12 cent Hamburgers and $600 Cars

Discussion in 'Current Events' started by wkmac, Oct 26, 2006.

  1. wkmac

    wkmac Well-Known Member

    You thinking, he must be talking about 50 plus years ago right? Well actually no, I'm talking about today. Well today in a theoretical sense.
    Interesting discussion had the Fed adopted a "no expansion" policy of the money supply back in 1959' and held that course to the present.

    12¢ Hamburgers and $600 Cars - Mises Institute

    I hope like myself, this really makes you ask the question of who really benefits in the longhaul when you consider the economic policies of the American gov't and the American Banking system, specifically the Federal Reserve.

    The flipside of this picture is we wouldn't make as much money and most likely wage rates would have declined in this same period but then in relation to the price of goods and services I doubt our individual lifestyles would be that much different. It's even possible it might be even better.

    I just found the piece thought provoking and wanted to share.

    Less than 2 weeks till the election. Like the leemings over the cliff, will you continue to do the same in that voting booth or are you strong and independent enough to do something different for a change?
  2. Thebrowntruth

    Thebrowntruth Member

    Wkmac, in UPS's defense we have held the starting pay rate for part-timers the same since the burgers were just over a dime, havent we?
  3. wkmac

    wkmac Well-Known Member

    No, UPS broke the streak with a 50 cent increase a contract or so back with starting pay now up to $8.50 and hour. The current talk in Washington on both sides of the isle is about raising the minimum wage to $7.00 plus an hour and it won't happen this election cylce but look for both parties to cave on this (willing or unwilling) in hopes of setting up their chances to buy votes for the 08' elections. I look for it to happen no matter who wins next week or who runs in 08'.

    Now how will/does this effect UPS? Well if they (UPS) continue to not move from the current PT wage trends they established back in the early 80's with full compliance with the IBT (we need to remember this to be fair) it may not be to long in the future that UPS will be forced by law to raise it's starting pay as the current levels would fall below the Federal minimum wage levels. As you move closer and closer to that wage threshold, on average, what type of worker are you generally getting?

    It's a mixed bag for sure as it's a mixed bag at an even higher starting pay but let me put it this way. If you walk into a store to buy a bag of apples and you find 2 different 5 lb. bags for sale but one is $5 per bag and the other is priced down on clearance at $1.25 per bag, which bag stands the better chance of more usable and better quality apples? And let's say you go the $1.25 route, you might comeout OK for making that apple pie (yeah it's a huge one :lol: ) but if the bad ones are to many and you return to the store and get another bag and it also comes up short and you go back for a 3rd trip for another bag you've now spent $3.75 and you've still saved money but have you? Add in the cost of your time (actual cost and lost productivity towards other tasks), gas in the car and vehicle wear and tear and tell me where you are to the good? And let's say you have the 3 bags and still are having problems so to avoid another trip you try other means to compensate and still achieve some amount of success. What will that cost in time and effort?

    Ask the operations management how many apple bags they had to go back to the store and get before they got some of the winners they have and then how hard is it to keep and retain the good ones because if they are good and unless the job itself fits a niche in their lives, they will move on to better positions as I've seen many who have and then what you are left with are at best marginal apples that require lots of extra added expense to maintain.

    I know this topic is away from the main point of the thread but your comment above knocked on the door so I decided to answer.