In many cases that’s true…, at least not for what you want to pay them.
Why doesn’t the rule of supply and demand apply to workers?
I keep hearing we can’t pay workers more without raising prices.
It seems to me companies aren’t worried about raising prices because of other factors.
Have you checked out the price of gas, or the prices of building supplies lately?
If you have to raise prices, so be it.
If your business can’t cut it by paying people a fair wage, then shut it down and go get a job yourself.
According to Patti Domm, for CNBC, “Workers’ wages are rising at the fastest pace in years. Companies’ profits could take a hit.”
Oh nooooo…, “companies’ profits could take a hit!”
Not the poor company owners or shareholders!
Don’t the “working poor” know their place?!
Don’t the “working poor” know they’re supposed to work for next to nothing so the rest of us can have an affordable meal, while the owners and shareholders pad their wallets?!
The nerve!
“The pandemic changed work life and as the economy reopens, it’s changing it again, with companies offering higher wages as they grapple with a labor shortage.”
“It’s been at least 25 years since U.S. businesses were willing to increase worker pay. While this won’t affect the bottom line right away, it could start to squeeze profits down the road.”
So, they admit they’ve been taking advantage of the working poor for “at least 25 years,” and now they’re crying when they have to pony up and finally pay people a decent wage for a change?
Excuse my French, but these greedy PsOS can go FOAD, in my humble opinion.
I normally don’t get so upset, but this is a topic that is near and dear to my heart. Please see my prior blogs on the working poor and the minimum wage.
‘“Under Armor’ announced this week that it was boosting its minimum wage, following other companies, like McDonald’s, Chipotle, and Bank of America.”
“Workers are getting higher wages, but at some point that could bite into companies’ profits.”
Again…, ohhhhhh nooooooooooo!
So you mean these CEOs might have to live on $10 million a year as opposed to $11 million a year?!
“As the economy reopens, costs are climbing for everything from packaging and raw materials to shipping. In addition to these expenses, companies are also paying more to get workers to come in the door.”
Like I said before…, costs are climbing for everything, across the board, but it’s the workers who are to blame, and the workers they choose to complain about.
“But the disparity between labor costs and profits has been so wide for so long, that employers should be able to increase pay if they can raise prices for goods and services or improve productivity.”
“McDonald’s said last week that it was boosting wages for the 36,500 hourly workers at company-owned stores by 10%, and Chipotle announced it will raise wages to an average of $15 an hour by the end of June. Bank of America said it would raise minimum wages for its hourly workers to $25 an hour, from the current $20, by 2025.”
Ha! By 2025?!
Why not now?
Why not guarantee a living wage by 2050, and a fair increase in the minimum wage by 2075?!
I mean, we are talking about time in chunks of 25 years, aren’t we?
“Sports equipment company Under Armor also announced it would boost the minimum hourly wage for its retail and distribution workers to $15 from $10.”
“It’s some of the strongest wage growth we’ve seen in a quarter century,” said Mark Zandi, Moody’s Analytics chief economist. He said the 3% wage growth for private workers in the first quarter was the strongest since the 1990s and productivity has picked up at the same time.”
“Employers are trying to address a labor shortage, according to Jonathan Golub, chief U.S. equity strategist at Credit Suisse.”
‘“The economy is overheating and companies, even though we have a high unemployment rate, cannot get the labor they need to meet demand and they are being forced to raise wages,’ he said. ‘It’s happening with financial services. It’s happening in industry. It’s happening in retail. You’re seeing it everywhere.’”
Yes…, it’s called capitalism, Mr. Golub.
“Golub said investors are right to wonder when the higher wage costs could pressure profit margins, but he does not anticipate it becoming a problem in the near term.”
Like I said, it’s called capitalism, Mr. Golub. And capitalism does not solely benefit owners and investors. Workers are allowed to benefit from capitalism as well!
“If this represents a trend where people begin to expect higher wages and they demand higher wages, and there’s a continuation, yes it becomes a problem,” he said. “We don’t know if this is a one-time adjustment.”
That name “Golub” rings a bell.
Maybe I’m thinking of “Golem,” from The Lord of the Rings!”
Anyway…, take your sad song walking, Golub. We have a million symphonies of sad songs out here…, you just haven’t tuned into them…, because really you just don’t care.
This crying about the loss of profits just goes on and on.
My point is, there isn’t a lot of sympathy out here for the loss of profits.
“Mike Englund, chief economist at Action Economics, said the pandemic has resulted in some permanent changes in employment. ‘We probably downsized the restaurant industry.’”
There’s no “probably” about it, Englund. The democrat COVID stupidness “downsized” many business, along with the restaurant industry.
“The industry will likely shrink in cities like New York, but it could grow in suburbs since many restaurants added takeout.”
What a maroon! Ya, none of these restaurants had takeout before!
I’m sure it couldn’t have been caused by the incessant lockdowns, the looting of their businesses, or actual damage caused by all of the “peaceful protests…,” not to mention the surge in crime, due to more liberal policies.
“One result of the pandemic is that people moved out of cities or to different regions. ‘With this shift… we’re seeing shortages, a mismatch,’ Englund said.”
Ha! No kidding. These are shortages these cities created, and are creating, themselves.
Again…, take your sad song walking…, and don’t let the backdoor hit you in the backside on the way out. On second thought…, go ahead and let it!
If you’re not already “following” me and you liked my blog(s) today, please choose to “follow” me, which will keep you up to date on all of my latest posts, and/or leave me a comment. I value your feedback and I’d love to hear from you!
Thank you, MrEricksonRules.
Mr. Erickson Rules! 