Hot Seattle Employer Raises Minimum Wage $70,000 a Year

  • Posted by a hidden member.
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    Apr 14, 2015 2:34 AM GMT
    gravity-income-announce-videoSixteenByNi

    NYT: The owner of a small company in Seattle said he heard stories of how tough it was to make ends meet even on salaries that exceeded the federal minimum wage.

    http://www.nytimes.com/2015/04/14/business/owner-of-gravity-payments-a-credit-card-processor-is-setting-a-new-minimum-wage-70000-a-year.html
  • Svnw688

    Posts: 3350

    Apr 14, 2015 5:00 PM GMT
    70K is better than the "federal minimum wage," but that's still only 40K after taxes, which is 3.3K a month net pay. That's one hundred dollars a day.

    How can a person pay rent/mortgage, medical insurance, water, electric, gas, groceries, car, car insurance, dental, vision, telephone, internet, cable/NetFlix, dry cleaning, cleaning supplies, take out, alcohol/bars, clothing, airfare, and other non-monthly expenses that come up all the time.

    That's impossible. It cannot be done financially with USA prices. Even if you coupon clip and live frugally, there simply wouldn't be enough money.
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    Apr 15, 2015 12:09 AM GMT
    Svnw688 said70K is better than the "federal minimum wage," but that's still only 40K after taxes, which is 3.3K a month net pay. That's one hundred dollars a day.

    How can a person pay rent/mortgage, medical insurance, water, electric, gas, groceries, car, car insurance, dental, vision, telephone, internet, cable/NetFlix, dry cleaning, cleaning supplies, take out, alcohol/bars, clothing, airfare, and other non-monthly expenses that come up all the time.

    That's impossible. It cannot be done financially with USA prices. Even if you coupon clip and live frugally, there simply wouldn't be enough money.


    ROFL
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    Apr 15, 2015 1:15 AM GMT
    Svnw688 said70K is better than the "federal minimum wage," but that's still only 40K after taxes, which is 3.3K a month net pay. That's one hundred dollars a day.

    How can a person pay rent/mortgage, medical insurance, water, electric, gas, groceries, car, car insurance, dental, vision, telephone, internet, cable/NetFlix, dry cleaning, cleaning supplies, take out, alcohol/bars, clothing, airfare, and other non-monthly expenses that come up all the time.

    That's impossible. It cannot be done financially with USA prices. Even if you coupon clip and live frugally, there simply wouldn't be enough money.


    It's called living within your means. Don't put the blame on your government when you have the opportunity to pursue any career of your liking, given you're willing to put the work in to get there.

    This model isn't without it's flaws. It will encourage employee loyalty but when it comes to hiring, more people will apply thus allowing the company to hire to the most desirable of the bunch, who may be better off at another firm that doesn't have a pay scale that trails a little too close to socialism. Soon they'll have people with their masters who can't find jobs within their domain doing clerical work, meaning it will be smart people working hard because they know they're lucky to be making that much money.

    And people that don't realize that having a high minimum wage is an awful idea seem to be the people that they would become priced out of things like homeownership... when people make more money, they consume more. When consumers' demand increases, so do prices. Thus the people making more than minimum (but not much more) are put on the same level as the people who are making minimum wage. Poverty and people who live pay check by pay check are inevitable in our capitalistic, North American modern times. The class that feels economic impact the most with increasing wages is the working class, and seldom in a good way.
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    Apr 15, 2015 4:16 AM GMT
    Svnw688 said70K is better than the "federal minimum wage," but that's still only 40K after taxes, which is 3.3K a month net pay. That's one hundred dollars a day.

    How can a person pay rent/mortgage, medical insurance, water, electric, gas, groceries, car, car insurance, dental, vision, telephone, internet, cable/NetFlix, dry cleaning, cleaning supplies, take out, alcohol/bars, clothing, airfare, and other non-monthly expenses that come up all the time.

    That's impossible. It cannot be done financially with USA prices. Even if you coupon clip and live frugally, there simply wouldn't be enough money.


    What did I just read?
  • Eli_jah

    Posts: 1391

    Apr 15, 2015 6:44 AM GMT
    sunjbill said
    Svnw688 said70K is better than the "federal minimum wage," but that's still only 40K after taxes, which is 3.3K a month net pay. That's one hundred dollars a day.

    How can a person pay rent/mortgage, medical insurance, water, electric, gas, groceries, car, car insurance, dental, vision, telephone, internet, cable/NetFlix, dry cleaning, cleaning supplies, take out, alcohol/bars, clothing, airfare, and other non-monthly expenses that come up all the time.

    That's impossible. It cannot be done financially with USA prices. Even if you coupon clip and live frugally, there simply wouldn't be enough money.


    Pretty sure you'd pay about 20% to 22% total taxes on $70,000 in Washington, Fed and State, not 42% as you throw out there.


    Yeah, wtf? 40K net from 70K gross is preposterous.
  • Eli_jah

    Posts: 1391

    Apr 15, 2015 6:48 AM GMT
    Svnw688 said70K is better than the "federal minimum wage," but that's still only 40K after taxes, which is 3.3K a month net pay. That's one hundred dollars a day.

    How can a person pay rent/mortgage, medical insurance, water, electric, gas, groceries, car, car insurance, dental, vision, telephone, internet, cable/NetFlix, dry cleaning, cleaning supplies, take out, alcohol/bars, clothing, airfare, and other non-monthly expenses that come up all the time.

    That's impossible. It cannot be done financially with USA prices. Even if you coupon clip and live frugally, there simply wouldn't be enough money.


    Depends on where you live of course, but most people don't have all of these expenses (or some are combined such as telephone, internet, cable), and you're forgetting debt payments especially credit cards and student loans.

    Seeing as how there are families surviving on 30k a year, I think somehow managing to eke out a living on $70,000 is doable.

  • roadbikeRob

    Posts: 14360

    Apr 15, 2015 12:13 PM GMT
    Svnw688 said70K is better than the "federal minimum wage," but that's still only 40K after taxes, which is 3.3K a month net pay. That's one hundred dollars a day.

    How can a person pay rent/mortgage, medical insurance, water, electric, gas, groceries, car, car insurance, dental, vision, telephone, internet, cable/dry cleaning, cleaning supplies, take out, alcohol/bars, clothing, airfare, and other non-monthly expenses that come up all the time.

    That's impossible. It cannot be done financially with USA prices. Even if you coupon clip and live frugally, there simply wouldn't be enough money.
    40K isn't enough to comfortably live on, what fantasyland are you living inicon_question.gif
  • thadjock

    Posts: 2183

    Apr 15, 2015 4:03 PM GMT
    Mulignan said
    Yeah, wtf? 40K net from 70K gross is preposterous.


    agreed, if you're only taking home 40k you're doing everything wrong and living a totally consumerist lifestyle.

    my gross is considerably more and I've had several years where I've legally paid NO taxes, in cali nonetheless. if you spend all your money on bars/acohol/netflix/and expensive apt rent, you'll never get anywhere.

    own a business, buy real estate, depreciation and the mortgage interest deduction (get it while u can) are amazing wealth building tools, and if you're self employed you can get real creative with retirement plans too.

    you gotta think beyond "paycheck" income.
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    Apr 15, 2015 4:23 PM GMT


    paracosm said, "And people that don't realize that having a high minimum wage is an awful idea seem to be the people that they would become priced out of things like homeownership... when people make more money, they consume more. When consumers' demand increases, so do prices. Thus the people making more than minimum (but not much more) are put on the same level as the people who are making minimum wage. Poverty and people who live pay check by pay check are inevitable in our capitalistic, North American modern times. The class that feels economic impact the most with increasing wages is the working class, and seldom in a good way."

    I agree that leap frog minimum wage isn't good, as aside from the reasons you gave there is that pesky inflation, and with inflation comes punitive interest rates to try keep said inflation in check, then come the resultant cascades of foreclosures, and tightening of business belts (layoffs) as the cost to service their accumulated debts increases because of higher interest rates on debts.

    Up here, they raised the minimum wage by over 2 dollars an hour over 3 years. Now, they are indexing minimum wage to inflation (roughly 2% a year) and we're not seeing any of the fallout you or I mention. An increase is not the problem so much as how it is phased in.
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    Apr 15, 2015 4:37 PM GMT
    Yeah, I was gonna call "foul," too, but throw in property taxes, excise taxes, sales tax, and the ever-growing suck of "user fees" levied by self-perpetuating bureaucracies and it can be even more than that. But we're talking about the average salaryman here. Where I live, per capita income is only $22k. People just have to get by without almost everything on Svnm's list, and/or live collectively. Employers are still offering only about $35K to people with technical degrees and years of experience.

    I just want to slap people for taking those jobs. If the dock workers in the same town can demand $170k for driving fork lifts, you'd think chemists could at least hold the line at $70k or $80k
  • thadjock

    Posts: 2183

    Apr 15, 2015 7:06 PM GMT
    mindgarden said Employers are still offering only about $35K to people with technical degrees and years of experience.

    I just want to slap people for taking those jobs. If the dock workers in the same town can demand $170k for driving fork lifts, you'd think chemists could at least hold the line at $70k or $80k


    it's all about supply and demand, there's a chronic surplus of labor in the world. and it's only gonna get worse, technology keeps reducing the number of man hours required to do every task, (they already have driverless forklifts, so that dock worker is living on borrowed time) and the population keeps growing, the track we're on is not sustainable.

    in order to avoid complete social collapse we'll have to shift to a guaranteed basic income economy, because full employment with the shrinking number of jobs just isn't possible anymore.

    an interesting article that sums it up:
    http://io9.com/how-universal-basic-income-will-save-us-from-the-robot-1653303459
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    Apr 15, 2015 7:36 PM GMT
    The NYT also reported that many employers used the Great Recession to get rid of laborers without much outcry. Unfortunately, many of these positions were held by men who are now older and having harder time finding full-time work.

    Liberal cities like Seattle, Silicon Valley, and New York have been spared.
  • thadjock

    Posts: 2183

    Apr 16, 2015 3:13 AM GMT
    woodsmen saidThe NYT also reported that many employers used the Great Recession to get rid of laborers without much outcry. Unfortunately, many of these positions were held by men who are now older and having harder time finding full-time work.

    Liberal cities like Seattle, Silicon Valley, and New York have been spared.


    the recession also showed companies that they could trim their workforce by 20%-30% or even more (through attrition or layoffs) without affecting productivity at all, and in some cases productivity even increased.

    there's a lot of deadwood and sandbaggers on payrolls just "because", for no other good reason. Hiring practices have gotten much leaner and meaner, don't expect the good old days of easy money jobs to return.