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Thread: 7bn @ 2013 vs REAL Cumulative cost of "Fast food Workers" to US Federal & State governments ... maths help needed ..

  1. #1
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    Default 85 bn +? @ 1992 - 2013 : REAL Cumulative cost of "Fast food Workers" to US Federal & State governments ... maths help needed ...

    Cumulative cost of "Fast food Workers" to US Federal & State governments

    ... maths help needed as it has been quite a while since I have had to fiddle with a spreadsheet ...


    Factors I know that need accounting for

    -- The fast food sector was not destructive to the nations health 1901 to 1960, so ignoring the time segment

    -- The US fast food sector has grown since 1970, but backward imputations would have to be for shrinkage

    -- Wages have deflated by a factor of 10 perhaps for this sector

    -- Silver and Gold (50/50) might be needed to normalize the inflations and deflations

    -- Mergers & Acquisitions need to be accounted for as well as bankruptcies in the sector

    -- Subsidized wheat, beef, chicken, ... costs might be tangentially useful in the accounting maths

    -- A probable 1970 - 2013 number : 511 billion USD in cost subsidization = the US state and federal governments in principal own these entities in totality as no other way exists to pay off the debt


    SOURCES

    -- http://www.dailyfinance.com/2013/10/...illion-a-year/

    -- https://gawker.com/study-low-fast-fo...-pe-1445671762

    -- http://laborcenter.berkeley.edu/publ...rtywages.shtml

    -- http://laborcenter.berkeley.edu/publ...erty_wages.pdf

    -- http://www.nelp.org/page/-/rtmw/uplo...rt.pdf?nocdn=1
    Last edited by billstew; 12-06-13 at 08:24 PM.

  2. #2
    Forrest is offline iTulip Ambassador, Select Premium Member
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    Default Re: 85 bn +? @ 1992 - 2013 : REAL Cumulative cost of "Fast food Workers" to US Federal & State governments ... maths help needed ...

    Quote Originally Posted by billstew View Post
    Cumulative cost of "Fast food Workers" to US Federal & State governments

    ... maths help needed as it has been quite a while since I have had to fiddle with a spreadsheet ...


    Factors I know that need accounting for

    -- The fast food sector was not destructive to the nations health 1901 to 1960, so ignoring the time segment

    -- The US fast food sector has grown since 1970, but backward imputations would have to be for shrinkage

    -- Wages have deflated by a factor of 10 perhaps for this sector

    -- Silver and Gold (50/50) might be needed to normalize the inflations and deflations

    -- Mergers & Acquisitions need to be accounted for as well as bankruptcies in the sector

    -- Subsidized wheat, beef, chicken, ... costs might be tangentially useful in the accounting maths

    -- A probable 1970 - 2013 number : 511 billion USD in cost subsidization = the US state and federal governments in principal own these entities in totality as no other way exists to pay off the debt


    SOURCES

    -- http://www.dailyfinance.com/2013/10/...illion-a-year/

    -- https://gawker.com/study-low-fast-fo...-pe-1445671762

    -- http://laborcenter.berkeley.edu/publ...rtywages.shtml

    -- http://laborcenter.berkeley.edu/publ...erty_wages.pdf

    -- http://www.nelp.org/page/-/rtmw/uplo...rt.pdf?nocdn=1


    Daily Finance is off quite a bit on their take home pay...Add FICA, and the take home pay on $8.53/hour on 26 hours per week is way below the poverty level. In fact, the take home pay after FICA and Federal Tax alone will be $9,878/year.

    " At the average wage, a Walmart cashier working 26 hours per week would bring home $11,532, placing him or her $42 above the poverty line for a single person household." Daily Finance

    That's okay...the poverty level is established on gross pay, not net.

    The Federal poverty line for an individual is $11,490, true.

    26 hours @ $8.53/hour gives a gross of $11, 532 and a net of $9,878 after FICA and Federal taxes ONLY. That's $1654 paid to the Feds. That covers a good chunk of the equivalent of a Bronze Health plan under Obamacare - valued at $2,535 per year. (or in CA - Medicaid with personal costs of 40% of care) . Hmmm. And that Fast Food Worker is technically still above the poverty level of $11,490. That's terrific news!

    Of the 3.5 million people work in the fast food industry in the US, kick out a little over 20% of that number for managerial staff, and with 7 Billion, you've paid for those underpaid workers Obamacare. Is that the subsidy you are talking about?

    No? Oh, the Berkeley study says only 3.9 Billion is Health care...the rest is Welfare...mostly food stamps (1 Billion) and earned income tax credits (1.9 Billion). But Obamacare costs $2535 per person Typical Bronze health care plan... So the numbers are going to change. Health care subsidies will rise from 3.9 Billion to 7.8 Billion. Assuming the rest of the subsidies stays about the same, the total goes up to about 11 Billion.

    So, with Obamacare going into effect, the Subsidy will go up.


    I guess this means the Fast Food Workers need to be paid more.


    Let's think a moment...$12.50 an hour, at 26 hours per week will raise the gross income to $16,900 per year. That fast food worker will pay in $2791 in Federal Taxes...well, some is FICA, but there won't ever be Social Security for those people, so it all just goes into the General Fund, right?

    Hmm. Subtract the cost of Obamacare ($2535/year), and you still have some tax money left over. Cool. Those Food Stamps and Earned Income tax rebates will be partly paid for.

    And the Fast Food People will just have to raise prices, or something. Hmm...that would be bad for business.

    Or cut the dividend to the stock owners. Hmm...stock will sell off, and might put the company into trouble...no Board of DIrectors is going to do that on purpose.

    Or they could all use computer ordering, and cut the jobs in half, so they can still be really competitive, and keep their owners and their customers happy.

    But the government will have to pay welfare benefits and Obamacare for those people that lose their jobs when wages are forced up to $12.50 an hour, and since they are not making money, they are not paying taxes...about half of the required workers could be cut with computers and robots, and a little less personal service.

    But that's at least 40% of the workers of the Fast Food Industry...that will not do anything for the unemployment numbers.

    That's 1.4 million people out of a job...and moving to welfare. The Cato Institute says that's an average payout of $28,500/year...it's just not in cash. Housing subsidies, Medicaid, Foodstamps/WIC/School Lunches, and some cash payments of perhaps $200.00 to $300.00 per month per person. Yes, the more dependants you claim, the better the payout, and the longer you are on Welfare, the more likely you are to get housing provided.

    But someone, somewhere, is getting that $28,500 a year in subsidies. With 1.4 million more people out of a job at the higher wage of $12.50/hour, at $28,500/year in welfare payments...that works out to $39.9 Billion Dollars.

    That's a big jump from 11 Billion to 39.9 Billion in federal subsidies to someone. Not to mention 1.4 million people not paying about a 100 million in Federal taxes either to offset any of the cost.

    This is not going to turn out well.




















  3. #3
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    Default Re: 85 bn +? @ 1992 - 2013 : REAL Cumulative cost of "Fast food Workers" to US Federal & State governments ... maths help needed ...

    Forrest:

    Much too rational. Where's your moral indignation/superiority?

    Disappointing . . .

    ;)

  4. #4
    Forrest is offline iTulip Ambassador, Select Premium Member
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    Default Re: 85 bn +? @ 1992 - 2013 : REAL Cumulative cost of "Fast food Workers" to US Federal & State governments ... maths help needed ...

    Quote Originally Posted by don View Post
    Forrest:

    Much too rational. Where's your moral indignation/superiority?

    Disappointing . . .

    ;)

    I know...so sad.

    My overflowing emotions...my great empathy for the poor of the world, my sympathy for the downtrodden...all stomped to dust under the reality of facts.

    Truth has made me heartless...uncaring...realistic.

    My friend, weep for me.

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