JC Political Thread - For All Things Political Part 2

[J_D 2.0]

I have no issue raising the minimum wage, just don’t cry poor when business inflates prices to reflect it.

It’s a difficult conundrum. Most of the businesses paying minimum wages (or close to it) have high labour input costs so raising the minimum wage has a disproportionate impact on those businesses who rely on labour the most.

A better idea would be for the government to sufficiently tax companies and people who have low labour input costs and redistribute that money to those on the lowest incomes.

This will have to happen at some point or we will end up with Elysium. Currently 100% of the advantages of lower labour costs goes to capital by definition so where do we end up when AI and robots do everything and people no longer have a use to capital?

Unless governments start properly taxing capital to support labour (people) then we will continue to move towards a dystopia where a few rich people with all the capital own everything and everyone else is destitute.

https://en.wikipedia.org/wiki/Elysium_(film)

 

[OldBomb]

Yeah right. This is what happens when I try a simple google search on Chrome with my VPN turned on

 

[J_D 2.0]

Are they? I would've thought rich people building mansions puts less stress on the contractors to pay their employees, so they don't have to raise their prices.

Rich people building mansions are a demand on the system all the same.

Costs of materials go up for everyone else and contractors would put their labour prices up for everyone else if there’s plenty of mansions to be built by rich people.

Why would they do your job for $ when there are heaps of rich people willing to pay $$$$? You will now pay $$$$ if you want their attention.

 

[Immortality]

There is a builder down the road from me, I asked him to do a job for me but he's not interested, he only does high end work/renovations for people with lots of money and my smallish job isn't worth the time or effort for him.

 

[shane_3800]

And where does that bonus money come from?

The extra profits that didn't exist the year before.

 

[shane_3800]

Rich people building mansions are a demand on the system all the same.

Costs of materials go up for everyone else and contractors would put their labour prices up for everyone else if there’s plenty of mansions to be built by rich people.

Why would they do your job for $ when there are heaps of rich people willing to pay $$$$? You will now pay $$$$ if you want their attention.

Fair point, but the mansion contractor would be busy building McMansions, while the cheaper contractor would be able to get work instead of competing with the mansion builder, who is now busy building mansions.

 

[Immortality]

The extra profits that didn't exist the year before.

It's still net profit less $24 million dollars. You also can't say that the profit earned is down to just the CEO because it's not. So no matter how you look at it, it's $24 million dollars that could have gone to share holders dividend or re-invested in the company or staff wage increases (you know, the people that do the actual work).

Fair point, but the mansion contractor would be busy building McMansions, while the cheaper contractor would be able to get work instead of competing with the mansion builder, who is now busy building mansions.

Mcmansions also take a lot more building materials so less to go to other builds. You simply can't look at Mcmansions in isolation.

From what I hear the building industry is falling over in Aussie, not a good time to be a builder or developer.

 

[marty351]

"Don Poorleone" has been viral memewise.

 

[AirStrike]

There is a builder down the road from me, I asked him to do a job for me but he's not interested, he only does high end work/renovations for people with lots of money and my smallish job isn't worth the time or effort for him.

And? I don't price small ****, not worth the headache for the minimal profit.
Plenty of handymen happy to do small jobs.

 

[shane_3800]

It's still net profit less $24 million dollars. You also can't say that the profit earned is down to just the CEO because it's not. So no matter how you look at it, it's $24 million dollars that could have gone to share holders dividend or re-invested in the company or staff wage increases (you know, the people that do the actual work).



Mcmansions also take a lot more building materials so less to go to other builds. You simply can't look at Mcmansions in isolation.

From what I hear the building industry is falling over in Aussie, not a good time to be a builder or developer.

Yea but the CEO is employed to push profits up, if you hire a cleaner, your profits might stay steady or fall, but the CEO is there to push them up. So if he gets and increase, as part of his job shouldn't he be entitled to get a bonus for accomplishing this task?