Small businesses

paindonthurt

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Jun 27, 2009
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All restaurants work off a similar model

As a percent of sales
25% ish labor including salaried managers gross taxes etc
35% ish cogs
5-10% ish rent
15% ish overhead
20% ish profit

mcdonalds averaging 2,700,000 in sales is making around $500k profit before taxes

let’s call it $375,000 after taxes

it cost between 1 mil and 2 mil to open one

let’s call it $1.5

that’s roughly a 4 year payback period and considering the volatility of restaurants that’s about right

Does a chef at a fancy restaurant make more than minimum wage? Duh but he is also WAY more skilled than a McDonald’s cook.

News flash - most employees at McDonald’s make 20% plus over minimum wage.

Many make double minimum wage.

Career path if you want to work in a restaurant and make a enough money to pay rent?

Start your job. Show up every day you are scheduled on time and work hard. Get a second job. Working 55 hrs a week isn’t that big of a deal for lots of middle class Americans.

Learn all of the positions.
Volunteer for extra shifts.
Be nice to customers.
Follow instructions.

Start looking for a nicer restaurant where you can show and communicate what you’ve done.

Basically a road map to success in life in general.

now you know
 

jethreauxdawg

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Dec 20, 2010
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Jobs like working at McDonald’s are supposed to be training for better jobs. Government getting involved with how much employers have to pay the employees will end up hurting the employees the government pretends they are trying to help. Politicians know this, but they know explaining things and preaching personal responsibility doesn’t get votes from people who don’t want to hear that, and there are more of those people.
 

paindonthurt

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Jun 27, 2009
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Jobs like working at McDonald’s are supposed to be training for better jobs. Government getting involved with how much employers have to pay the employees will end up hurting the employees the government pretends they are trying to help. Politicians know this, but they know explaining things and preaching personal responsibility doesn’t get votes from people who don’t want to hear that, and there are more of those people.
Correct and there are people who work at McDonald’s and make a good living relative to a lot of people.

And every person at McDonald’s has a better standard of living compared to the majority of the rest of the world.
 

horshack.sixpack

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Oct 30, 2012
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Jobs like working at McDonald’s are supposed to be training for better jobs. Government getting involved with how much employers have to pay the employees will end up hurting the employees the government pretends they are trying to help. Politicians know this, but they know explaining things and preaching personal responsibility doesn’t get votes from people who don’t want to hear that, and there are more of those people.
There are no easy answers. Not everyone is capable of doing more/better (mental or physical limitations). Turns out nobody has ever actually pulled themselves up by their bootstraps. All of this regulation has a history. If we hadn't had child labor, we wouldn't have child labor laws. If we hadn't worked people to death, we wouldn't have a standard 40 hour work week and labor unions would have never been needed. Capitalism is the best system out there, but without guardrails, often in the form of government regulation, it has proven repeatedly that it will incentivize companies to prioritize profits over everything and take as much as they can from workers, the environment, the government, etc. to do so. Again, no easy answers, despite our two parties trying to package all issues into neat soundbites...
 

greenbean.sixpack

Well-known member
Oct 6, 2012
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All restaurants work off a similar model

As a percent of sales
25% ish labor including salaried managers gross taxes etc
35% ish cogs
5-10% ish rent
15% ish overhead
20% ish profit

mcdonalds averaging 2,700,000 in sales is making around $500k profit before taxes

let’s call it $375,000 after taxes

it cost between 1 mil and 2 mil to open one

let’s call it $1.5

that’s roughly a 4 year payback period and considering the volatility of restaurants that’s about right

Does a chef at a fancy restaurant make more than minimum wage? Duh but he is also WAY more skilled than a McDonald’s cook.

News flash - most employees at McDonald’s make 20% plus over minimum wage.

Many make double minimum wage.

Career path if you want to work in a restaurant and make a enough money to pay rent?

Start your job. Show up every day you are scheduled on time and work hard. Get a second job. Working 55 hrs a week isn’t that big of a deal for lots of middle class Americans.

Learn all of the positions.
Volunteer for extra shifts.
Be nice to customers.
Follow instructions.

Start looking for a nicer restaurant where you can show and communicate what you’ve done.

Basically a road map to success in life in general.

now you know
I'm a deputy division director with about 400 employees (I'm late 50s, retired military). I know every generation says the next generation is lazy, etc., but the young people we are hiring are especially unmotivated, unconcerned and have no concept of "ownership" of a job. We pay very well. I am concerned we are reaching critical mass. I've only got 25 years left on this earth, but I'm concerned about the world my grandkids will live in.

The Office Boomer GIF by MOODMAN
 

PirateBay

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Jan 9, 2020
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I don’t know what part of the state you’re in, but good luck hiring anyone for under $16-$18 an hour in the Tupelo area.

20% over minimum wage is $8.70 an hour, and you just can’t live on that at this point in time. Even at 55 hours a week, that isn’t enough.
 

paindonthurt

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Jun 27, 2009
9,529
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There are no easy answers. Not everyone is capable of doing more/better (mental or physical limitations). Turns out nobody has ever actually pulled themselves up by their bootstraps. All of this regulation has a history. If we hadn't had child labor, we wouldn't have child labor laws. If we hadn't worked people to death, we wouldn't have a standard 40 hour work week and labor unions would have never been needed. Capitalism is the best system out there, but without guardrails, often in the form of government regulation, it has proven repeatedly that it will incentivize companies to prioritize profits over everything and take as much as they can from workers, the environment, the government, etc. to do so. Again, no easy answers, despite our two parties trying to package all issues into neat soundbites...
Let me tell you what isn’t an answer.

Trying to fit a square peg in a round hole.

if you force labor costs up, you’ll also force prices up so $20/hr will still be “not a living wage”.

Not every person is entitled to the same things in life.

if that’s the case I want what nfl, nba and mlb athletes have.
 

paindonthurt

Well-known member
Jun 27, 2009
9,529
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I'm a deputy division director with about 400 employees (I'm late 50s, retired military). I know every generation says the next generation is lazy, etc., but the young people we are hiring are especially unmotivated, unconcerned and have no concept of "ownership" of a job. We pay very well. I am concerned we are reaching critical mass. I've only got 25 years left on this earth, but I'm concerned about the world my grandkids will live in.

The Office Boomer GIF by MOODMAN
All you can do is make sure your grandchildren are part of the solution and not the problem.
 

paindonthurt

Well-known member
Jun 27, 2009
9,529
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I don’t know what part of the state you’re in, but good luck hiring anyone for under $16-$18 an hour in the Tupelo area.

20% over minimum wage is $8.70 an hour, and you just can’t live on that at this point in time. Even at 55 hours a week, that isn’t enough.
Yeah so get a better job. There are industries all over this country paying $20 to $35 per hr who can’t find decent labor.

decent labor? Showing up daily and working hard and following instructions.
 

WilCoDawg

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Sep 6, 2012
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Jobs like working at McDonald’s are supposed to be training for better jobs. Government getting involved with how much employers have to pay the employees will end up hurting the employees the government pretends they are trying to help. Politicians know this, but they know explaining things and preaching personal responsibility doesn’t get votes from people who don’t want to hear that, and there are more of those people.
Two of our local McDonald’s have almost entirely hispanic employees. They are both the best McDonald’s I’ve ever been to. Happy, courteous, and correct orders 96% of the time. It’s like CFA minus the long (yet quick) drive-thru line.

It sort of makes me think that some cultures don’t mind working at McDonald’s.
 

paindonthurt

Well-known member
Jun 27, 2009
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Two of our local McDonald’s have almost entirely hispanic employees. They are both the best McDonald’s I’ve ever been to. Happy, courteous, and correct orders 96% of the time. It’s like CFA minus the long (yet quick) drive-thru line.

It sort of makes me think that some cultures don’t mind working at McDonald’s.
And I bet you they get paid more than at crappier McDonald’s.

I bet they are also living fine off their wages and probably sending a significant portion back to family in Mexico.
 

Seinfeld

Well-known member
Nov 30, 2006
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There are no easy answers. Not everyone is capable of doing more/better (mental or physical limitations). Turns out nobody has ever actually pulled themselves up by their bootstraps. All of this regulation has a history. If we hadn't had child labor, we wouldn't have child labor laws. If we hadn't worked people to death, we wouldn't have a standard 40 hour work week and labor unions would have never been needed. Capitalism is the best system out there, but without guardrails, often in the form of government regulation, it has proven repeatedly that it will incentivize companies to prioritize profits over everything and take as much as they can from workers, the environment, the government, etc. to do so. Again, no easy answers, despite our two parties trying to package all issues into neat soundbites...
Agree with the first two lines. So why not focus our support programs on the incapable (mental/physical limitations) rather than casting a net that captures the other 99.5% that are entirely capable?
 

Seinfeld

Well-known member
Nov 30, 2006
9,542
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I'm a deputy division director with about 400 employees (I'm late 50s, retired military). I know every generation says the next generation is lazy, etc., but the young people we are hiring are especially unmotivated, unconcerned and have no concept of "ownership" of a job. We pay very well. I am concerned we are reaching critical mass. I've only got 25 years left on this earth, but I'm concerned about the world my grandkids will live in.

The Office Boomer GIF by MOODMAN
We've got a related, but different problem in my line of work. Our problem isn't so much laziness as it is young, fresh outta college kids that think they're ready to be campus managers and directors at age 25. Then, when they get "passed over" for a position by a more experienced and much more qualified individual, rather than listening to their mentors, it's "17 it, I'll go work for someone that appreciates me".

We've lost so many incredibly talented kids over the last ten years, and while I'd certainly say that some of those instances were the company's mistake, I honestly think the majority were unavoidable. There was just no convincing many of them to get 3-5 more years of experience under their belts and then see where the chips fall.
 
Aug 22, 2012
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Man, so many business experts on here and not a single one of you has pointed out that money in the hands of the working poor gets spent in local communities, increasing gross demand, which allows for companies to pay their workers more without losing out on gross profit even if their margins shrink a little bit.

Apologies for starting this comment off with a soft insult, but it really feels like everyone on here only cares about businesses making as much profit as possible being the one constant that cannot be sacrificed in this equation you are trying to solve. You have to think one step further. This kind of short term, maximize profits for those not actually doing the work mindset is how we got to where we are where we have the worst economic inequality in this country since the great depression.

Quit idolizing billionaires and enabling their lifestyles and start supporting your fellow working man. Unless one of y'all on here is that prick at Peavey or you own a factory of some kind, this means YOU!

Semi related note: Currently, there's a labor shortage. We're at sub 3% unemployment (5% is considered balanced) with more jobs sitting unoccupied than we know what to do with, so the cost of labor will go up to fill those slots. Also, about a million extra people died recently. Top that off with stupid, short sighted, and xenophobic border policies and we're shooting ourselves in the foot for solutions to this problem.
 

horshack.sixpack

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Oct 30, 2012
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Agree with the first two lines. So why not focus our support programs on the incapable (mental/physical limitations) rather than casting a net that captures the other 99.5% that are entirely capable?
Go volunteer with an organization that helps the working poor. Get to know actual people who are in that situation and do what you can to help someone. Stop viewing "them" as some collective of same people with same issues with same solutions. Their lives are as complex as yours, with fewer opportunities to make them better, mostly through no fault of theirs.
 
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horshack.sixpack

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Oct 30, 2012
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Man, so many business experts on here and not a single one of you has pointed out that money in the hands of the working poor gets spent in local communities, increasing gross demand, which allows for companies to pay their workers more without losing out on gross profit even if their margins shrink a little bit.

Apologies for starting this comment off with a soft insult, but it really feels like everyone on here only cares about businesses making as much profit as possible being the one constant that cannot be sacrificed in this equation you are trying to solve. You have to think one step further. This kind of short term, maximize profits for those not actually doing the work mindset is how we got to where we are where we have the worst economic inequality in this country since the great depression.

Quit idolizing billionaires and enabling their lifestyles and start supporting your fellow working man. Unless one of y'all on here is that prick at Peavey or you own a factory of some kind, this means YOU!

Semi related note: Currently, there's a labor shortage. We're at sub 3% unemployment (5% is considered balanced) with more jobs sitting unoccupied than we know what to do with, so the cost of labor will go up to fill those slots. Also, about a million extra people died recently. Top that off with stupid, short sighted, and xenophobic border policies and we're shooting ourselves in the foot for solutions to this problem.
Honestly, I suspect that most people who talk about what all "they" are getting and how much "they" are mooching off the system, don't personally know many, if any, of those "theys". I get it. I used to be the same way until I started spending time with homeless, inner city poor, and working poor. Too many prideful people on here with smug attitudes that they are way better and could never end up like "those people". I see a lot of "them" on the streets too. Straight from it'll never be me to I can't believe this happened in the blink of an illness, or layoff, or arrest, or accident.
 

paindonthurt

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Jun 27, 2009
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Man, so many business experts on here and not a single one of you has pointed out that money in the hands of the working poor gets spent in local communities, increasing gross demand, which allows for companies to pay their workers more without losing out on gross profit even if their margins shrink a little bit.

Apologies for starting this comment off with a soft insult, but it really feels like everyone on here only cares about businesses making as much profit as possible being the one constant that cannot be sacrificed in this equation you are trying to solve. You have to think one step further. This kind of short term, maximize profits for those not actually doing the work mindset is how we got to where we are where we have the worst economic inequality in this country since the great depression.

Quit idolizing billionaires and enabling their lifestyles and start supporting your fellow working man. Unless one of y'all on here is that prick at Peavey or you own a factory of some kind, this means YOU!

Semi related note: Currently, there's a labor shortage. We're at sub 3% unemployment (5% is considered balanced) with more jobs sitting unoccupied than we know what to do with, so the cost of labor will go up to fill those slots. Also, about a million extra people died recently. Top that off with stupid, short sighted, and xenophobic border policies and we're shooting ourselves in the foot for solutions to this problem.
You can’t insult us bc you are stupid.

Of course we know money in the hands of poorer people gets spent with small businesses in the community.

We very much differ in opinion and intelligence regarding how those poor people should get that money.

You think it should be given to them. I think they should work for it.

If they are working hard at a fast food restaurant, show up on time and daily, listen and follow instructions and literally aren’t dumb/mentally challenged, they can go find a higher paying job. There are opportunities all over this country where labor is short.

So why are they still 17ing around with the mean restaurant business owners?

A: either they like it
B: they aren’t capable of more
C: you fill in the blank?

but they have choices. They are choosing this life. Why?
 

OG Goat Holder

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Sep 30, 2022
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Apologies for starting this comment off with a soft insult, but it really feels like everyone on here only cares about businesses making as much profit as possible being the one constant that cannot be sacrificed in this equation you are trying to solve. You have to think one step further. This kind of short term, maximize profits for those not actually doing the work mindset is how we got to where we are where we have the worst economic inequality in this country since the great depression.

Quit idolizing billionaires and enabling their lifestyles and start supporting your fellow working man. Unless one of y'all on here is that prick at Peavey or you own a factory of some kind, this means YOU!
I've often wondered about this. First off - good for the billionaires. They earned their money, however they got it, I'm not here to judge. But I also know you can only do so much with that level of money. And they LOVE to brag about it. So of course other people get jealous and want a piece of it. And this country spends so much money on just absolute stupid ****.

All that to say - it really is hard for me to look at billionaires and NOT say, "You know, you really SHOULD be paying more".

I mean people make all this money, yet they still ***** at others making much less. Look at college football coaches right now. Do the players deserve the money some of them get? Probably not. But the coaches bitching about it can't seem to realize that they don't deserve 8M a year either.

I mean look at the OP. Pretty obvious he runs a restaurant or at least a business. He's concerned only with his profit. Seems like the labor is what it is, you can't change that. Charge more and hope people pay it, or change businesses. I mean he is telling people to change, why can't he?
 
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paindonthurt

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Jun 27, 2009
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I've often wondered about this. First off - good for the billionaires. They earned their money, however they got it, I'm not here to judge. But I also know you can only do so much with that level of money. And they LOVE to brag about it. So of course other people get jealous and want a piece of it. And this country spends so much money on just absolute stupid ****.

All that to say - it really is hard for me to look at billionaires and NOT say, "You know, you really SHOULD be paying more".

I mean people make all this money, yet they still ***** at others making much less. Look at college football coaches right now. Do the players deserve the money some of them get? Probably not. But the coaches bitching about it can't seem to realize that they don't deserve 8M a year either.

I mean look at the OP. Pretty obvious he runs a restaurant or at least a business. He's concerned only with his profit. Seems like the labor is what it is, you can't change that. Charge more and hope people pay it, or change businesses. I mean he is telling people to change, why can't he?
I don’t own a restaurant or a business but I have.

I do currently work for business owners and I have choices to make daily.
I’ve got a degree jn mechanical engineering and an MBA. The company I work for reports sales and net income to the employees quarterly.
I don’t ***** when my division reports 30 million in sales and 17% in net income.

What do I do? I keep up with what I bring to the table to help make that happen and when I see profit PERCENTAGE grow, I ask for more money or more time off or a combination of the 2.

if I don’t get those things, I either accept it or see what other opportunities might be out there.
 

Maroon Eagle

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May 24, 2006
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Semi related note: Currently, there's a labor shortage. We're at sub 3% unemployment (5% is considered balanced) with more jobs sitting unoccupied than we know what to do with, so the cost of labor will go up to fill those slots. Also, about a million extra people died recently. Top that off with stupid, short sighted, and xenophobic border policies and we're shooting ourselves in the foot for solutions to this problem.
Some good commentary here - especially in your last paragraph.

I’d add that more people also retired than expected - some a few years earlier than when they normally would have - in the past three years.
 

Thumbs Down

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Sep 29, 2022
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Man, so many business experts on here and not a single one of you has pointed out that money in the hands of the working poor gets spent in local communities, increasing gross demand, which allows for companies to pay their workers more without losing out on gross profit even if their margins shrink a little bit.

Apologies for starting this comment off with a soft insult, but it really feels like everyone on here only cares about businesses making as much profit as possible being the one constant that cannot be sacrificed in this equation you are trying to solve. You have to think one step further. This kind of short term, maximize profits for those not actually doing the work mindset is how we got to where we are where we have the worst economic inequality in this country since the great depression.

Quit idolizing billionaires and enabling their lifestyles and start supporting your fellow working man. Unless one of y'all on here is that prick at Peavey or you own a factory of some kind, this means YOU!

Semi related note: Currently, there's a labor shortage. We're at sub 3% unemployment (5% is considered balanced) with more jobs sitting unoccupied than we know what to do with, so the cost of labor will go up to fill those slots. Also, about a million extra people died recently. Top that off with stupid, short sighted, and xenophobic border policies and we're shooting ourselves in the foot for solutions to this problem.
New York Yankees Reaction GIF by MLB
 

Cantdoitsal

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Sep 26, 2022
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I've often wondered about this. First off - good for the billionaires. They earned their money, however they got it, I'm not here to judge. But I also know you can only do so much with that level of money. And they LOVE to brag about it. So of course other people get jealous and want a piece of it. And this country spends so much money on just absolute stupid ****.

All that to say - it really is hard for me to look at billionaires and NOT say, "You know, you really SHOULD be paying more".

I mean people make all this money, yet they still ***** at others making much less. Look at college football coaches right now. Do the players deserve the money some of them get? Probably not. But the coaches bitching about it can't seem to realize that they don't deserve 8M a year either.

I mean look at the OP. Pretty obvious he runs a restaurant or at least a business. He's concerned only with his profit. Seems like the labor is what it is, you can't change that. Charge more and hope people pay it, or change businesses. I mean he is telling people to change, why can't he?
Who are you to judge "what level of money" one should have or what they do with it? So what if they brag about it? Most don't BTW. The top 10% paid 71% of total federal income taxes yet those earnings were only 48% of income earned in 2018 while the bottom 50% paid ZERO. So why should THEY be paying more when our corrupt government pisses it away with impunity? What YOU think about someone getting "overpaid" is none of your damn business because that's between the employee and the employer. Value is based on what's someone's willing to pay, not an outside committee deciding. So the guy running a business has to raise his prices to pay wages YOU agree with even if it drives the owner into bankruptcy? Because YOU want it that way?
 

RocketDawg

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Two of our local McDonald’s have almost entirely hispanic employees. They are both the best McDonald’s I’ve ever been to. Happy, courteous, and correct orders 96% of the time. It’s like CFA minus the long (yet quick) drive-thru line.

It sort of makes me think that some cultures don’t mind working at McDonald’s.

All the Five Guys here have virtually all Hispanic workers. Don't know how much they pay, but there's a tip jar for cash and a spot to add a tip for charge card. Could be they make $2.13 like most waiters/waitresses do. But all they do is take your order; you have to pick it up yourself when it's ready.

McDonald's here has mostly blacks and a couple of older white women. There's a sign on the drivethru at the location nearest me that says starting is $13/hr, openers and closers $15, and store managers up to $76K/year.

I've always thought of fast food places as being a spot for high school kids and some college kids to get a start in employment, not a career place (except, of course, in corporate).
 

Hot Rock

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There was a time in this land that gas station worker could afford housing on one salary, now? It takes two to pay rent. Just look at the disparity of income from the worker to the CEO from the 50’s to now. It should make you sick.
 
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Cantdoitsal

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There was a time in this land that gas station worker could afford housing on one salary, now? It takes two to pay rent. Just look at the disparity of income from the worker to the CEO from the 50’s to now. It should make you sick.
Corporations are not just throwing money away on top notch CEO's as they have much bigger responsibilities today than back in the 50's. Shareholders see their value and profits these unique individuals bring in. CEO pay has ZERO impact on what those at the bottom make..
 

HRMSU

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Go volunteer with an organization that helps the working poor. Get to know actual people who are in that situation and do what you can to help someone. Stop viewing "them" as some collective of same people with same issues with same solutions. Their lives are as complex as yours, with fewer opportunities to make them better, mostly through no fault of theirs.

Everyone has the potential to better themselves whatever better means to them.

Now, I don't believe everyone believes that but I do believe the majority of those who put in the work to better themselves believe it.
 

horshack.sixpack

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Let me tell you what isn’t an answer.

Trying to fit a square peg in a round hole.

if you force labor costs up, you’ll also force prices up so $20/hr will still be “not a living wage”.

Not every person is entitled to the same things in life.

if that’s the case I want what nfl, nba and mlb athletes have.
I think you may have proved one of my points. You aren’t capable of doing an nfl, nba or mlb job. If you were, you would do it. If the difference in what you make in your job and one of those was the difference in feeding your family or not, you’d be screwed.
 

horshack.sixpack

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Nope, nope, nope. To dismiss foresight and accountability is folly.
What does that have to do with my post? If we all had more foresight we could make the NFL? Just a little more responsibility and I’m balling with Lebron?
 

turkish

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What does that have to do with my post? If we all had more foresight we could make the NFL? Just a little more responsibility and I’m balling with Lebron?
Your income not being as high as others hasn’t put your family’s safety at risk. I’d say you’ve shown at least some foresight in that regard. It’s not dumb luck.

Foresight allows one NOT to depend on a paycheck he is at risk of losing.

I feel firmly that lack of accountability is an underlying issue.
 
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horshack.sixpack

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Your income not being as high as others hasn’t put your family’s safety at risk. I’d say you’ve shown at least some foresight in that regard. It’s not dumb luck.

Foresight allows one NOT to depend on a paycheck he is at risk of losing.

I feel firmly that lack of accountability is an underlying issue.
That will not make up for lack of mental and/or physical capability. That is the point. Not that accountability doesn’t matter. I never suggested that.
 

paindonthurt

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Jun 27, 2009
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I think you may have proved one of my points. You aren’t capable of doing an nfl, nba or mlb job. If you were, you would do it. If the difference in what you make in your job and one of those was the difference in feeding your family or not, you’d be screwed.
I think you are proving my point. Many fast food workers can perform a job at a fast food restaurant but they choose to be ****** at it.

Therefore they don’t get the same enjoyment out of life as many others.
 

Maroon Eagle

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May 24, 2006
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So you think 20% plus of the population is mentally or physically incapable?
In the workforce, I’d say that high a percentage is unlikely.

That said, when about a quarter of the US population has a disability with the South being the region with the highest percentage, folks in businesses might have to take that into account— especially when there’s a worker shortage.

(The reason why I think that high a percentage would be unlikely is that ages 65+ are more likely to have some type of disability - 40 percent roughly - and many of them may likely already be retired.)

Link: Here.
 

paindonthurt

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In the workforce, I’d say that high a percentage is unlikely.

That said, when about a quarter of the US population has a disability with the South being the region with the highest percentage, folks in businesses might have to take that into account— especially when there’s a worker shortage.

(The reason why I think that high a percentage would be unlikely is that ages 65+ are more likely to have some type of disability - 40 percent roughly - and many of them may likely already be retired.)

Link: Here.
Do you really believe 25% of the US population is actually disabled?

If that’s true it’s a sad state of what we consider a “disability”.
 
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M R DAWGS

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Apr 13, 2018
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More like 25% of the population is lazy. Bazinga

3% may be truly disabled
 
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