Over at TPC, MB McCart knocks the $15 minimum wage out of the park:
They have now seen their cost of goods sold increase the aforementioned 67.6%. This retailer has always used a 25% mark-up/gross profit model. What they used to sell for $25to the general public, will now undoubtedly have to go way up.
So, they add their usual 25% mark-up to their new COGS (cost of goods sold). That number in now $41.91.
BUT…Big But…this retailer now has to factor in their own increase of labor costs. They’ve found that they’ll need to tack on an additional 22%.
So now, when it’s all said & done, the retailer will now be selling “The Product” for the new price of:
$51.13 per unit vs. the $25 they used to charge.
So, the minimum wage has increased two-fold & so will the prices.
So…what’s the point?
The two points are these:
1. Corporate America will weather this storm very nicely while a large majority of small, independent businesses won’t (a win for the unholy alliance of Big Biz & Big Gov – and China, et al).
2. A doubling of the money supply will only greatly benefit the bank$ters & Wall Street.
And that’s the fact of the matter, America.
If you’ve already gotten it; or, now you get it. Well Done! Thanks. Now get off your asses & go make a difference!
For those of you who made it to the end of this & are just still stuck in your own general malaise & dissonance ( or can only do what your phone tells you to) — bless your hearts!
We’re all still pulling for you, though…
Read the whole thing, a fantastic and all-too-realistic economic assessment.