Signarama Jockey
New Member
Agreed. It is a tightrope.
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Raises?
- Thread starter Notarealsignguy
- Start date
Gino
Premium Subscriber
As supply and demand got wonky a coupla years ago costs of goods had to go up. Then, as employees bargained for higher pay, companies had to raise prices, once again.
Government can help reduce inflation, by cutting spending and raising taxes.
Back in 1972, when I started making signs for all the local food stores and some grocery chains, the cost of a pound of hamburger was 67¢. I bought my first brand new 1976 dodge van, with lotsa bells and whistles and fully chromed for under $4,000.
Signarama Jockey
New Member
More and more I hear stories like what you just said. People looking back through their lives or their parents lives and realizing how much prices have risen. The ones that really get me are the stories of men who worked one job and were able to support a whole family of like 4 kids and their wives didn't have to work and they owned a house and a car... makes me mad, actually. I guess you can make the argument that we all have access to amenities that would seem like magic to people in 1972, but still...
And, I would say that the definition of inflation has changed over time, and I think that was by design. A long time ago inflation was defined as an increase in the money supply. More money chasing fewer goods led to higher prices. These days, inflation seems to focus entirely on the higher prices. It's like hearing about someone who bled to death and then later finding out that they'd been stabbed - kind of burying the lead. But, I'm not an economist, and modern day economists hold to the current definition. I will refrain from opening the "causes of inflation" can of worms any further than that.
Inflation happens. We've just seen significant inflation due to the fall out from Covid combined with corporate greed. Generally speaking, the only solution to this sort of problem is attacking the problem from multiple directions. There's no one solution.
Regarding raises, there's no one answer. You can go on indeed or something like that and see what the competition is paying to get a market value. You can also multiply their current wage by how much you've typically increased your product costs over the last year or so. Lastly, you can just throw logic to the wind and just do what feels right in your gut. I'm pretty indecisive, so I'd do all 3 and then average it out.
Regarding raises, there's no one answer. You can go on indeed or something like that and see what the competition is paying to get a market value. You can also multiply their current wage by how much you've typically increased your product costs over the last year or so. Lastly, you can just throw logic to the wind and just do what feels right in your gut. I'm pretty indecisive, so I'd do all 3 and then average it out.
Gino
Premium Subscriber
When I was a teenager, minimum wage was around $1.25 an hour. Many people could almost make a living on minimum wage back then, too.
People do not wanna pay their dues anymore. They want what everybody else has, but don't wanna wait for it. They want it..... NOW !!! Ya have people, like yourself, who take bits and pieces of history and play with the numbers until they fit your needs. Well, that's what the politicians and big pharma do, too. Manipulation at its' finest. If you don't like what you're getting or how you're being treated, move the heck on and keep job hopping til ya find one ya like and can deal with, instead of all this bellyaching. I frickin' dispise whiners.
People do not wanna pay their dues anymore. They want what everybody else has, but don't wanna wait for it. They want it..... NOW !!! Ya have people, like yourself, who take bits and pieces of history and play with the numbers until they fit your needs. Well, that's what the politicians and big pharma do, too. Manipulation at its' finest. If you don't like what you're getting or how you're being treated, move the heck on and keep job hopping til ya find one ya like and can deal with, instead of all this bellyaching. I frickin' dispise whiners.
Signarama Jockey
New Member
Interesting side note, a Washington quarter minted before 1965 contains about $4.32 in silver.
So, if you got paid that $1.25 in quarters, you would be earning about $21.60 in today's dollars per hour.
Texas_Signmaker
Very Active Signmaker
Signarama trying to give us economic lessons. What's your net worth signarama jocky?
Putting $ in savings is loosing money... any other option is better. A certain amount of inflation is OK.... The government targets 2%, meanwhile you can earn an average of 10% a year on ETF investments. Inflation also devalues debt... so a monthly mortgage on a house you bought in 2004 is probably less than a Nissan Versa car payment today. You make more than you did in 2004, so you can afford that pound of meat, and leave your economic lessons to your kids.
Signarama Jockey
New Member
This thread was a question about how much should raises be. I answered it. That was not an economic lesson.
yes 8% that's why things that were on the 99 cent menu 1-1/2 years ago are $3.79 nowNot it wasn't, it was 3.4% for 2023.
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U.S. Inflation Rate by Year: 1929 to 2024
By looking at the inflation rate each year, you can gain insight into how prices changed and how events around the globe impacted the average U.S. consumer.www.investopedia.com
Gino
Premium Subscriber
Talk about staying on track ?? Did it ever occur to you, people were not paid at the end of each hour ?? We got a check at the end of the week or second week. Back then they had 50¢ pieces, so very few quarters ended up your your palm. Besides, can you imagine how heavy everyone would be, if they got paid in quarters, regardless of their worth in silver ??
Signarama Jockey
New Member
Interesting side note, a pre-1965 Franklin half dollar has $8.65 worth of silver in it. So, if you got paid in 50 cent pieces, someone making that $1.25 minimum wage would earn (on average) $21.65 worth of silver (in today's dollars) per hour.
I'd GLADLY carry the silver.
JBurton
Signtologist
This is one of those, if only I had a time machine investment strategies, that really neglects the 'how do I live off nothing from pre-1965 to current times' issue of it all. Why bother going back 50+ years and messing with pocket change as opposed to going back, oh I don't know, 15 years and buying amazon stock? Or just 2 years buying microsoft.
Gino
Premium Subscriber
Because back then, things just worked far better. We had the strongest nation in the world in all areas and were the world's leader in almost every aspect, except the space race. Then comes along computers and the internet and the whole place goes nuts.
Texas_Signmaker
Very Active Signmaker
Fast food operators have been complaining for years that dollar menus were loosing $. I remember seeing articles about it 15 years ago. The goal was to entice people to go in and while looking at the menu, opt for a higher price meal. It's a loss leader... Grocery stores did it with milk and eggs... Keep them artificially low so you think they are a deal then you get raped on everything else.
Notarealsignguy
Arial - it's almost helvetica
You stated an unpopular opinion that I agree with wholeheartedly, raise taxes. You will see more investment in facilities, people, equipment etc when there is a strong monetary motivation to spend excess earnings. At the current rates, there isn't a whole lot of incentive to spend or expand, start clipping 60+% for anything over $300k and then that write off becomes something with some teeth. It could possibly even make all these mergers and acquisitions a less attractive option than good old fashioned organic growth. We have big problems and nobody that matters has the political cajones to address this heard of elephants in the room. Everyday we hear of more companies buying out their competition, that is not a recipe for economic growth by any stretch.
Gino, your van adjusted for today would be $30k so till a bargain.
Notarealsignguy
Arial - it's almost helvetica
I posted the actual number, where do you get 8? You can't pull 1 good out of the basket and use it as an argument that the actual rate is wrong. C'mon man, you how this works.
Not directed at you Netsol but I wish the news would shut up about inflation. Not because it should be hidden but every tom dick and harry that doesn't know squat about economics now thinks they're some sort of economic genius. One thing that people either don't get or don't want to hear is that your standard of living will never ever be bumped up through raises. The only way to increase it is to learn more, gain more skills, education etc. Earnings and costs rise up in unison, it's a basic concept. Now we have a country full of butt hurt people that make more money but can't afford to buy more than they could before but that is how it works. When the electrician gets bumped out to $45/hr, do they really think that they exist in a vacuum and by good fortune they should be able to buy the house next to their lawyer now? No, the lawyer says this is BS, my blue collar neighbor is making what I am so I'm doubling my rate, then the PA wants more, and the secretary wants more, now they run on over to buy the house they always wanted just to find out that it went up and is just as unaffordable as it was before.
Signarama Jockey
New Member
Notarealsignguy
Arial - it's almost helvetica
That is how a lot of asset heavy business owners have made their money. A 20 year old used crane will bring damn near the same money today as it cost new. So run 10 of these things for 20 years, sell out and you make a mint.
DL Signs
Never go against the family
That's one of the biggest problems today, that competition is what kept prices in check. Anti-trust laws have been whittled away to nothing, so it's a free for all.
Johnny Best
Active Member
Guy comes home after working all day at Notarealsign shop...."Manuel, did you get that raise from your boss?", "No, Maria, the Gringo is a cheap Bastarda". "He is mulling it over on how much to give me" "Well Manuel, I am tired of working all night for a couple of bucks also". " Si, Maria, I will talk to him tomorrow and tell him if I do not get a raise I am leaving, I think Carlos needs help at the roofing company".