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Brown Cafe UPS Forum
UPS Union Issues
Contract raises vs. state minimum wage
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<blockquote data-quote="Mugarolla" data-source="post: 2930559" data-attributes="member: 8481"><p>Apparently not yours either since you still did not answer the question or refute the fact that UPS raises their rates due to the increased cost of labor, among other things.</p><p></p><p></p><p></p><p>Never said it wasn't OK for McDonald's to raise the price of their Big Mac.</p><p></p><p>I said it was a direct result of the increase in minimum wage.</p><p></p><p>For those who don't want to read this question, it may be long, skip it. But I would like our Economics guru [USER=44954]@DriveInDriveOut[/USER] to answer it.</p><p></p><p>You have a lawn mowing business. You have 4 guys working for you making $12/hr. It is a cut throat business, so your profit margin is very slim.</p><p></p><p>Uncle Sam now says you have to pay your guys $15/hr.</p><p></p><p>Where do you get that extra $12/hr?</p><p></p><p>Do you take it from your profit, you being the owner?</p><p></p><p>Nope. No money left for you then. </p><p></p><p>You raise the price of your mowing service.</p><p></p><p>Now Mom & Pop Catering has to pay you more to have their grass cut.</p><p></p><p>Do they take the extra money from themselves, or do they raise their prices to pay you?</p><p></p><p>Now, Joe's reception hall, who uses Mom & Pop to cater their events, now has to raise their prices to offset the higher prices from Mom & Pop.</p><p></p><p>I could continue this to the businesses that use Joe's, who now have to pay more, all because you charge more to cut grasses.</p><p></p><p>Remember, this does not take into account the extra labor costs and increased prices because Mom and Pop and Joe's have to pay their employees $3/hr more for each and every one of them.</p><p></p><p>Some businesses can afford to absorb the increase in minimum wage, but most cannot.</p><p></p><p>An increase in minimum wage will increase the cost of most goods and services proportionally.</p><p></p><p>So the minimum wage worker gets $3/hr more, spends that extra money on everyday needs because everything went up. He did not come out ahead.</p><p></p><p>The real losers are people like you and me. We did not get a raise because minimum wage went up, but we are now paying more for our goods and services. </p><p></p><p>In the long run, we lost and the minimum wage worker stayed the same.</p><p></p><p>Tear this apart if you can, but this is how the world works.</p></blockquote><p></p>
[QUOTE="Mugarolla, post: 2930559, member: 8481"] Apparently not yours either since you still did not answer the question or refute the fact that UPS raises their rates due to the increased cost of labor, among other things. Never said it wasn't OK for McDonald's to raise the price of their Big Mac. I said it was a direct result of the increase in minimum wage. For those who don't want to read this question, it may be long, skip it. But I would like our Economics guru [USER=44954]@DriveInDriveOut[/USER] to answer it. You have a lawn mowing business. You have 4 guys working for you making $12/hr. It is a cut throat business, so your profit margin is very slim. Uncle Sam now says you have to pay your guys $15/hr. Where do you get that extra $12/hr? Do you take it from your profit, you being the owner? Nope. No money left for you then. You raise the price of your mowing service. Now Mom & Pop Catering has to pay you more to have their grass cut. Do they take the extra money from themselves, or do they raise their prices to pay you? Now, Joe's reception hall, who uses Mom & Pop to cater their events, now has to raise their prices to offset the higher prices from Mom & Pop. I could continue this to the businesses that use Joe's, who now have to pay more, all because you charge more to cut grasses. Remember, this does not take into account the extra labor costs and increased prices because Mom and Pop and Joe's have to pay their employees $3/hr more for each and every one of them. Some businesses can afford to absorb the increase in minimum wage, but most cannot. An increase in minimum wage will increase the cost of most goods and services proportionally. So the minimum wage worker gets $3/hr more, spends that extra money on everyday needs because everything went up. He did not come out ahead. The real losers are people like you and me. We did not get a raise because minimum wage went up, but we are now paying more for our goods and services. In the long run, we lost and the minimum wage worker stayed the same. Tear this apart if you can, but this is how the world works. [/QUOTE]
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