from the LA Times today Governor Brown signed a minimum wage law
which is going to raise the minimum wage in California up to ten dollars an hour
by 2016 I thought oh well the Derby was that now
no if not at South screwed up but yeah
now this is interesting on the wage hike is gonna go in two different phases that
the first phase will be
eight dollars an hour will be lifted to nine dollars an hour and 2014
and then it will go up to the full ten dollars an hour on twenty in 2016 yes
january first so
you know it's going to take some time to phase that and of course to give
businesses as they say time to plan and prepare
but naturally there's been a quite a bit over pushed back push back against
this idea of raising the minimum wage I like the governor says when he signed
this bill Governor Brown said that
it was his moral responsibility to give californians a chance to earn a living
wage
look at that I know that sounds like a christian right guy right but it's not
come from the left so when we always forget about the question left they're
out there
say hi there are some people who actually believe that you know that
social justice movement is part over the
the Christian Church or just you know been shunted off to the side or recently
for whatever reason they don't put a news camera in the face any money more
those people
yeah I was also impressed by governor brown here in California again
that he actually talked about income inequality and the change over the last
thirty years
essentially when you look at grafts from the nineteen seventies a
you know wage increases CEO pay middle-class wages
I'm you know Union involvement that all these
graphs have the same inflection point they all start about 1975 1980 and
that's about the time that
reagan went into office and started laying waste to all love the programs
that help to raise the middle class to
be the economic juggernaut that we used to be
yeah I in the United States well he fired patco
rate which with the air traffic controllers they won out his first major
union-busting
bus to the union that sent a chill through union organizing and
you know if you you can chart you can take another chart look at the Union
participate
patient and the income disparity and the less you can participate is the greater
the income disparity
the less love the profits that the my our middle-class
is enjoying an email the thing it used to be that productivity
used to be tied to pay right so
and the more you produce store a value British Beer Company the higher your
wages just how
that is no longer the case that's right they've remained flat sensor basically
the nineteen eighties
that's correct a little bit different and week we've got way more productive
our workers are way more productive than they were
and fact like if we kept the same have put production
rate in the 1980s if we had that today we would have to have twenty million
more workers in our economy
to do all the work but we don't have those forty million because we're more
productive
one that also partner is and how we got to at least the middle class got to the
situation that we did in them
the financial meltdown you know that people's wages were not rising
right and yet we were being I marketed
credit base right credit financing for
for the kind of lifestyle that people have been accustomed to having with
their running away haces in the previous time it so
everybody got into debt was like ok you know 911 happens and George were says go
shopping
you everybody went shopping and we had all this you know great handouts as far
as a
you know people would get 10 and 15 credit card offers in the mail and took
advantage of those opportunities
oh yeah I'm crackers a cultural denied everything can fell apart all at once
and there has not been an increase in wages since then to sort of make up for
right
it's like a that the plutocrats exit financing the plutocrats are sharing
their largesse with the workers
well we got another way for you to make money will I will create a housing
bubble and you can take second mortgages out and you can finance you like that
wat until this all comes crashing down
the government will bail us out you're basically that's where we are right now
yes that's where we are right now
governor brown's is gonna raise that Liam awake by 10 to ten dollars by 2016
of course
there's a push back small business owners hopes have once again been debts
with the stroke of governor brown's panned
said John combat tech executive director of the National Federation
up independent business in California he said the new law only cement California
status
as the worst place to start a business which is a total
why I think that's what Bill Gates I think that's how can something I'll tell
Silicon Valley AZ Alkmaar
is a terrible place to start has lost that's what Tesla went to Texas instead
of silicon valley
away said that they did it right so they're here and that's bull
so the Sobel said so there's no studies every study ever done
by any reputable study %uh group seafood
that raising the minimum wage has no effect
and decrease in jobs okay so it doesn't happen
I like how is in your II highlighted this
because they they say what now at the LA times by the way the LA times they're
not here
they're not sure what what happens but not sure if you raise them away they're
not sure they have to give us both sides
because they're not sure as if the fuckin jury is an idiot on this
as if there's no data at all knowing that it would actually pay people more
it helps the economy because there's more money throughout the economy
actually flowing through the chaos which has been proven that holdover
and over and over again
that that is the case l8 I'm still not sure
so they have to give us both sides to the story so they want to interview some
business leaders
or business owners who were against the minimum wage hike
and here is that this guy name asunder Ahmadis a general manager at Westwind
properties
it's a real estate firm in Burbank Calif and he said he typically hires about
four students over the summer to help out in the warehouse
not anymore now we're gonna raise the minimum wage he says
I i probably hire fewer students next summer
you probably would and you probably this would let some the stuff you needed to
get done not get done
is that what you're telling me yeah I we've got some few happening that I need
to get done but
I could pay it act that way the that is such bullshit
you are going to get the work done that you need to get done
and by the way burger K they've already have higher wages in San Francisco they
have to pay health care their workers they all
they have a date guess what Burger King McDonald's
they're not pulling out of San Francisco know what I needed to say for this trade
so that don't so that's all bullshit cable you can also look at a real-world
example
In N Out Burger which is a very famous franchise privately owned franchise here
in California
and in the West and they actually pay their their employees a living wage
a they treat them well they give them good benefits and they have very low
employee turnover and they have no problem making lots of money in
california
so this is a real world example we have a lot of others were you know maybe
you could say that the CEO might not get quite as high a bonus this year that he
would normally I maybe I have to cut off a couple thousand dollars
but that couple thousand dollars can actually go to employees
who then put that money throughout the economy and actually buying goods and
when your economy is seventy percent consumer spending driven
you need consumers to spend money that's that's how GrowthWorks that's how the
economy actually works that's how
our mature economy works yes an
this is a great this goes to show you who are the job creators the job
creators
are the middle class people who created demand for thinks
right because cook don't forget corporations don't need confidence
they don't need certainty in the market corporations are sitting on five
trillion dollars right now
and a five trillion dollars doesn't give you confidence I suggest dance lessons
they're not investing in the butt here is why wouldn't when corporations higher
gears when they hire
when there is a demand for their products and services that they cannot
meet with the current tomorrow employees
that it's the last thing they want to do is hire people
but they will if the demand for the products and services are high enough
and that's the end who creates demand for products and services
workers middle class people with passion their pockets and that's why the hiring
isn't happening the way it's supposed to
because the people who create them and don't have the money in their pockets to
create the debate and
all the bodies being quoted at the top up the food chain
the plutocrats have all the money given to people about as a heads as Secretary
Paulson was on
press to meet with David Gregory last week I and they were talking about and I
i turn my wife is said that Saint Paul sinisa be that chairman at goldman sachs
yep that he was a secretary at the Treasury under george bush redesigned
our program he makes seven hundred million dollars
in the stock market when he left scolded sex seven hundred million dollars one
got
now you know where that money goes that doesn't go the economy that sitting
offshore somewhere that sitting in his pocket
that's not being invested that's not being spent that dead money
and that's what's wrong with concentration money at the top it's dead
money
they don't create jobs they don't reinvested you don't spend that money is
when you give the money to the workers who created that
that's when they con- it helps everybody go watch the band TED talk
right then right if you know what I wanted talk in the whole history of
ted's got banned
it was a guy who said the exact same thing he's a millionaire who said you
know
I I don't create jobs he is a I can only buy certain Monique Arce only by three
or four pairs of jeans a year
he was so that's bullshit I'm gonna create jobs will create jobs when there
is demand for a product
and then we show up and we start a business or company to meet that demand
and so go I look up at been to talk so this goes perfectly exact with the next
story
which is Walmart guess what walk to Walmart lately
has been cutting that so they have the worst business practices right for the
employees they
overwork you underpay you don't give you benefits
and it turns out that's not good for business
because they just found out that a wal-mart sales have been
wondering ever since they decided to cut back on their full-time employees and
higher temps
their sales have been plummeting yeah they have an overflow love inventory a
lot of business news coming out now about how wal-mart
has inventories stacking up in their stores
they have disabled shell because they don't have enough workers and they don't
have enough people who can afford to buy with their selling
so they're actually cutting orders to quarters ahead
which in business terms when you're talking about you know solid goods that
people have to ship by Sep
cutting your orders and your inventory to quarters in advance is really unusual
yet and that's a kind ever you know with the business articles that I was reading
on this
said that this was a very scary kind of idea for a lot of the analysts they were
really shocked that wal-mart was going to
to go to this level of cutbacks on our inventory
well they happen to better people Reuters did a baller
Reuters this survey a fifty to Walmart stores
and they found that most of those stores were hiring
only temp workers so that they don't have to pay any kind of benefits
they can let go at will and am not have to have any sort of
issues when it comes to employment fairness or anything like that because
temp workers are
I think under a different so yes I love employment guidelines
so it turns out that this business model up hiring temp workers
providing absolutely no support for the people who generate your profits their
workers in your store this is the number one retailer by the way
remember that number one retailer I
and there who exclusively to workers right so this is
so it turns out not only is the walruses from think progress not only is the
Walmart model bad for workers
and bad for business it's also terrible for the taxpayer now we know this right
because what happens they don't pay them enough they don't provide the benefits
those people still get sick and they still have to eat so they apply for food
stamps and they played for medicaid
and it's been stabbed she thought that for each store
each Walmart store the taxpayers have to support than 1.75 million dollars
in public benefits to their the 10 wal-mart Stores employees
almost two million dollars a year in public benefits taxpayers okay or are
paying
number one retailer making $80 billion dollars a year
yeah and you know and it doesn't have to be this way Costco is a
doesn't family I warehouse store and they have a 19 percent increase in their
profits over the last corner
over Walmart by Walmart say profits a and what and a worker they pay their
workers twenty one dollars twenty one dollars in 96 cents an hour that's the
average worker wage
way away now that roe forty percent more than Walmart employees make any business
is booming right and where did they put it is that they generate more revenue
and profit per worker
in spite of paying them or how does that work
world moonlight is that like magic you know how do they do
it might be that because they pay their workers more and their workers are able
to actually participate in the economy and they don't have high turnover
it actually shows that if you treat your workers well you might actually have a
better business
you workers were Carter its concept