About minimum wage

[Silver]

The irony in food sales is that one can get the same exact product from a cheaper source, except that people are proud and would rather waste their money in order for the image of shopping somewhere fancier.

[vorlon13]

BTW, the IRS is looking into changing the inheritance tax in regards to farmland. And not, IMO, in a good way.

Increasing taxes in that regard will result in more siblings having to sell their family farms (or selling a greater % of it) in order to pay the increased inheritance tax.

In a steady state environment in regards to that tax, the amount of farm income siphoned off by the government is factored into the value of farmland via how much is brought into exchange on a per capita basis. A sudden jolt, if you will, in the amount of money taken out of the farming segment via a big jump in that tax will result in a jump in the amount of farmland changing hands over the next few years as more children will be forced to sell. And since there is more farmland for sale, AND the government is taking more money out the farm segment of the economy, farmland will take a substantial hit in regards to its value.

And then there is an apparently unnoticed unintended consequence; many (most?) farmers use their land as collateral on loans to finance their inputs for planting their crops in the subsequent years. A sudden drop in the value of that collateral will definitely put more farmers out of business as bankers will not endanger their bottom lines by loaning money with out sufficient collateral.

So, more farmers are out of the farm segment of the economy, and with their land now useless to them as it is insufficiently valuable to secure a loan for seed and fertilizer, it will be put up for sale. Ooops! It's not a good time to be selling farm land anyhow because the IRS just changed the inheritance tax calculation. Oh, so sad, too bad !!


Now, while this is good news for me, since I am looking to expand, some of my neighbors are going to take it in the shorts over this matter. And upon my demise, my turn comes up too.


So, while these restaurant employees are looking at pretty good odds for a raise, my neighbors at least (maybe me too if I'm not smart enough) are looking at a VERY bad couple of years to come.

So how many farmers can all the urban McDonalds employ behind their cash registers ?

[Silver]

Fuck the IRS.

[vorlon13]

Well, it's imperative to fuck them FIRST.

And that ain't looking like it's going to happen by 12/31/16.

[Silver]

Unless you have the money to make them forget that you fucked them.

There is a reason why rich people can evade taxes and still not go to prison.

[Aractus]

No...this isn't what happens and that's what I want to know, why doesn't it

It's simple economics really: if you raise the cost of production you decrease the profit margins for those that do no work (investors for example) in favour of those who do the work. But you also increase the competition in the market, and increased competition helps the market to thrive. So to put it simply: yes raising the cost of production can increase the cost of the product or service, however that burden is shared and somewhat alleviated by the reduction in profit for shareholders and others "at the top".

[robvalue]

Does America actually have a legal minimum wage? Last I heard it didn't. Maybe I heard wrong.

[BrokenQuill92]

Does America actually have a legal minimum wage? Last I heard it didn't. Maybe I heard wrong.

I varies by state but (and correct me if I'm wrong) I believe federal lowest limits is $7.50

[BrokenQuill92]

Does America actually have a legal minimum wage? Last I heard it didn't. Maybe I heard wrong.

Oh and it also has subminimum wages
I varies by state but (and correct me if I'm wrong) I believe federal lowest limits is $7.50

https://youtu.be/WXJqWPIaDrQ

[Thumpalumpacus]

Does America actually have a legal minimum wage? Last I heard it didn't. Maybe I heard wrong.

Yes, we do: $7.25/hr per Federal law, with states welcome to impose a higher minimum but forbidden to go below it.