Wage Increase Trickle Down

[AZkiller]

Yes this mindset has been the norm and accepted since the progressive FDR

[Snapshot]

Back in the recession days of 2008-09, worked dried up for my cabinetshop. Had to look for work. Met with a contractor who needed finish carpenters. He told me because of the recession, they were paying less than average. I looked him in the eye and asked him if they were charging less for the houses? Interview ended.

 

There are legitmate reasons for raising prices, and there are those that will take advantage of it.

[mattys281]

Back in the recession days of 2008-09, worked dried up for my cabinetshop. Had to look for work. Met with a contractor who needed finish carpenters. He told me because of the recession, they were paying less than average. I looked him in the e and asked him if they were charging less for the houses? Interview ended.

There are legitmate reasons for raising prices, and there are those that will take advantage of it.

I would be willing to bet a lot that the houses they were building were not only selling cheaper, but also selling a lot fewer and a lot slower. I bought my first house in 2009. It had been built 3 or 4 years earlier and sold for $308k. I got it as a foreclosure for $125k. There was so many houses on the market, it was rediculous. Houses that were only a couple years old and some still had furniture in them because the people who lost it couldnt afford a moving van. There were some short sales that were brand new, never lived in.

[Non-Typical Solutions]

Back in the recession days of 2008-09, worked dried up for my cabinetshop. Had to look for work. Met with a contractor who needed finish carpenters. He told me because of the recession, they were paying less than average. I looked him in the eye and asked him if they were charging less for the houses? Interview ended.

 

There are legitmate reasons for raising prices, and there are those that will take advantage of it.

Up until 2008 my plan to teach school during the winter months and build cabinets during the summer had worked out pretty dang good. Best of both worlds!!!

Then I had to go work out at the pig farm to keep me busy during the summer!!!

I absolutely loved building cabinets very gratifying. Up until about two years ago I hired out for trim charging $10.00 an hour, last two years I upped it to $15.00.

I don't enjoy it as much as I used to, eyes getting bad and hands not so steady and dam......I have gotten slow!!!

[Snapshot]

 

Back in the recession days of 2008-09, worked dried up for my cabinetshop. Had to look for work. Met with a contractor who needed finish carpenters. He told me because of the recession, they were paying less than average. I looked him in the e and asked him if they were charging less for the houses? Interview ended.

There are legitmate reasons for raising prices, and there are those that will take advantage of it.

I would be willing to bet a lot that the houses they were building were not only selling cheaper, but also selling a lot fewer and a lot slower. I bought my first house in 2009. It had been built 3 or 4 years earlier and sold for $308k. I got it as a foreclosure for $125k. There was so many houses on the market, it was rediculous. Houses that were only a couple years old and some still had furniture in them because the people who lost it couldnt afford a moving van. There were some short sales that were brand new, never lived in.

Yep. I know what its like to lose a house.

 

Contractor wanted to keep his profit margins up by screwing others. I don't play that game.

[Non-Typical Solutions]

Last summer I didn't do much work for anybody but my wife.....the pay is better than most paying jobs, and I don't have to report it to IRS.

I finally discovered that everything I was earning during the summer months in reality was just going to Uncle Sam.

[Snapshot]

Dow Jones hit 20,000 for the first time ever.

 

Hopefully things will be looking up.

[mattys281]

Last summer I didn't do much work for anybody but my wife.....the pay is better than most paying jobs, and I don't have to report it to IRS.

I finally discovered that everything I was earning during the summer months in reality was just going to Uncle Sam.

 

 

Sounds like you worked yourself into a higher tax bracket. Instead of giving up the income, you need to get involved with a good financial planner if that's the case. Between things like sep IRA's & solo-401k's there's little reason to give the gov so much money that it's not worth earning. I dumped a small fortune into those things this year. The upside is that it dropped me down 2 tax brackets and while I certainly won't get a refund I probably won't have to write a check. The down side is I can't touch my money until I'm 59. But if I wrote that check to Uncle Sam instead I'd never see it again.

[billrquimby]

"I think the government setting the minimum wage really has no impact on whether it is a Free Market or not. They are not setting the price of goods/services. Just adding a factor that can drive prices. Has been that way for decades."

 

 

Huh? The cost of labor, materials, material handling and sales, along with the usual factors of supply and demand, ultimately determine the price of all goods and services. It ceases to be a "free market" when government mandates any link in this chain ... and government involvement almost always is inflationary.

 

Bill Quimby

[Non-Typical Solutions]

 

Last summer I didn't do much work for anybody but my wife.....the pay is better than most paying jobs, and I don't have to report it to IRS.

I finally discovered that everything I was earning during the summer months in reality was just going to Uncle Sam.

 

 

Sounds like you worked yourself into a higher tax bracket. Instead of giving up the income, you need to get involved with a good financial planner if that's the case. Between things like sep IRA's & solo-401k's there's little reason to give the gov so much money that it's not worth earning. I dumped a small fortune into those things this year. The upside is that it dropped me down 2 tax brackets and while I certainly won't get a refund I probably won't have to write a check. The down side is I can't touch my money until I'm 59. But if I wrote that check to Uncle Sam instead I'd never see it again.

 

Not smart enough to know the ins and outs of it all but getting rid of 4 boys definitely had something to do with my finances !

At a very sketchy point in life!

I am collecting retirement as of last year, went back to work for the school district under a contractor ESI program, will hire back next year to get my insurance coverages.

Wife will do the same thing this coming year except she will be completely retired and get to stay home after 30 years of teaching.

We have rolled my retirement over into an investment account.....low risk set up.

Now I get to worry about what Bill was talking about with the wage increase....at some point my intake is going to be relatively fixed.......

 

Is there any wisdom at all in using one of our pots of money to get completely out of debt....car, house, etc. to minimize what I need a month to survive???

 

I know.....getting advice for spending money from a bunch of hunters.....go figure!!!

[Non-Typical Solutions]

"I think the government setting the minimum wage really has no impact on whether it is a Free Market or not. They are not setting the price of goods/services. Just adding a factor that can drive prices. Has been that way for decades." Huh? The cost of labor, materials, material handling and sales, along with the usual factors of supply and demand, ultimately determine the price of all goods and services. It ceases to be a "free market" when government mandates any link in this chain ... and government involvement almost always is inflationary. Bill Quimby

Bill......I remember when a sheet of 3/4 oak veneer plywood went from 30 bucks to 60 bucks almost over night.....all driven by the spotted owl......which in my mind was government meddling.......so many things as you say have their effect on prices and costs rising!!!

[stanley]

"I think the government setting the minimum wage really has no impact on whether it is a Free Market or not. They are not setting the price of goods/services. Just adding a factor that can drive prices. Has been that way for decades." Huh? The cost of labor, materials, material handling and sales, along with the usual factors of supply and demand, ultimately determine the price of all goods and services. It ceases to be a "free market" when government mandates any link in this chain ... and government involvement almost always is inflationary. Bill Quimby

 

I disagree with you on this, Bill.

 

The generally accepted definition of a free market is that it exists when prices are based on competition among private business and not controlled by the government. Minimum wage requirements and taxes are simply factors in the chain, but they do not represent the government actually 'controlling' prices (hence the market ultimately still sets the final price for goods/services). It definitely does not cease to be a free market just because one of the price factors is dictated by the government. It's simply that the prices tend to go up. That will happen in a free market or a 'non free market' (Is that even a term???), and in fact is more likely to happen in a free market as opposed to a market where the government sets the actual final price of the goods/services.

 

I agree with your statement that government involvement very often has an inflationary effect. Inflation will of exist in a free market whether government sets minimum wages or not, as there are many factors that can/will affect prices.

 

S.

[Non-Typical Solutions]

Minimum Wage Increases Over the Years

October 1938 (FDR): $0.25/hr ($4.15/hr in 2014 dollars)

October 1939 (FDR): $0.30/hr ($5.05/hr)

October 1945 (Truman): $0.40/hr ($5.20/hr)

January 1950 (Truman): $0.75/hr ($7.29/hr)

March 1956 (Eisenhower): $1/hr ($8.61/hr)

September 1961 (Kennedy): $1.16/hr ($8.97/hr)

September 1963 (Kennedy): $1.25/hr ($9.56/hr)

February 1967 (Johnson): $1.40/hr ($9.80/hr)

February 1968 (Johnson): $1.60/hr ($10.75/hr)

May 1974 (Nixon): $2/hr ($9.49/hr)

January 1975 (Ford): $2.10/hr ($9.13/hr)

January 1976 (Ford): $2.30/hr ($9.47/hr)

January 1978 (Carter): $2.65 ($9.51/hr)

January 1979 (Carter): $2.90/hr ($9.34/hr)

January 1980 (Carter): $3.10/hr ($8.80/hr)

January 1981 (Carter): $3.35/hr ($8.62/hr)

April 1990 (Bush): $3.80/hr ($6.82/hr)

April 1991 (Bush): $4.25/hr ($7.30/hr)

October 1996 (Clinton): $4.75/hr ($7.08/hr)

September 1997 (Clinton): $5.15/hr ($7.51/hr)

July 2007 (GW Bush): $5.85/hr ($6.61/hr)

July 2008 (GW Bush): $6.55/hr ($7.12/hr)

July 2009 (Obama): $7.25/hr ($7.80/hr)

[Big or Bust]

Hey ,I grew up poor back east in the ghetto. Moved here in 77 . Worked azzs off digging holes as the only white with all Mexicans. Within 10-11 years Got licsenced bonded and insured Landscape contractor. Made a great living for 20 years. No one ever handed Me nothing unlike probly half of You on here. I only Scaped new Homes. When they quit building, I was done. No $ in Maintanance as every Julio does it out of the back of there truck. I tried to hang on for 3 years. Used my house for $ to keep going. Eventually doing a short sale. At 60 I can not do labor. when I was 55 got CDL and moved oilfield in N. Dakota. Tore My shoulder apart Pulling hoses loading Oil. on the ice. After 10 months rehab, got fired. Thats big companies for Ya. A lot of You who have cushy jobs now with Big companies will get Screwed eventually so save your $. Ive seen it happen over and over again the last 30+ years to friends and Family members. If You don't pay People they will suck off the Goverment which You will pay more taxes. Some of You Wealthy or Educated people think You know It all cause You aint never had it hard. Your Day will come. Trust Me. Not every one but many of You. The bone head that said I sound like Bernie, I never listened to Him once ,so don't Speak about what You don't know. Am I Bitter losing 2 Houses ,Land in N. Mexico. Most of what I owned twice. Ya. but took up a New job Trucking and moving on again. I might be that 70 year old working at circle K in 10 Years thats Y I am for it. People with $ don't care about the poor and just think that they never tried. Many Have. And I am no a Democrat either by the way. Many of You are not as Smart as You think You are,( including ME LOL). You just listen to too much Rush Limbaugh. I do too for comedy Hour. And I am not writing this Drunk as most would think at this Hour. I just got Home from working 15 hours. Most rich folks wouldn't Comprehend that . I'm ranting. I know You Guys don't agree with Me but I could care less. Opinions are like Aholes ,Everybody has one. Hope We all can Make some Money AMEN , God Bless............BOB!

You may say you're not a Democrat but I got news for you...

 

Oh, and older most definitely doesn't give you a pass on being wiser.

 

There are lots of old guys who are bitter, think the world's against them, and think everyone under the age of 40 are idiots. I've found that generally, the old guys who are like this are bitter about younger people making choices in life and going about their business in ways they wish they would have.

[Snapshot]

Read an article over at Brietbart about a bunch of restaurants in San Francisco closing after they raised the minimum wage to $15. There were other contributing factors, but the increase was the proverbial " Straw on the camels back".

 

I really hate to see any, mom & pop businesses, having to close doors.