How the minimum wage translates
Aug 4 2015
Anthony Puzder, CEO of CKE Restaurants, the parent company of Hardee's and others, provides some data to work with in this Wall Street Journal op-ed. His typical franchised restaurant employs 25 people and earns about $100,000 a year in pretax profit—about 8% of the restaurant’s $1.2 million annual sales. To the 24 employees other than the manager, he attributes 75% of the profit about $3,125 an employee. If minimum-wage crew members working 25 hours a week received a 40% raise, they would earn an additional $3,705 a year. That is $580 more than what the employee contributes to the restaurant’s profits.
First, let's point out that the $3,125 works out to be 52 weeks; no one gets time off, apparently. At minimum wage Mr.Puzder's part-timers make $9,425 a year. At a 40% increase (to $10.15 an hour) that would become $13,195. One can only hope that they have second or third jobs. Even at full-time they'd only earn $21,200.
These are unlivable wage rates that force people into public assistance. So what Mr. Puzder is really telling us is that we're fooling ourselves to think cheap food is a bargain, because we're paying the rest of its true and hidden cost to the government. Comment?
50 countries are plotting in secret
Jun 30 2014
In February, in “Corporations Press for Power Grab in Pacific Trade Pact”, we reported details of the Trans-Pacific Partnership (TPP), the most wide-reaching trade pact in history, the terms of which have been decided in secret. We showed that only 5 of its 29 covenants are concerned with typical trade rules such as tariffs and quotas and that the rest are designed to hand multinational corporations powers greater than held by their own…
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We said it before: A tax would restore market sanity
Apr 15 2014
“The United States stock market, the most iconic market in global capitalism, is rigged”, said Michael Lewis on “60 Minutes”. The perennially best-selling author was promoted his latest book, “Flash Boys”, which tackles the subject of high-speed trading.
It’s a topic we dealt with a year and a half ago in this article, when inadequately vetted code at trading firms or exchanges had caused a trio of market plunges such as the 2010 “Flash Crash” in which a market drop…
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One high, the other low. Congress never makes the connection
Feb 24 2013
Food stamps come in for particular ire from some. Over 46 million Americans pay for their groceries with federal food stamps. Half of the mouths that food stamps feed belong to children. It is a 40-year-old program (renamed “Supplemental Nutrition Assistance Program” or SNAP) but only in recent years has it ballooned to one in seven people, currently costing taxpayers $72 billion a year.
The rapid increase owes partly to the weak economy that has followed the financial crisis of 2008, but also to a loosening of the eligibility rules to…
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