Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts
Tuesday, February 19, 2019
Tuesday, July 7, 2015
When City Demands Raises In Wages, The Price Of The Product Being Sold MUST Increase!
San Francisco Raises Minimum Wage 14%, Guess How Chipotle Responded?
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For some odd reason you just can’t seem to get it through the left’s thick skull that raising the minimum wage isn’t going to make poor people wealthier or stimulate the local economy.
They never listen to reason, nor do they pay attention to statistics that clearly demonstrate hiking the minimum wage usually spells economic disaster and increases poverty.
Take what Chipotle is doing in San Francisco for example, a city that recently raised the minimum wage by 14 percent.
In order to make up for the extra business expense of paying their employees a higher wage, they’ve had to offset the cost by raising their prices.
From an equity research report issued to investors by global investment banking and wealth management firm William Blair on Chipotle Mexican Grill, Inc. (NYSE: CMG) – “Price Increases Have Begun Early in Third Quarter” (received privately):• In our weekly survey of ten of Chipotle’s markets, we found the company implemented price increases in half of the surveyed markets this week—San Francisco, Denver, Minneapolis, Chicago, and Orlando. In most markets, the price increases have been limited to beef and average about 4% on barbacoa and steak, toward the lower end of management’s expectation for a 4% to 6% price increase on beef.• San Francisco, however, saw across-the-board price increases averaging over 10%, including 10% increases on chicken, carnitas (pork), sofritas (tofu), and vegetarian entrees along with a 14% increase on steak and barbacoa.We believe the outsized San Francisco price hike was likely because of increased minimum wages (which rose by 14% from $10.74 per hour to $12.25 on May 1) as well as scheduled minimum wage increases in future years (to $13 next year, $14 in 2017, and $15 in 2018).
Liberals seem to think money just magically appears in a business owner’s hands, dropped in big, brown sacks marked with a dollar sign on them by unicorns and pixie fairies, and the reason these people don’t pay employees is to horde their treasure like Smaug from The Hobbit.
Sorry to destroy your fantasy world, Mr. Liberal, but that isn’t how this works.
You see, businesses rely on profit to survive. Much of the money a company makes goes toward paying the cost of keeping the doors open, leaving a small percentage for the owner to pocket as personal income.
If you raise the minimum wage, you’re adding to the cost of running the business, leaving less money to keep the company open, and less for the owner to live on.
In order to make up for the loss in revenue, a business either has to fire employees, raise prices — like Chipotle — or both.
Companies no longer have the extra cash flow to expand and create new jobs, and since many cut back on staff, unemployment explodes like an atom bomb, not to mention the cost of living increases, which defeats the whole purpose of raising the minimum wage to begin with.
I’m not at all a math person, and even I understand how this all works.
What will it take for liberals to finally grasp these basic, fundamental principles of economics?
Monday, July 6, 2015
On US Economics, Ron Paul Has It Right!
Ron Paul Calls for 'Revolutionary Change in Our Economic Thinking'
Friday, 03 Jul 2015 07:50 PM
Former Texas Rep. Ron Paul called for "a revolutionary change in our economic thinking" to get the nation back on track during an interview with Newsmax TV.
"The government is supposed to provide an environment where the people are energized, but right now, the end stages are sort of what you see in Detroit and Greece," said Paul, who ran for president three times, told "The Hard Line" host Ed Berliner.
"We have to have a revolutionary change in our economic thinking and then the people are the ones that produce the jobs, not the government."
Story continues below video.
Paul was asked about his recent prediction that the stock market's "day of reckoning" is near, and whether Donald Trump — a successful businessman — is the guy to fix it.
"I don't think anybody should be running the economy and that's the whole fallacy of our last hundred years," Paul said.
"[Trump] can't run the economy, he can't create jobs, and he should know that. He can create jobs if he stays in the building industry, but even his industry is going to be in trouble because he might build too many buildings because interest rates are zero," he said.
"It's really down to the essence of getting people to understand good economics, which isn't the most popular thing to do in politics," he said.
"We do not have a free market. Every day the market gets less free, individual liberty gets further eroded, and we expand ourselves further around the world and the only reason this exists is that we have been endowed with the ability to print the reserve currency of the world," he said.
“We have to change a lot of policies. Regulations cannot solve the problems that government creates,” he said.
‘Every time you create one regulation, you create two new problems and it keeps pyramiding. That all has to end and it will end. The question is, what are we going to put in its place?”
Related Stories:
© 2015 Newsmax Finance. All rights reserved."The government is supposed to provide an environment where the people are energized, but right now, the end stages are sort of what you see in Detroit and Greece," said Paul, who ran for president three times, told "The Hard Line" host Ed Berliner.
"We have to have a revolutionary change in our economic thinking and then the people are the ones that produce the jobs, not the government."
Story continues below video.
"I don't think anybody should be running the economy and that's the whole fallacy of our last hundred years," Paul said.
"[Trump] can't run the economy, he can't create jobs, and he should know that. He can create jobs if he stays in the building industry, but even his industry is going to be in trouble because he might build too many buildings because interest rates are zero," he said.
"It's really down to the essence of getting people to understand good economics, which isn't the most popular thing to do in politics," he said.
"We do not have a free market. Every day the market gets less free, individual liberty gets further eroded, and we expand ourselves further around the world and the only reason this exists is that we have been endowed with the ability to print the reserve currency of the world," he said.
“We have to change a lot of policies. Regulations cannot solve the problems that government creates,” he said.
‘Every time you create one regulation, you create two new problems and it keeps pyramiding. That all has to end and it will end. The question is, what are we going to put in its place?”
Related Stories:
Read Latest Breaking News from Newsmax.com http://www.newsmax.com/Finance/StreetTalk/ron-paul-economy-federal-reserve/2015/07/03/id/653412/#ixzz3f8IAUQry
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Thursday, May 29, 2014
Every Day Stores Closing And Housing Market Cratering--Is This Indicative Of An Upcoming Economic Crater?
From SurvivalJoe.net
Are we about to enter yet another economic collapse? All of the facts currently say yes.
Survival Joe | Economics • Predictions
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Economic Collapse 2.0 Has Started and These Facts Prove It
Are we about to enter yet another economic collapse? All of the facts currently say yes.
To get a clearer picture of what the facts are saying, let’s focus on two major indicators of economic health: retail and housing.
Contrary to what mainstream media spin would have you believe, home sales numbers have cratered from the beginning of this year. And they’ve not rebounded. It’s not just a winter sales slump.
What’s more, the recent housing boom was driven by foreigners and Wall Street. Elite banksters are flush with cash from the economic improvers over at the Federal Reserve who are practically handing them money.
And because nobody can get a return on traditional bonds (who wants to clip coupons and eat dog food while earning a paltry 1.25% interest?), Wall Street has been gobbling up houses as rental investment properties.
In fact, it’s estimated that over half of all housing sales went to “hot money” buyers. And now that home prices have soared, the hot money has pulled back and stopped buying.
But they’re desperate to keep the party going. Even sub-prime lender Ditech has risen from the grave to pump out mortgages for people who can’t afford to buy.
Retail sales have sunk into the toilet. Almighty Walmart has stores stuffed with leftover CHRISTMAS inventory.
Retail titans like Sears, Target, and KMart have shuttered stores. One chain folding stores can be chalked up to bad management… three is a disturbing trend.
And more vacant stores and ghost town malls are probably on the way.
Just now, pet supply chain store PetSmart missed earnings. After the announcement, the stock tanked 8.3% in one day.
Even Family Dollar stores are having it tough with slow-moving inventory.
And these are not high-falutin’ businesses catering to snobby rich people.
These stores are for everyday essential items… bread and butter shopping for millions and millions of people.
When companies like these are desperate to slash employees and close stores, it proves that everyday folks just don’t have any money. The next economic collapse can’t be far behind.
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