About Last Night...
Feb. 13th, 2013 01:53 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
ericadawn16In January 1914, Henry Ford was making lots of money and his company was hugely successful but he had a problem...
High labor turnover..
What did he do?
He cut shifts down to 8-9 hours a day AND doubled their salaries!
Did this work?
Not only did it stop labor turnover but it allowed the employees to BUY THEIR OWN PRODUCTS!
In turn, they became the best commercials for their products...encouraging friends and family to also save up for a car. Cars went from a status symbol to akin to a necessity.
When the poor and middle class come into more money, they spend it on NEEDS and WANTS. The majority of these NEEDS and WANTS are bought from their very own community directly: friends and family, ensuring that the community continues.
When the rich come into more money, they SAVE it. They put into stocks, bonds, overseas accounts and other things that are NOT directly helping the community in which they live.
They are NOT job creators; the poor and middle class cause the need for jobs and enable them to be sustained. This is why the economy is the way it is even though corporations are reporting record profits and the rich are richer than ever. THEY ARE NOT JOB CREATORS!
We NEED a higher minimum wage and we NEED it tied to Cost of Living just as the president said. In fact he said, "So here’s an idea that Governor Romney and I actually agreed on last year: let’s tie the minimum wage to the cost of living, so that it finally becomes a wage you can live on."
When workers are allowed higher minimum wages, companies use it as an excuse to raises prices...negating the raise. However, when minimum wage is tied to cost of living, this is no longer possible. Each raised price will simply raise the minimum wage. Companies will have to come up with other means of dealing with the increased wages. They will think short-term; relocating, outsourcing, shoddier products and laying people off.
In the long-term, it will be undeniable that people are able to buy more and buy when things aren't on sale, improving profits immensely.
Of course, they could also help their bottom-line by getting out of health care completely and leaving that to non-profits and the government instead of tying it to employers...
P.S. Completely Unrelated...I'm enjoying Smash so much more than last year...
High labor turnover..
What did he do?
He cut shifts down to 8-9 hours a day AND doubled their salaries!
Did this work?
Not only did it stop labor turnover but it allowed the employees to BUY THEIR OWN PRODUCTS!
In turn, they became the best commercials for their products...encouraging friends and family to also save up for a car. Cars went from a status symbol to akin to a necessity.
When the poor and middle class come into more money, they spend it on NEEDS and WANTS. The majority of these NEEDS and WANTS are bought from their very own community directly: friends and family, ensuring that the community continues.
When the rich come into more money, they SAVE it. They put into stocks, bonds, overseas accounts and other things that are NOT directly helping the community in which they live.
They are NOT job creators; the poor and middle class cause the need for jobs and enable them to be sustained. This is why the economy is the way it is even though corporations are reporting record profits and the rich are richer than ever. THEY ARE NOT JOB CREATORS!
We NEED a higher minimum wage and we NEED it tied to Cost of Living just as the president said. In fact he said, "So here’s an idea that Governor Romney and I actually agreed on last year: let’s tie the minimum wage to the cost of living, so that it finally becomes a wage you can live on."
When workers are allowed higher minimum wages, companies use it as an excuse to raises prices...negating the raise. However, when minimum wage is tied to cost of living, this is no longer possible. Each raised price will simply raise the minimum wage. Companies will have to come up with other means of dealing with the increased wages. They will think short-term; relocating, outsourcing, shoddier products and laying people off.
In the long-term, it will be undeniable that people are able to buy more and buy when things aren't on sale, improving profits immensely.
Of course, they could also help their bottom-line by getting out of health care completely and leaving that to non-profits and the government instead of tying it to employers...
P.S. Completely Unrelated...I'm enjoying Smash so much more than last year...
![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
no subject
Date: 2013-02-13 08:19 pm (UTC)The cycle goes on and on -- people can't afford to buy things, so companies are forced to quit producing items, or to shut down entirely, and then more people are unemployed...
I'm not sure that the minimum wage increase will work to fix the economy entirely, since I think that the percentage of people earning minimum wage is generally quite low....maybe 3-4 percent of the population? And I don't know that increasing minimum wage is really the magic bullet to reduce costs of items. But it would help to mitigate some of the burden on the states to support people.
So wow, yay, partial agreement! I'm not entirely an evil conservative, right?