Skip to main content

View Diary: Why $17 an Hour Should be the Minimum Wage (95 comments)

Comment Preferences

  •  Highest costs are materials (0+ / 0-)

    It would be nice if they were even at the same level as 30 years ago,

    Productivity has outstripped labor costs

    "Another world is not only possible, she is on her way. On a quiet day, I can hear her breathing." Arundhati Roy

    by LaFeminista on Mon Apr 01, 2013 at 09:34:18 AM PDT

    [ Parent ]

    •  I think it depends on what you are producing (1+ / 0-)
      Recommended by:
      VClib

      if you are making an I-phone that may be true, if you are making a medical device then the actual cost to produce the device are much cheaper than the costs of development, regulatory, trials, marketing, sales, and service.

      If you look at GE, Philips, Siemens, Boeing, Microsoft, and even Apple their largest controlled cost is going to be wages and benefits.

      •  I worked for GE medical in Europe (1+ / 0-)
        Recommended by:
        Fall line

        there was a distinction

        Overheads labs, logistics, buying, sales, services etc etc

        Direct labor. Production

        Those in R&D didn't come in the minimum wage category, in fact GE paid reasonably well although  six sigma really was a total brake on creativity.

        "Another world is not only possible, she is on her way. On a quiet day, I can hear her breathing." Arundhati Roy

        by LaFeminista on Mon Apr 01, 2013 at 02:10:34 PM PDT

        [ Parent ]

        •  I worked for GE Healthcare as well (1+ / 0-)
          Recommended by:
          VClib

          in the ultrasound division.  

          You are correct that any minimum wage increase wouldn't really change the marginal cost of production in the factory.  I know for a fact that no-one in the CV ultrasound factory made less than $32k a year (of course the CV Ultrasound factory is in Norway).

          But it would effect costs for components, shipping, accessories, etc...

          Also this would create a headwind in future sales as individual physician practices, already being pressured by changes in reimbursement, would put off future equipment purchases if they had an increase in labor costs of $35k a year.   Same thing in the hospital environment if they had to bring everyone up to $17 an hour.

        •  What happened with (0+ / 0-)

          six sigma?

          The banks have a stranglehold on the political process. Mike Whitney

          by dfarrah on Mon Apr 01, 2013 at 07:05:47 PM PDT

          [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site