Message from @Colonel Sanders™
Discord ID: 540018547733168141
hi visitor
have you taken any formal economic classes
im assuming you're in high school so maybe like ap macro/micro?
well one of the things that you learn when you begin studying economics is what minimum wage does to buisnesses
minimum wage is a price floor, which means that businesses can't go below it
firms try to operate at an equilibrium point at least right, so they're not losing money
when the price floor is put, legislation puts it above this equilibrium causing the business to undergo losses if they maintain current production
so they fire workers, increase production whatever to cut losses
ideally a business should not have to do this because it ends up hurting the market even if people are being paid more as seen above^
@hcaez why isn’t Mom back from the store
she'll be back soon
a good example is walmart
Yes Walmart is a store
Walmart makes 480 in revenue, awesome, but they have 465 in costs
Thank you Kanye, very cool!
so their profit is 15 billion
people may say "WOW 15 BILLION WHY DOESNT WALMART INCREASES WAGES"
sure they could, but Walmart has other things to do besides that
Retarded niggas be like “why don’t I get more money for pushing buttons on a cash register”
Amazon and Target are not sitting still, it's a competition they're all constantly improving so that means if Walmart wants to stay running they need to do R&D
opening new stores and new logistics also costs money
people attack walmart for their wages when companies like Apple should really be the ones attacked
Each Walmart store is only 1.2M profit
Apple has higher profit margins than walmart but a lot less employees
so what does this suggest when apple wages at the apple store are the similar to walmart?
🦆
yes exactly
Apple is exploiting their employees 80x more than walmart is, but no one complains
How
okay think about this
at the apple store, employees get paid 15 an hour, walmart employees get paid 11
I mean
so from this you might assume walmart is scamming its employees, but that's not the case
In FY2017 walmart made 14 billion in profit
in FY2017 apple made 10 billion ALONE IN Q4
So Apple makes about 3.5x more profit than walmart
Yea but there the same low skilled shitty jobs
The idea behind a small minimum wage rise is that the marginal benefit it provides the workers who share it is less than the marginal cost to the business
Apple employs less people than walmart
Now, if that isn’t true, then the minimum wage hike should be reconsidered
so at the end of the day, even though the wage is higher, Apple is making a lot more profit than walmart is per employee
Kill all Muslims
But minimum wages can lead to a net social gain if the business is able to absorb the extra costs well enough
In order for them to be equal, Apple would have to pay its employees about 36 an hour
but they're only paying 15