Lake Erie Conservative

thoughtful discussion(s) about issue(s)

Posts Tagged ‘substitution’

… What Happens When You Do Something Dumb [#the $15 min wage]…

Posted by paulfromwloh on Tuesday,November 15th,2016

.. companies make changes ..

.. it is called substitution in economics ..

.. why ?? …

.. [h/t — theGatewayPundit.com]..
.. [link] to the blog post ..

.. many of Mickey D ‘ s employees are transitory [transitional] . They do not stay at the restaurant all that long . Sometimes , the store finds someone that is special , and they invest the time and man – hours in that person . But that does not happen very often …

.. so when folks do something that is economically stupid , such as adopting the $15 minimum wage , a company thinks ahead . They can see this coming . When it happens , they change . They ” substitute ” technology for human capital , and then the economics work again …

.. unfortunately , the lower – wage and lower – skilled worker pays the price . The company can and must become much pickier . It does pay them to pay more , but for a much higher – skilled worker . As in one who is likely willing to stay around the restaurant a good bit longer …

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… See What Happens [#economics][#substitution]…

Posted by paulfromwloh on Saturday,August 6th,2016

.. the folks in San Francisco raised the minimum wage up to $15 / hour . So what do you think would happen ? … Technology is substituted for human capital [people employed]…

.. [h/t — theRightScoop.com]..
.. [link] to the blog post …

.. could people be that oblivious to the advances in technology ? It appears so . The loonie lefties pushed thru this $15 / hour minimum wage , and they just assumed that there would be no response to it . Well they were found to be both idiotic and badly wrong at the same time …

.. this restaurant is a fascinating idea . It will also teach the loonies a tough lesson . The 21st century return of the Automat !! …

Posted in economic opinion, judgement (financial), Law of Unintended Consequences, personal opinion, stupidity (financial) | Tagged: , , , , , , , | Leave a Comment »