Does Minimum Wage Increase Help Or Hurt The Appraisal Business?

[The Warrior Monk]

The USA also is on that list and within that list has a higher min wage than other nations, and we are an economic powerhouse ...albeit one with a debt problem and our debt had nothing to do with the min wage ,It's that relative to our standard of living the min wage has fallen behind.

It has fallen behind that of smaller nations with notable structural differences. People only look at the bottom line; they are unwilling to accept all that goes along with it.

Minimum wage is just some random, artificial number decided by politicians. However, it is indirectly affected by debt, in that debt creates inflation, making the unit of currency worth less and thus have less purchasing power.

My point was if a low min wage is the economic panacea some seem to believe, why is it so many nations with a low min wage are also the poor nations with stinky economies?

Nobody stated this. As far as businesses go, they are only concerned about the overall labor cost, which includes wage, taxes, benefits, regulatory costs, etc. The minimum wage really doesn't appear to have increased that dramatically proportionate to the economy. The reason is that the other costs pertaining hiring an employee have dramatically increase. So the actual wage that can be paid to an employee is the money allocated to hiring and employee, minus all the other costs associated with hiring the employee (except wages).

Australia also on that list a large nation and as India and China emerge as the next economic powerhouses their wages are going up, not going down or staying stagnant.

I'm referring to actual population, not land area. Australia has a smaller than than several US states: CA and TX have larger populations that Australia, and FL is not too far behind. Australia not only has a relatively small population given it's land size, but it also has a large amount of natural resources given it's population.

 

[J Grant]

I understand your arguments, just saying there are many sides to this. FWIW I think a jump to $15 is too much, If I were the decider the fed min would got to $9- $11 an hour range

 

[The Warrior Monk]

I understand your arguments, just saying there are many sides to this. FWIW I think a jump to $15 is too much, If I were the decider the fed min would got to $9- $11 an hour range

There are many sides to this.

I'll give an example. The family health-care plans provided by the various municipal entities around here would cost an independent contractor in the range of $3,200 to $3,600 per month. Subtracting out the cost the employee pays, which is nominal, we're talking about a single benefit costing the employer in the rage of $40K per year, or about $20/hour per employee. Now add in 1/2 the SS taxes, medicaid, union dues if applicable, retirement, etc. So now you're pushing $30/hour before you even get to the wage.

 

[Pittsburgh Pete]

There are many sides to this.

I'll give an example. The family health-care plans provided by the various municipal entities around here would cost an independent contractor in the range of $3,200 to $3,600 per month. Subtracting out the cost the employee pays, which is nominal, we're talking about a single benefit costing the employer in the rage of $40K per year, or about $20/hour per employee. Now add in 1/2 the SS taxes, medicaid, union dues if applicable, retirement, etc. So now you're pushing $30/hour before you even get to the wage.

Must be some serious Cadillac plans!! Numbers bear no resemblance to the reality I know--and I've been paying insurance for my self and employees for decades. I suppose there are plans that cost that out there but my experience is a cost of 20% of that with a reasonable deductible.

 

[The Warrior Monk]

Must be some serious Cadillac plans!!

They are. Top tier everything.

Numbers bear no resemblance to the reality I know--and I've been paying insurance for my self and employees for decades. I suppose there are plans that cost that out there but my experience is a cost of 20% of that with a reasonable deductible.

Feel free to click around the rate sheets to see what things cost:

https://conferenceny.com/insurance-solutions/plan-administrators/#1537569059165-fcadb3e1-7997

 

[J Grant]

There are many sides to this.

I'll give an example. The family health-care plans provided by the various municipal entities around here would cost an independent contractor in the range of $3,200 to $3,600 per month. Subtracting out the cost the employee pays, which is nominal, we're talking about a single benefit costing the employer in the rage of $40K per year, or about $20/hour per employee. Now add in 1/2 the SS taxes, medicaid, union dues if applicable, retirement, etc. So now you're pushing $30/hour before you even get to the wage.

that's an extreme high range but regardless, employer paid or employer contribute to health plans has got to go as the main underpinning or our health care system, esp as many "jobs" nowadays are gig economy, part time, independent contractor. It also depresses wages by employer contributions. Medicare for all makes the most sense with higher premiums in the younger years tapering off to as ages or some other national health plan such as Canada, England has though medicare offers private physicians but at national level pay in rates. Anyone is free to buy whatever additional health ins they want but our nation is burdened by crazy high health ins costs tied to employer is dragging us down

 

[Pittsburgh Pete]

They are. Top tier everything.



Feel free to click around the rate sheets to see what things cost:

https://conferenceny.com/insurance-solutions/plan-administrators/#1537569059165-fcadb3e1-7997

Sorry, don't need to click around anywhere. Meet annually with an insurance broker and look at multiple options and possibilities. Have 30+ years of dealing with the issue.

 

[Overimprovement]

Instead of asking "would the average American like to make $X/hr?, let's properly frame the question:

"Would the average American, currently making $X/hr, like to go get a two or four year degree, pay many thousands in hard dollar costs, work for peanuts under a supervisor (if one could be found) for 3-5 years, all for the POTENTIAL to make $Y/hr, AFTER their business startup costs, and AFTER a sufficient flow of clients has been achieved, all the while bearing the risks of being self-employed?"

That's the proper question. Look, there is nothing terribly high level or analytical in what most appraisers do (some CGs, yes, but we are mostly talking CRs here). The barriers to entry are not high intelligence (above average maybe, but not Mensa stuff), social standing, age, or really anything. The barrier to entry is a strong work ethic, commitment, and a large amount of time.

Those of us who are already ABLE to make that $X/hr sometimes forgot the enormous time and dollar cost it took us to get to this ability. Lets include our training and education hours in our currently hourly rate as well.

The 2nd newspaper of the day costs pennies to print. The first, many tens of thousands of dollars, depending on size. And Tens of millions in plant, fixtures and equipment just to be able to. So arguably, that first ever newspaper may need an investment of 8 figures. The 2nd one printed, pennies.

Lets be aware if are talking about someone's first appraisal, or their second.

 

[The Warrior Monk]

Sorry, don't need to click around anywhere. Meet annually with an insurance broker and look at multiple options and possibilities. Have 30+ years of dealing with the issue.

I'm just discussing this in the context of the thread. The actual unsubsidized cost of health care to the company can exceed minimum wage, and does in many circumstances. Many companies can't afford it, obviously, to they either must reduce or eliminate the cost.

People look at minimum wage in a vacuum. Companies look at the total cost associate with an employee.

 

[Pittsburgh Pete]

I'm just discussing this in the context of the thread. The actual unsubsidized cost of health care to the company can exceed minimum wage, and does in many circumstances. Many companies can't afford it, obviously, to they either must reduce or eliminate the cost.

People look at minimum wage in a vacuum. Companies look at the total cost associate with an employee.

Not aware of any minimum wage jobs that provide health insurance. Yes, healthcare is a cost of employment but it is getting rarer and rarer.