JupiterSunsation
New member
I read an article outlining the flaws with Obama's job creation/credit plan. Guy owned a chain of vetinary clinics and was considering hiring a new worker to get the few thousand dollar credit. The problem was the $15-16 job actually costs the guy over $20 an hour after social security, medicare, workers comp etc. At a real cost of $800 wk/ 41,600 a year the cost out valued the work the employee did even after getting the credit back! He said he is still weighing the decision but hasn't hired anyone yet.
Employees think they are always underpaid but from the standpoint of labor=production/profit vs. cost to employer the employee sometimes is overpaid/inefficient. I let a long time employee go 2 years ago and replaced him with a guy for $200 a week less (over 10,000 in savings per year!). The work quality is the same or maybe a tad better and the market for the job has shifted to lower wages since there are more eligible workers hungry for a job.
Now for the ex-employee, he went out job hunting thinking $800 a week is the lowest he would take despite the fact he was overpaid. Last I heard he was living with his mother (he is 49) and not working. Realistically he will struggle to find work at $400 a week (due to recent loss of drivers license). The wage time machine easily got turned back 20 years on this guy (as in his earning potential is back to where it was in the late 80's).
Employees think they are always underpaid but from the standpoint of labor=production/profit vs. cost to employer the employee sometimes is overpaid/inefficient. I let a long time employee go 2 years ago and replaced him with a guy for $200 a week less (over 10,000 in savings per year!). The work quality is the same or maybe a tad better and the market for the job has shifted to lower wages since there are more eligible workers hungry for a job.
Now for the ex-employee, he went out job hunting thinking $800 a week is the lowest he would take despite the fact he was overpaid. Last I heard he was living with his mother (he is 49) and not working. Realistically he will struggle to find work at $400 a week (due to recent loss of drivers license). The wage time machine easily got turned back 20 years on this guy (as in his earning potential is back to where it was in the late 80's).
