Linda, Jeff Wagner, TED discussed on Jeff Wagner
That means this guy's back on your radio. There's not like it. You know? That's what we all strive for. But everybody's looking at a championship down the road at some point brewers are gearing up for another run at the World Series expectations. I think that's where we want to be baseball is back on the air on February twenty third the NFL central champs way here GM. Jeff, Wagner, WTMJ, Neil and pleasant. Prairie. Neil your first. Hello. Jeff love the show, man. Thank you, sir. So here's the thing. I'm thinking, it's a domino effect. My wife works in daycare. She makes ten eleven dollars an hour. If it goes up to fifteen. You're gonna make fifteen dollars an hour. You wouldn't think so? I don't know what better would go a couple of dollars over. Well, almost almost has to. I mean, if let's say, let's take a fast food job. Let's say I started at nine bucks an hour. Now, I've been there for two or three years. And now, I'm an assistant manager and make it thirteen bucks an hour or whatever. Yeah. If if the starting wage now goes up to fifteen I'm going to expect. I mean, not going to expect a bump. You're gonna have to pay me at least nineteen or twenty that otherwise it's not fair. But the other thing is with how many teachers are are t to students. Now, all of a sudden the rates for the daycare go way. So this is affecting everybody. That's got kids in daycare. How do they afford it? Because granted they're making a little bit more money. But. Is it going to cover this even this little bit? We'll know you're you're right. And see. And that's what you don't think of me. Thanks for the call. That's what people don't think of this. Oh, well, it's so nice. Let's give people more money. Well, where is that? Where is that gonna come from? And you are exactly right. There is going to be sort of rolling effect. That's going to happen. Because you can't you can't just if you raise the minimum wage, so if you're starting out, you're you're starting salary like I say, I don't know how many people really start out at minimum wage given where we are in the economy nowadays. But okay, let let's say you're making ten bucks an hour. And all of a sudden he'll you as that's the entry urine employer. You're starting salaries. Ten bucks bucks an hour. Now, you have to pay those people fifteen you're obviously going to have to pay all the employees who've been with you who make less than fifteen you're going to have to give them an equivalent boost as well. You are talking about a massive increase in your payroll, and that that that money has to come from somewhere. For businesses. And you're exactly right. One of the places that that's gonna come is by just increasing costs. So you have this dramatic increase in again, the wage cost. Well, you're going to have to pass that on to the consumer. So all right for everybody. Your example was great. It was daycare, but fast, food, or whatever that's one of the unintended consequences of this Linda in World War tosa, linear WTMJ. Hello. I Linda I'm one of the things too is that we own for hair salon. It's a franchise. We employ high school students as receptionist they work from like four to eight PM in the evening years ago, we paid seven and a quarter while we pay them nine dollars an hour because that's what the market has dictated. I'll let you make your point Bill me to stop. That's exactly right. You can't do can't find anybody nowadays for minimum wage, at least anybody that you wanna hire. So to get kids that are worth bringing in that come back the next day. You you pay over minimum wage now you pay with the market bears. Exactly. So we now pay nine dollars an hour. If we were forced to pay them fifteen dollars an hour. We would no longer employ any high school kids would just be eliminated, and our hairstylists would be forced to do the vacuuming do the laundry do all of those things that we have these high school kids do. Oh, so that we can get clients in and out faster from the perspective of the high school kids, the choice in the scenario. You're having is you're either making those high school kids aren't gonna make fifteen bucks an hour. It's either going to be the nine bucks an hour. You could pay or they're gonna make nothing because that job is going to go away. 'cause you can't you can't afford it. Some people would say, Linda, Linda, your this rich business owner. I mean, how how dare you caused these people to work at this these slave wages? Well, the same thing the hairstylists would then have to be paid even more because they have formal education they're paid more than receptionist star. So again, it's a trickle effect. Everybody would have to be paid more based on their education and their qualifications. No, we could not afford it. Our the prices for our haircuts would have to increase dramatically. Right. And of course, that I mean that affects your customers, and it might affect you. It might affect you as a business because maybe okay. You got four hair salons, maybe you've got three that are doing better than one a fourth one minute. That's always the case. But you know, you're you're you're you're not making as much money on their fourth one. So you say, okay. Well, look now, we're going to be losing money. So we're just going to close the whole darn thing. Why? Right that that is the effect. No, thanks to call it that sitting at the important point that you make is that for a lot of these businesses. If the government comes in and tells you that you have to pay more than what the market says the job is worth. And to your point Linda the marketplace. The free market says the job of answering phones at your hair salon is worth nine dollars an hour. That's how much you have to pay to get somebody to come in. And do that job that is willing to do the job? And that you can you can live with you. Can't do it on minimum wage, it's the free market. But if the government comes in and tells you now you have to take that job that is worth nine dollars an hour, and you've got to pay fifteen dollars an hour. Your response is what I think a lot of businesses are going to say, well the heck with it. Okay. We're doing away with the job. It's plain and simple. And how does that benefit anybody Ted in west Allis, Ted, you're until I'm Jay Hello? Hello. I touch base on one of the things I wanted to talk about I think with all the automation, and the fact that there's more people getting into artificial intelligence and stuff like that. I think these people are committing suicide in somebody's. They're gonna wind up pushing. There's gonna be no jobs. I am. So glad you called Ted. I I have I have some friends I have acquaintances who own fast food restaurants, and the that that's always the debate with automation nowadays, you can and some restaurants have already gone to this like the the seltzer of kiosks, you know, where they that's right. So instead of having like three people at the counter who take your order, you know, maybe they have one person. And then they direct you to this kiosk where you go in you, push the buttons, you say you want this kind of burger or whatever. And then you go up and you pick it up. So you only need one person instead of three that kiosk. Maybe it costs you five thousand dollars to put in well, okay. At fifteen dollars an hour for labor costs. You've got net investment back pretty darn quick. So those jobs go away. Right. And they're going to do the same thing that you ever called someplace up, and you have to talk to an automated phone system. Right, basically. Yes, or no you'll be doing that. When you go through the drive through. He. You won't need a human being for anything. Right. And then the jobs go away. No, thanks to call. Now. That that is just the reality. And you're already starting to see that. It's it's the effect of of automation. I I'll tell you an example where where I see that a lot. I'm it's one of the few bad habits. I have left. My lovely bride friend has gotten me out of almost every bad habit that I have but one of the ones I still like to have occasionally I have been known to place wagers horse bets horse races. Well, ten years ago fifteen years ago, if you went to a track if you went to Arlington park, the place bets you would walk in, and you would see an entire array of people behind the counter who would take take your bets you'd go up. And I'd say I want twenty dollars to win a number eight and they'd punch out the ticket you go down for example to Arlington racetrack nowadays. And you'll find a couple of those stations manned, but not too many. Because what are they have? They have all these automated machines. And it takes you about ten minutes to figure out how to use it. But once you do you don't. Never have to go to see it an actual teller. You just go up and you kind of punch in race number three ten dollars to win number six, and it spits out your ticket, and you put the money in the machine, that's all you need to do. And so it used to be all these people that were out there actually taking the tickets that those jobs have gone away. Why? Because the this case it's the race tracks that said, okay, we can save a whole bunch of money. Why do we pay people to sit behind these counters that people that call in sick people that we have to pay benefits to when we can make this investment? We can buy these machines the machines. Well, they're going to be there every day they might break down every once in a while. But then we call somebody to come out and fix them. That's just the reality going there. And in the more you increase the wage cost, the more you increase the cost of the human help, the more incentive, you give to the employer to our caller, go, Linda. Okay. So Linda hires high school kids for nine bucks an hour to answer phones that are. Hair salons. All right. Well, alright you increase fifteen dollars an hour. And she said those jobs who's going to go away. But let's take another alternative. Maybe it gives her an incentive again to set up an automated phone system. So every time you call one of these hair salons, it goes into this computerized thing that's the type of stuff that goes on. And that's what I don't think. People think about let's talk to Paul who's calling us from Illinois, Paul WTMJ. Hello. Hi, thanks for taking my call. Thank you. Live in a state where we are in the process of raising minimum wage, but I haven't heard it's how many people are going to be coming off of government assistance, or if they're just going to increase the threshold and if they increase that threshold tire. All the way around from your home taxes for the businesses. Well, right. The the reality is these minimum wage jobs were never intended to be something that you can support a family of four on. And it doesn't matter whether the the minimum wage is nine bucks or ten bucks or twelve bucks. That's not what their gear for their entry level jobs. They're part time jobs designed to supplement their income. You're you're right. If you wanna try to figure out how much you have to pay for a family of four supporting job, you're probably he'll talking substantially more than fifteen dollars an hour. I'd have to sit down and do the math, but good and correct? You're right. I mean, this is look I I understand I understand that you you want to see people make as much money as possible. And unless some somebody thinks they're making too much money in that, which which case that's bad. But I just think taking an artificial thing and saying the free market. It says the job is worth nine bucks. We're gonna make you pay fifteen dollars. It might make you feel good, but the long reign concert range consequences. I think are a lot worse. This is direction. Tony wants to move the state hope not twelve fifty four. Stay tuned, Jeff Wagner returns after this on WTMJ. Now.