are two rules of law. One for the rich and one for all the rest. Life isn't fair and thats why I say fuck it. Protect your own.

There is no reality for old men.... Men out of time with themselves...... Of this fake dimension.......


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GregBO
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22/10/2018 8:33 pm  
Posted by: BigSiameseCat

I agree that you likely won't find $17/hr in retail. The junior heavy equipment operators are paid that much where I live, any who have dependents have to work 60 hours or more a week to meet expenses.

Check and all the clamor is about 4 person families, not single men, single parents but two income streams coming in. If you have two adults both working 40 hours a week, $60,000.00 will allow you to do more than survive in most locations.

​"What we have done for ourselves alone dies with us; what we have done for others and the world remains and is immortal." -Albert Pike

​"​My father didn't tell me how to live; he lived, and let me watch him do it.​" - Clarence Buddinton Kelland


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GregBO
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22/10/2018 8:36 pm  
Posted by: Joseph

America is the land of captialism for small business. If the business owners can't compete they go under. Meanwhile big business gets government welfare.

There are two rules of law. One for the rich and one for all the rest. Life isn't fair and thats why I say fuck it. Protect your own.

Check Joseph.  That's one reason why small business is anti-union and anti living wage as it all comes out of their bottom line.  The U.S. middle class is suffering and the small business are being killed.  If you are not a food related service industry in my metropolitan area, you are part of a regional or national service group for 85%+ of the businesses.

​"What we have done for ourselves alone dies with us; what we have done for others and the world remains and is immortal." -Albert Pike

​"​My father didn't tell me how to live; he lived, and let me watch him do it.​" - Clarence Buddinton Kelland


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Uly The Cunning
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29/10/2018 8:10 pm  

The problem will not be resolved until quality is back to being more important than quantity. Once we reclaim the principle of value, then we can make choices on worth while employment. The fact remains, after the world war, the work force doubled and the number of jobs has never been able to match that. We lost value in work, because people don't feel valued by their compensation. The end product shows this. Cheap, feeble products that break down exceedingly fast, without any plans to improve. 

"Remember, you're fighting for this woman's honor, which is probably more than she ever did."
Groucho Marx: Duck Soup (1933)


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