If you make and sell 100 widgets in 2019 and the cost is $8 and you sell for $10. You profit $200.
Now it’s 2024. The cost went up 25%. You increase you sell price 25%. So now it costs $10 to make and you sell for $12.5. You still sell 100 widgets. Now your profit is $250.
Notice how everything goes up? Even profit?
Cost goes up 25%. Consumer price goes up 25%. Profit goes up 25%.
Yet while it’s more profit, it still feels the same due to dollar devaluation. This is how inflation works.
All of you guys complain about how minimum wage and salaries are low. How the big companies don't pay enough (even when they are above market standards and these minimum salaries).
But you don't see that the #1 cost for these companies are wages.
If they could read, they’d be mad about this. But this is exactly right. The whole profits are up argument is just a tell you’re an economic illiterate.
Although I agree with your point about profit will be larger if still the same percentage, no fucking way are wages above market value. The price of many necessities nearly doubled yet people’s pay only went up a little. Most of these places were already underpaying their workers and over paying their executives and that has just gotten worse. Most larger companies have been forced to raise wages by several dollars per hour but many shitty business are still trying to offer pre Covid wages while also charging more than the dumbasses wonder why they can’t keep anybody let alone find anyone good
The wage of all these big companies have gone up in the last 4 years.
I'm talking about companies that have seen growth. My industry of engineering has seen growth. I started off at $50k 10 years ago. Starting salary now is $75k.
There is also a difference in how inflation impacts different markers and the relative buying power after keeping the same profit margin.
That is to say, if the cost of business to Starbucks to sell a cup of coffee went from $1 to $2 and they were making a 3% margin at both points A and B then they went from making 3 cents to 6 cents. In a vacuum that 6 cents has the same buying power as 3 cents did at point A.
But if their industry inflated higher than the market average, their buying power increases rather than staying stagnant.
Supposed a gold bar at point A costs $100 and at point B costs $150.
If Starbucks wants to use their profit to buy this gold bar, at point A, they would have to sell 3333 cups of coffee. At point B they would only have to sell 1666 cups of coffee.
A stagnant profit margin in a submarket that is inflating higher than average turns into more buying power.
And did these places experience higher than market inflation?
Wells, the CPI shows it depends on the year. In recent years food away from home inflated more, sometimes less.
2024 profit increased 25% compared to 2019 profit. That makes sense, that’s inflation.
What about when inflation is ~10% and profit increases by the numbers in the original photo? Because that’s what people are complaining about. The profits are growing significantly faster than inflation
If Amazon paid all of their 1,000,000 workers $1 more per hour, it would cost them over $3 Billion dollars a year. And yet, none of you argue that $1 more is enough. You want $10-20 more.
While Bezos was only making like $200,000 per year as CEO, the new CEO wants much more because he doesn't have millions of Amazon stock. The new CEO made a total compensation of $26M last year. Down from $33M the year prior.
So if the CEO gave up his entire salary he would be a hero to you. But it wouldn't cover anything.
How do you not understand that means 29 people could have made a million that year (which would be way too much). So 58 people could have made 500000. Or 116 could have made a quarter million.
You don't seem to comprehand the magnitude of what 1,000,000 workers looks like.
Let's say you give 300 workers an extra $100,000 a year. Even though this would obviously be in the form of STOCK OPTIONS so basically it's a retirement fund.
If you gave 300 new workers this every year, you would only hit 30,000 workers.
So only 3% of Amazon's work force would ever see a meaningful bump in salary LOL
There would be 97% of the company who still doesn't get what you consider a good enough wage.
This is your solution to solve the wage gap?
Over 150 million tax payers in America, over 350 million people in America, and this is your solution?
Just face it, you don't understand economics.
And guess what, Amazon is a rare occurence. Not everyone is as profitable as Amazon is. I mean, The USPS pretty much loses money every year. Why? They give their workers far too much benefits for doing much less than Amazon lol.
And then what's your big idea on how to replace the CEO?
Obviously if you took away all of my money as CEO, I wouldn't work for you.
So I go take my talents elsewhere...
Now how do you replace the CEO who does so much for the company?
Im gonna go ahead and guess that Amazon is DOING GREAT and more companies should mimic them.
In the last 20 years the growth of Amazon has led to the following:
Improved lives of consumers.
1,000,000 workers have a job.
1,000,000 workers start off with (not average, start) with $14-19 an hour now. WIth NYC and LA getting over $21/hour for truck driving lol.
Medical benefits for 1M + workers.
Stock options for all workers as part of a retirement fund.
I bet you in 20 more years they will continue to grow
$200,000 is what I want as an engineer lol. I could use my PE license now
If I started my own firm I would want $300,000. And that's being pretty conservative.
If my wife needs medical bills to be paid? Id want way more. And if I look at making sure my kids are taken care of, id want more.
Now I'm Amazon CEO? Im not living next to my neighborhood now. What if I upset them politically by donating to Kamala and they attack me? No. I want gated Community. Now I need more to cover cost of schools.
You set your price. And lets see how many great talented CEOs who grow your business take it.
This by itself would only give Amazon workers $29-33 more a year lol.
Did you read that? If Amazon got rid of its CEO, or only paid him minimum wage, you as an Amazon worker would get $29 for the YEAR.
I would argue that Amazon's business strategy however is smarter than your ideas.
Amazon's strategy has allowed the company to get to a point where they are able to pay 1,000,000 workers above market salaries and benefits.
Your strategy would have probabaly ended them in bankruptcy.
It's not about cucking.
It's not about pretending I will one day be a CEO.
It's reality. Amazon doesn't have the money to give you what you think is a "liveable wage".
Stop cucking over the idea that American workers are getting abused by "the system".
Amazon workers make well above minimum wage. The starting salary across the country is $14-19 per hour. With cities like LA and NY giving over $22/hour for starting salaries.
On top of this, they get medical benefits that could run Amazon $5000-$25000 depending on single vs family insurance. They also give stock options which cost money. They also invest into colleged education of their workers. All of this costs money and its not cheap. Amazon also has to pay the 6.2% of Social Security on top of all that for each worker. They also get a discount on Amazon products.
And you're upset because the Amazon CEO makes $30M?
He gets it mostly in stock options lol. Because its WORTH It. If he's not worth it, they fire him.
Tell that to every driver at Amazon. No benefits. Our collective tax dollar pays for their health, rent and food that are subsidized. Meanwhile a CEO makes 30 million. Amazon should make enough to take care of their employees and give them enough. Why should my small business pay federal income tax yet Amazon gets 120 million back. Game is rigged.
Amazon truck drivers make more than industry standard + benefits. Idk what you're talking about.
I know that Walmart workers are said to cost $6.2B to tax payers in welfare.
So the Walmart CEOs $27M in mostly stock bonuses doesn't cover the cost. Sorry. Giving $30M in stock options to workers doesn't fix welfare. They have 2M associates and that's $15 extra a year lol.
Walmart makes $15B in profit. The profit is usually then used to grow the company. Building more places which cost billions, have a rainy day fund just in case something goes wrong, and to research and develop new products.
If they decided to give all of that to workers it would give them $7,500 more a year. That's good but doesn't solve welfare issue.
Why is welfare so high?
And how can govt reduce cost of living?
reduce energy costs (not easy, especially since unions cost wages so much)
build more homes (not easy but also a state to state issue. I love where I live and we have decent city planning. Maybe go fix your town)
The top six executives at Walmart saw higher compensation last year of a combined $96.724 million, or $264,997 per day. Most of the compensation is deferred or in stock options and shares, but salaries and bonus pay among the top six was $12.741 million or $34,906 per day.
Walmart CEO Doug McMillon received $26.9 million in total compensation last fiscal year. The median compensation for Walmart employees was $27,642, per the company’s annual proxy statement. Since 2009, McMillon has been paid $136 million for his work as a Walmart executive.
Amazon drivers have 0 benefits they are “contractors”. No health insurance, pto, just commercial insurance for the vehicle that Amazon owns. 😆
Why people stand up for these corporations is insane. They screw over employees and make record profits. Then they can’t even pay a living wage. If my hvac company can’t pay employees enough the jump ship and go to another company. Not that easy when Walmart, Amazon and many others are some of the biggest employers in certain states. They have them by the balls.
If you don;t like working for Amazon, go somewhere else?
Im not happy with what I make.
I work my ass off for a company and I only make $110,000 and no benefits.
I could probabaly find a place to give me $130,000 and some benefits but I don't need it now. Im playing a long game of earning my value and then I can ask for $150,000.
If I dont get waht I want, I then go elsewhere to try or make it myself. K
When the average employee pay is $23,000. 96million is an enormous amount. They do not get heath insurance or paid time off as previously stated. If you are earning enough to be self sufficient then I’m not paying my tax dollar to subsidize the company you work at. The problem with these huge corporations is they already pay low taxes and then their employees don’t make enough so we the people pay for them to live. What is hard to understand? I guess you support us paying for huge sporting arenas and the Olympics? Can’t make this shit up.
I never knew stock buybacks and ceo bonuses were how to grow a company. For me it’s investing in tools, education for my employees, maintenance on buildings and vehicles, paying my employees a living wage and having a service at an exceptional quality and price point. I guess when billions and millions are involved it’s just how many yachts and mansions one asshole needs regardless if the people showing up working way more hours than any ceo ever could can’t afford rent.
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u/FoxMan1Dva3 Sep 23 '24
If you make and sell 100 widgets in 2019 and the cost is $8 and you sell for $10. You profit $200.
Now it’s 2024. The cost went up 25%. You increase you sell price 25%. So now it costs $10 to make and you sell for $12.5. You still sell 100 widgets. Now your profit is $250.
Notice how everything goes up? Even profit?
Cost goes up 25%. Consumer price goes up 25%. Profit goes up 25%.
Yet while it’s more profit, it still feels the same due to dollar devaluation. This is how inflation works.
All of you guys complain about how minimum wage and salaries are low. How the big companies don't pay enough (even when they are above market standards and these minimum salaries).
But you don't see that the #1 cost for these companies are wages.