And that is why Henry Ford priced the Model T so that his employees could afford one.Or paid his employees enough so that they could buy one.Same difference.
14 years ago, I used to work part time at a local convenience store as a favor to the manager. The company offered the lowest starting wage of all the gas stations in town. Because of that, she had a hard time keeping quality employees. Employees would work for about six months to get some experience, then quit to work for a competitor. The company finally told the manager they’d raise the starting wage if she could show that two competing stores paid a higher wage. When she provided the required information, they reneged on the agreement because they didn’t want to pay that much. The cycle continued where the good employees left for to work for competitors. Shrinkage remained high, and in-store sales remained fairly low considering the prime location. The manager eventually quit in disgust and the store closed a couple of years later.
Henry Ford was visiting a factory where they made shoes. They had created an assembly line that was completely automated. The owner was so proud of his accomplishment, no need for labor at all, until Ford asked him " Yes this is all very nice, but how many shoes do those machines consume in a year?"
Maybe the government could remove some of the (the estimates vary a bit here) between $2,500 and $12,000 cost of regulations on automobiles to make them more affordable…
Cheap Labor conservatives [simplification: 90% of them] are nothing new. I remember many of my friends worked for the Spudnuts shop, which had a policy of giving an automatic raise after a 90-day probation period. In practice, this meant they would fire them on the 89th day, so there was a bit of turnover.
Every single time there is a discussion about raising the minimum wage there are whines and cries about how it will lead to lay offs, etc. I heard it when I was making $1.25 an hour and the m.w. was raised to $1.60, and I’m hearing it now. Same crap every time. When people that have jobs still need assistance there are major problems. Raise the wage today. Right now!
No, they don’t always do that. Many are excessive or unnecessary. Let me give you an example. The EPA changed the level of allowable arsenic in drinking water from 50 parts per billion (ppb) to 10 parts per billion.The only reason they did that was because test equipment had improved where it could actually measure 10 ppb accurately.The 50 ppb level was perfectly safe and not a health issue.But, because of this rule many water systems using ground water had to buy and install millions of dollars in test equipment and filration systems to comply with this rule. People serviced by these systems saw the cost of their water triple or more.How is a rule that makes you no safer or healthier but costs you significantly more good?That is one of literally thousands of regulations that are overreaching, unnecessary, cost ineffective, redundant, or otherwise useless that the government has made.
If the company had allowed the manager to pay a higher starting wage, she would have likely been able to attract quality employees who had experience. Instead, she became the trainer for stores that paid more. Additionally, she would have been better able to retain the good employees, which would have enabled her to eliminate the bad employees.
You’d think, but the labor issue isn’t why the store closed. It turns out the gas tanks had been leaking for years. I’m positive the company suspected as much, but kept the store operating. The Minnesota Pollution Control Agency forced them to shut down after a neighboring business complained about a gas smell coming from the walls of their basement.
Always taking the side of the jerks, even if you have to speak utter gibberish to do it. Apparently, your standard is that as long as you say anything at all, you’re “winning.”
Never mind that your comment shows that you have no clue what I was talking about.
This debate over the minimum wage is really a symptom of the larger dilemma. The American worker/wage earner is still feeling the repercussions of shipping jobs overseas; not just in manufacturing, but in customer service, tech support and many other fields. This, in addition to increased computerization and automation has created a huge vacuum of better paying jobs. Where can the big-box store clerk, or your burger & fries server go to improve his/her situation? It’s a big jump to get an engineering or computer programming degree! It is much more difficult for older workers who were laid off from one of these middle-class jobs, as he must now face age discrimination as well as trying to learn new skills quickly. And, with the corporate narrow-focus on “maximizing profits”, hiring is looked upon as a desperate last resort. CEO’s are required to cut operating costs to the bone to enhance investor returns. Even as business improves, they will give themselves bonuses before they would hire another body.