Re:Amazon raises minimum wage to $15 for all US employees
by skybrian on Tuesday October 02, 2018 @04:34PM
(#18125485)
For a profitable company where wages are a major expense, it seems like lower prices with higher wages can only be achieved with higher productivity. I think an economist would attribute this more to Ford's assembly line?
But sure, a high-productivity business can lead the way on wage increases. Other businesses might have to raise prices to keep up.
I'd like to read more about Ford's effect on wages outside Detroit. This "creator of the middle class" sounds like it might be exaggerated?
Re:Amazon raises minimum wage to $15 for all US employees
by blattimwind on Tuesday October 02, 2018 @07:24PM
(#18126530)
> For a profitable company where wages are a major expense, it seems like lower prices with higher wages can only be achieved with higher productivity. I think an economist would attribute this more to Ford's assembly line?
FWIW productivity has literally exploded in the last few decades.
Re:Amazon raises minimum wage to $15 for all US employees
by LordDragonfang on Tuesday October 02, 2018 @05:30PM
(#18125875)
>For a profitable company where wages are a major expense, it seems like lower prices with higher wages can only be achieved with higher productivity.
Productivity vs hourly pay has pretty famously stagnated since the 1970s[1] after being closely correlated for years before. The issue is simply that people aren't being paid enough for the value they add to companies.
Re:Amazon raises minimum wage to $15 for all US employees
by airstrike on Tuesday October 02, 2018 @08:17PM
(#18126752)
That first chart totally misses the hourly compensation upside that's observed abroad. Globalization really kicked in during the late 20th century so that's to be expected.
Re:Amazon raises minimum wage to $15 for all US employees
by flashman on Tuesday October 02, 2018 @09:18PM
(#18126972)
> Why is Bezos doing this?
workers organised
organise, workers!
Re:Amazon raises minimum wage to $15 for all US employees
by fipple on Thursday October 04, 2018 @12:05PM
(#18141113)
LOL! Bezos is doing this to fuck Walmart. They employ much more minimum wage labor than Amazon does.
Re:Amazon raises minimum wage to $15 for all US employees
by digitaltrees on Friday October 05, 2018 @01:18AM
(#18145890)
This is it.
Re:Amazon raises minimum wage to $15 for all US employees
by daveFNbuck on Wednesday October 03, 2018 @11:24AM
(#18131083)
That makes a lot of sense. I wonder why I've never before heard the part about Ford triggering an overall wage increase across the country as part of the often repeated story of him paying his employees more so they could afford to buy his cars. It doesn't make sense without that addition.
Re:Amazon raises minimum wage to $15 for all US employees
by Bombthecat on Friday October 05, 2018 @06:39AM
(#18147051)
It's a great move. They might even push it to 16.amazon is like :ok, no problem, fire 20% and automate.
Small buisness will go out of business... So amazon is preparing its Monopol. Really smart.
Great example is fast food as well. If you are offering the "lowest cost" food option, and providing the minimum wage, you've got product/purchasing power that are both at the bottom of the food chain. And if employees can't afford to buy your food... then who is going to? Your product doesn't match the market you'd supposedly be selling to.
This is why Ford is considered the creator of the middle class. He took automation and used it as a way to set a different standard for society, one that inherently helped his own product succeed in the long run.
Why is Bezos doing this? Because Amazon succeeds when people have more disposable income. And it starts with his company. sure he might get regulated to do it anyways, but now he is pushing the needle. Regulators might push an overall minimum wage hike to $15 because "if amazon can do it, why cant you?" The merits of that hike aside, know who stands to benefit from people having more money to spend? Amazon.