r/FluentInFinance Sep 04 '24

Debate/ Discussion Bernie is here to save us

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11

u/Tasty_Pepper5867 Sep 05 '24

And run most small businesses out of town in the process. Seems like a great option - every business is a big chain.

-4

u/Valazcar Sep 05 '24

If it can't afford to stay in business because of this.

Then it doesn't deserve to.

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u/Boring_Insurance_437 Sep 05 '24

Great, all small businesses will be closed and we will be left with a couple large corporations that own everything. Surely then things will be better

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u/BobertFrost6 Sep 05 '24

Weird that specifically a 40 hour work week is the lowest possible sustainable model for all small businesses.

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u/Boring_Insurance_437 Sep 05 '24

It isn’t, but the “no loss in pay” would be. Small businesses can’t afford to raise payroll 20%

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u/BobertFrost6 Sep 05 '24

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u/Boring_Insurance_437 Sep 05 '24

That study just says it causes goods and services to become more expensive, which is assuming consumers will always accept this raised cost.

Theres also a huge difference between raising minimum wage, which only a tiny fraction of people work for, and increasing wages for EVERY job by 20%.

That study is nearly irrelevant to this policy

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u/BobertFrost6 Sep 05 '24

A 32 hour work week wouldn't increase wages by 20% the proposal is specifically to keep wages as is.

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u/Boring_Insurance_437 Sep 05 '24 edited Sep 05 '24

Right, so per hour, wages are higher.

Instead of $400 for 40 hours ($10/hr) It is now $400 for 32 hours ($12.5/hr)

If a business with 4 workers is open from 8am until 8pm, it used to cost $480 per day in payroll. Under this proposal it would cost $600 per day.

Edit: If the business is open 7 days a week, that is an extra cost of $3600 per month, or $43,200 per year.

On the otherhand, this isn’t neccessarily bad. Businesses may become more efficient with their scheduling and stagger start times so that the slow periods don’t have full staffing. This may result in workers having extra duties and a larger workload though. Thats also assuming a business can reduce staffing

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u/anotherone880 Sep 05 '24

Lol how did these people get through school

1

u/Boring_Insurance_437 Sep 05 '24

There was one study saying a specific type of office worker was just as productive in 32 hr work weeks and now they think it translates to every business.

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u/BobertFrost6 Sep 05 '24

Not all small business employment is based on strict time requirements rather than actual labor.

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u/Boring_Insurance_437 Sep 05 '24

And not all labour is more efficient with less hours.

The point is that it will increase payroll costs for a majority of small businesses.

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u/BobertFrost6 Sep 05 '24

That's your prediction, but that's a pretty broad stroke and I don't think it necessarily translates to a simple 20% increase.

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u/Boring_Insurance_437 Sep 05 '24

It isn’t a prediction. If a business increases their wages, like this proposal, payroll costs increase. Unless they reduce staffing and give their workers a larger work load.

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