Minimum Wage Raise
Debate Rounds (5)
1. A minimum wage would force many jobs to be lost. Say for example, if there was a $15 minimum wage, then I will use Dunder Mifflin Paper as an example. They have 15 employees in one branch and they all get paid, say $9/hr. Dunder Mifflin is breaking even and doing ok. But, now that the federal government has stepped in and raised the minimum wage to $15/hr, Dunder Mifflin has had to fire people due to the higher wages. Now Dunder Mifflin can only have 6 people at a branch in order to keep themselves open. Many people lose jobs.
2. If the company is already going to go bankrupt, they will inevitably lose the business, and everybody will lose their job at that business.
3. Net Profit will eventually get lower and lower, for the highly successful businesses. Now let's pretend Dunder Mifflin is a huge national corporation. They now have branches in every state in the US. Now that Bernie's policies have taken place, they have to close down many of their branches, and fire many people. Profit would have drown due to having to pay every employee $6 more an hour. Let's see how much more a year. If Dunder Mifflin had 250 branches, each with 17 employees on average, $15 an hour, with an 8-5 job, with 345 days a year. That would be $135 a day for one employee, $675 a week per employee, and $46980 a year. Let's multiply that times 17, for the employees at the branch. $798,660 a year for one branches employees. Let's see the stats for the former $9/hour. $81 a day, $405 a week, $28107 a year. Now that sounds like a much better wage for a customer service agent or a salesman. It's $477,819 a year per branch. Let's multiply that by 250 branches. $119,450,750 for all of the employees salaries. On a $15/hr salary? $199,665,000. That's an $80 million difference. I don't think any company would want to lose $80 million.
These are my main reasons why an increase in the minimum wage would highly affect our economy.
This will do especially well in urban areas with low income. Costco, a popular growing supermarket, pays their lowest employees 13 dollars an hour, and on average 17 dollars an hour. They still make lots of money with even more surplus than Walmart, and their employees are a lot happier and doesn't have the negative reputation of Walmart. Walmart could easily afford it, as they made 450 billion last year and increasing the minimum wage to 15 would only cost them 43 billion. This article goes further in depth. http://prospect.org...
As for California, where Walmart is closing down, it's simply because California is an expensive place to live and as a result less people will be purchasing products from low end companies like Walmart. If we had a high end supermarket chain in California or made more houses for low and middle class people a minimum wage of fifteen would work there.
Now for my counter argument to your claim:
Not once do you mention the fact as to how people will be buy more products or anything. To you it seems like once the minimum wage is raised within minutes companies go bankrupt. This is obviously not the case. It would take months or years without earning any profit for them to go bankrupt. Here are my calculations:
15x15 is 225 225= amount paid in an hour
225 times 8= 1800 amount paid in 8 hours.
Keep in mind a similar company that exists, staples, made 22 billion in 2014. There are 3856 stores, so 22 billion divided by 3856 is 5,705,394. This means each store has about 5 million dollars. I'm seeing how long it would take without earning any profit to go bankrupt
1800 times 7= 12600 amount paid in a week
12600 times 4= 50400 amount in a month
50400 times 12= 604800 amount in a year.
5,700,000 divided by 604,800 is 9.42
So about nine and a half years for staples (which is just like dunder mifflin) to go bankrupt, and that's not even considering making money. Within a few hours people will be buying more and more because they've earned twice the amount, and companies will profit greatly.
A minimum wage decrease or abolishment would cause something known as deflation, and eventually hyper deflation. Most people know what this means but you probably don't, so here is what it means. It's when people are making less money and the value of the dollar goes up and so one dollar becomes something like ten dollars. You probably will realize that hyper deflation is true and you will most likely defend it saying people will become super rich but the thing is is that all of their money decreases in value. There are countries suffering hyper deflation now, and in the past. During the Great Depression hyper deflation occurred, and people lost their money and if you had 100 dollars it was like being bill gates. According to moneyweb.co, countries currently in deflation are Bulgaria, Croatia, Greece, Poland, Spain and Sweden. Sweden is well known for abolishing minimum wage, Greece and Spain adopted to the euro and their economy collapsed. People will struggle to earn a dollar and America will be a very expensive place to live. The poor will die or emigrate and only rich will live in the country, which means nothing is produced and the economy will collapse again. If that doesn't happen, businesses will earn no money because no one will be able to afford their products and they will drop rapidly in price. Say now a gallon of gas could be 2 dollars. It would probably drop to 25 cents, and 25 cents would be the future equivalent to 2 dollars. Dropping prices are good, but only when the people still have money. Not only that, but any products would have almost no value in international trade and we will be the laughing stock of the world.
Keep this in mind for round 3, don't use ad hominem. Attack me AND defend yourself.
Jbmelk forfeited this round.
1 votes has been placed for this debate.
Vote Placed by Hunts 5 months ago
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Reasons for voting decision: R1 was good for both but in R2 after Pro made a great argument Con just starting going off about socialism. "Yes people would have more money, but tell me in a socialist society, where would most of that money go? To the government." Not only was this claim backless it also had nothing to do with the debate going on. Con also FF last round so I gave convincing to Pro. Pro was also the only one that used a source.
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