A Tale Of Two Stories!!!! —- The Gap Between Fantasy And Reality!!!!

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Well, this is a shocker!  I just can’t believe this is actually happening!!!!  We had research and everything!!!!!

So, a little over a year ago, one could have read this current, at the time, article at TP.

Why Gap Is Raising Its Minimum Wage To $10

Now, for those who don’t know what The Gap is, it is a clothing outfit …. no, not the people who make the clothes or do the work providing the materials to make the clothes, they’re the people who sell the clothes, stock the shelves, and run the cash registers.  They’re retail.  Supposedly trendy, hipster stuff. 

Clothing retailer Gap, Inc. announced Wednesday that it will raise its hourly minimum wage to $10, a change that will affect 65,000 U.S. employees. GAP employees who are now earning the minimum wage will make $9.00 in June of 2014 and $10 in June of 2015. GAP, which also owns Banana Republic, Old Navy, Piperlime, Athleta, and Intermix, operates in more than 50 countries and employs 135,000 people around the world.

“To us, this is not a political issue,” GAP Chairman and CEO Glenn Murphy said. “Our decision to invest in frontline employees will directly support our business, and is one that we expect to deliver a return many times over.” In a release, the company argues that increasing the minimum wage will help retain “attract and retain great talent” and improve customers’ experience.

While many retailers claim that they cannot afford to pay the minimum wage without firing employees or raising prices, research shows that companies paying low wages stand to benefit from the huge stimulus a wage hike would bring to poor workers who spend most of their income on basic needs like food and clothing. ………

Well, there’s research, and then, there’s reality, which has, apparently, came to call the lunatics at the Gap.

Here’s a now current story from Reuters ……..

Gap to close 175 stores, cut jobs at headquarters

Apparel retailer Gap Inc (GPS.N) said it would close a quarter of Gap specialty stores in North America over the next few years, including 140 this year, potentially affecting thousands of jobs as the company struggles with a slump in sales at its namesake brand.

San Francisco-based Gap also said it would cut 250 jobs at its headquarters.

The company did not say how many employees would be laid off as a result of the store closures. As of Jan. 31, Gap had about 141,000 full- and part-time employees in about 3,700 company-owned and franchise stores worldwide. …….

Well, not only is this sad, but, it’s bewildering!  What about the research?  You know that research Think Progress touted just over a year ago!!!  How come Gap didn’t benefit? 

To the leftards who may stumble across this blog ….

Ladies, it doesn’t matter what the minimum wage is.  It could be $1/hr or $100/hr.  It doesn’t matter.  What matters is how much value a worker provides.  Let me go push a cash register at the Gap.  If they’re going to pay me more than what I’m doing now, I surely would.  (They’d have to raise their minimum wage a bit more, again.)  But, the problem, we then have, is that we then wouldn’t be providing enough actual value. 

What the left doesn’t seem to understand is that some of us must really do things to add value to our economy.  I wish everyone in this country could make $100/hr.  But, if the stock boy made $100/hr, then how much more should the atomic engineer make?  $500/hr? (~$1,000,000/yr)  But, if the atomic engineer and others made that much, and had that much disposable income, how much then, would the prices of the goods and services go up?

But, by that logic, it’s no big deal, right?  Raise minimum wage and everyone’s wages go up, and so it’s a no change end sum, right? ….. Except, that’s not what happens.  Businesses and business models are unique.  Some compete locally, others state wide, others nationally, and still others internationally. 

By raising the minimum wage, on any level, it requires that wages go up on the level it was raised.  For instance, if the small town I currently live in decided to increase the minimum wage to $20/hr, the local factories would have to double the wages of their employees, else, their employees would just go to work at Sonic or the self-serve get-and-go’s. 

But, the problem is, the factories don’t compete locally, they compete nationally, and in some cases, internationally.  Suddenly, to keep their workforce, they would have to double their payroll expenses.  Staying competitive would then be very problematic, because their competitors didn’t have the same requirement to increase the payroll expenses. 

This is what happened to the Gap …. among other things.  The biggest thing that happened to the Gap is that people figured out it was expensive to be trendy with their clothes.  The Gap then increased the expense to be trendy by their minimum wage hike.  Now, we’ve lost entry level jobs, making the poor even poorer.  Nicely done, leftards, nicely done. 

h/t Twitchy

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24 Responses to A Tale Of Two Stories!!!! —- The Gap Between Fantasy And Reality!!!!

  1. gator69 says:

    I just recently became a trillionaire! For about $4, including postage, I received this…

    • suyts says:

      Outstanding!!!! Congrats!!!

    • gator, don’t brag about your billions; somebody will kill you for all that wealth!…

      What goes around- comes around: ridiculing Zimbabwe – similar thing will soon start happening to the dollar of the ”People’s Republic of United States” if Hilary becomes the new El Presidente

      • suyts says:

        Sooner or later, it will happen to everyone in the world because of it. All of the big nations are so vested in the dollar …. it’s horrid. China, India, the EU, even Russia … The US can’t have runaway inflation without the rest having the same. They depend on our spending. They can sell us nothing if our dollar becomes worthless. This is why I’ve documented the QE of Japan, China, and the EU. They’re trying to keep pace.

        • suyts, let me remain you that: US dollar is backed by US gold. If I lend you money to buy MY plastic junk – only one of us is going down the Zimbabwe road. When ”other countries” are buying american bonds -> US is pawning its gold reserves. With american bonds; already prosperous countries are buying oversea’s american interests => american bonds go back home and Obama can shove them up his ass – many people like you, believed that: the world cannot survive and prosper without Rome, but they were wrong…. Your Caligula / Obama is borrowing money from countries where people work for $5 a day, to sustain living standards in US and buy votes.
          Those people are not lending money, because the Americans have nice smile. BUT: for collecting interest on those money at the end of the year. US was doing that same thing for many, many years; now the boot is getting on another foot…

        • gator69 says:

          Ever since, the US government has refused to acknowledge precious metals as money… yet if the Treasury’s financial statements are to be believed, Uncle Sam is still holding 261,498,900 troy ounces of gold. Let’s dismiss the tungsten possibilities for now and presume that it’s real gold. At today’s prices, the value would be about $437 billion.

          Meanwhile, M2 money supply at last count was about $9.8 trillion as of March 12, 2012. This means that roughly 4.46% of US dollars in circulation are ‘backed’ by gold, the rest backed by false promises and goodwill.

          http://www.sovereignman.com/expat/are-there-any-currencies-backed-by-gold/#ixzz3dEJjs96q

        • DirkH says:

          “suyts, let me remain you that: US dollar is backed by US gold.”

          You missed the end of Bretton Woods.

        • DirkH says:

          suyts says:
          June 15, 2015 at 9:57 pm
          “Sooner or later, it will happen to everyone in the world because of it. All of the big nations are so vested in the dollar …. it’s horrid. China, India, the EU, even Russia”

          China just unloaded 120 bn of US treasuries via Belgium.
          http://www.zerohedge.com/news/2015-06-15/china-dumps-record-120-billion-us-treasurys-two-month-belgium
          Nobody knows who bought it. So I guess we all know; the ECB and /or the exchange stabilization fund. Bagholders of last resort.

        • gator69 says:

          It was me, I had to break that note.

        • DirkH says:

          DirkH says:
          June 16, 2015 at 1:05 pm
          ““suyts, let me remain you that: US dollar is backed by US gold.”
          You missed the end of Bretton Woods.”

          One more thought: IF current base money supply were backed fully by Gold AND China had 10,000 tons (they probably have 20,000 but admit only 2000), the price of Gold would have to be 70,000 USD per ounce. Similar for the US. That’s the base money supply as supplied by the central bank, not currency+credit (money created through credit creation at banks).

          Jim Sinclair computed about 50,000 USD a few years back, before the latest QE rounds; Bloomberg has now picked up on the idea.

          The big question is of course – WHY does Bloomberg, financial media MSM, NOW float that idea?

        • suyts says:

          Stefan, the US dollar isn’t backed by gold, anymore. It is fiat currency. “Full faith and credit” is the term used today. It is true, we’re heading towards Zimbabwe, but, as I noted, all the other nations are heading the same way.

          I have no idea why anyone buys US bonds, today. The interest paid is nearly non-existent. But, foreign nations still do. ~ 1/3 of our debt is held by foreign interests, but, that’s remained fairly steady over the last few years, with the Chinese and Japanese pretty much holding steady their buying and selling … although, as Dirk points out, the Chinese just dumped quit a bit of our bonds. But, if their pattern holds true, they’ll pick some more up in a bit.

          But, here’s what I’m saying …… no one is willing to take the correction to dethrone the USD. Yes, between our central bank and our government, we should have the most horrid inflation. However, the more we print, the more the other entities print. Japan has probably printed the most (in proportion to the size of the economy) than anyone else, but, China is printing like mad, as well. (This is to keep their currency cheaper than the USD). The EU has had their own form of QE and the Euro has fallen quite a bit on its own merits. About the only nation which doesn’t seem to be engaged in this printing madness is Russia, but, they’ve run into a lot of problems with the drop in energy prices. China has tried on a couple of occasions, but, each time they’ve tried, their economy drops. So, they print more money and invent jobs for their people to do with the printed money. And, that’s the problem.

          I certainly agree, the US is in a headlong rush to be like the end days of Rome. But, everyone else seems vested in having the US buy their junk, rather than actually doing stuff for themselves to buy. Again, China has tried to change from being such an export economy, but, they fail at it each time they try. The reason is that they can’t do much without selling to the US. Sure, they can sell to other nations, which have no money, but, that doesn’t get them very far. It’s like trying to open a market in western China, or Mongolia. Europe is also a large customer of China’s, but, well, Europe has their own economic troubles, and it isn’t going to get better there, either. Maybe if the price of oil spikes, once again ….. but, the US is positioned quite well when that occurs again.

        • DirkH says:

          James, Russia and China work actively to get rid of the Dollar – after the monetary reset ((c) LaGarde) was sabotaged by the US (it would have been a rearrangement of currency exchange rates) Russia and China now try to establish their own trading systems – Renminbi swap lines, Eurasian Trade Union. When less and less of world trade happens in Dollars, central banks will be forced to keep more Renminbi (or its bonds) and less USD (or its treasuries) as reserves.
          This is all happening. Trade between China and Australia and CHina and Canada already happens in Renminbi. More and more US companies find that they have to pay deliveries from China in Renminbi. China increases the pressure smoothly, not abruptly, to avoid causing a shock, I guess.

        • DirkH says:

          As to who buys treasuries – and PIIGS debt, and Japanese debt – look no further than the central banks of the West. Together they are monetizing i.e. buying more than 100% of new debt issuance of the West.

          It’s the full Ponzi; and once it collapses, the migration patterns will reverse! As there will be no more Free Stuff.

        • suyts says:

          Heh! If Russia and China are trying, they’re not doing a very good job!

          Yes, the western nations are engaged in a full circle jerk. However, China participates, as well. And, this is why they fail. The can’t because their economic model depends on the west to have money to buy China’s crap. If the west becomes bankrupt, so, too, does China. Indeed, they’d have a larger unemployment problem than anyone else.

          The US gained its position by being self-sustaining, first, and then selling our excess to people abroad. In only this manner will the US be supplanted. But, they can’t/won’t.

          In order of importance …. food, energy sources, other natural resources (such as wood, REE, copper, and the like), industrialization, and technology. All else is window dressing. Excluding an outright hostile invasion and takeover of the US, nothing else matters.

          The rest is noise. The US is, and will continue to be a fertile land. We produce more food than we could ever use ourselves. We have more energy reserves and produce more energy than any other nation in the world. Our other natural resources are in abundance. We produce more and consume more, by far, than any other nation in the world.

          There are only two powers which could supplant the US as the leading economic power of the world. God Almighty, and the people of the US. Russia and China can do as they will. It won’t alter what we already have, nor, our capacity.

        • gator69 says:

          One EMP attack could change all that.

        • DirkH says:

          “The rest is noise. The US is, and will continue to be a fertile land. We produce more food than we could ever use ourselves. We have more energy reserves and produce more energy than any other nation in the world. Our other natural resources are in abundance. We produce more and consume more, by far, than any other nation in the world. ”

          Well, until you rebuild your industry, you will have to import industrial goods though. If the USD is devalued – say, by 30%, and then again by 30% , and it becomes impossible to just pay bills with more printed money, you will have to EXPORT agricultural goods to pay for the imports.

          THis is what will happen if the USD loses its world trade currency status. I’ve no doubt the US will survive and even re-industrialize but in the meantime it’ll be much more expensive to get all those goodies.

        • suyts says:

          But, Dirk, who or what is the USD going to be devalued against on such a scale? Not the Yuan, not the Euro, not the Yen ….. Russia’s deficit is rising faster than anyone anticipated … the value of the USD is relative to the value of other currencies. Everyone else is printing as fast as the US. Until they stop nothing will change. And, they won’t stop.

        • DirkH says:

          suyts says:
          June 16, 2015 at 6:29 pm
          “But, Dirk, who or what is the USD going to be devalued against on such a scale? Not the Yuan, not the Euro, not the Yen”

          DXY, the USD index.

          ” ….. Russia’s deficit is rising faster than anyone anticipated”

          I don’t think so. Where do you have that from?

          ” … the value of the USD is relative to the value of other currencies. Everyone else is printing as fast as the US. Until they stop nothing will change. And, they won’t stop.”

          As soon as Russia and China introduce a Gold backing for their trade currency it will not matter how much paper money any nation prints. Print more, pay more.

      • cdquarles says:

        Stefan,

        Today, since 1972, the US dollar is partly gold -> IMF SDRs, partly oil ‘backed’; but mostly ‘sovereign debt’ backed. Everyone buys US Treasuries, whether they want to or not. Inside the US, we have to use them to pay our taxes. Oh, the Treasury would take the gold, but it wouldn’t and doesn’t have to credit your tax account for that as ‘legal tender’; so you’d still have to have ‘dollars’. Our coins still have copper, silver and nickel in them; but it has been greatly diluted out, by Acts of Congress (which has this power) over the years. The oil backing dates to a treaty negotiated with the Saudis and this treaty is partly why both the US and the Saudis do seemingly ‘bone-headed’ things.

        Remember, if any nation’s currently circulating money/money substitute is the ‘world’s reserve currency’, then that nation must supply the rest of the world with said currency. Gold is great as a commodity money. It is rare, looks nice, doesn’t tarnish, very unreactive, and most of it that has even been mined and refined is still out there. It is still a physical chemical, so you can counterfeit it; and being the second densest ‘natural’ metal, a little of it goes a long way. On the other hand, trade flows of gold (and to a lesser extent silver and copper, which are in the same periodic table group) are costly to do. That’s why ‘warehouse’ receipts were readily taken as a substitute, at a discount. So if, or when, the Chinese are this nation, they’ll find themselves, one day, where the US is now. So has it been, so it is, so ever it will be; until God changes us.

        • Jim Masterson says:

          >>
          It is still a physical chemical, so you can counterfeit it;
          <<

          Counterfeit gold? As in iron pyrite? Alchemy? You’re confusing me here cd.

          Jim

        • cdquarles says:

          Pyrite, brass (special alloys), gold plated osmium or tungsten, and so forth.

  2. suyts, Chinese are buying american bonds – to increase dollar’s ”buying power” In the past used to be called ” dumping goods” – when dollar is overvalued ” dumping goods to destroy your industries” is not noticed. AFTER they will increase the price of their goods; when american &europien industries go belly up – even then Chinese goods will be a bit cheaper, not to be worth starting new industries in US &Europe.

    fact#2: when Chinese worker starts getting from $6 to $10 dollars a day => they will rejoice === in the same time when US &European workers get $12 a day -> anarchy will start. Hillary knows that: socialist prosper the best, ”when majority needs help” => then they will help her to kill the remaining businesses, by using CO2, or by looting.

    The only world leaders for free economy and democracies are, Abbot in Australia, Putin and maybe the Canadian – soon Abbott will be replaced in his own party by a Warmista.. Angela Merkel and Cameron are example when the right wing party becomes just another left wing. No bird can fly very far by two left wings and nothing on the right side. it’s called: incognito dictatorship. as a coincidence, Rupert Murdoch is getting replaced by a Warmist son. You people think as supporting two football teams; ”if they win this year, we’ll win next” WRONG!!! They are replacing people in NASA, CIA, judiciary and in the rest of the bureaucracy – but the phony skeptics think that: they didn’t replace ordinary workers that are collecting temperature data…?! So; the skeptics religiously believe in the ”global” temperature data dished in-front of their noses and keep comparing those numbers = exactly as if children were counting: ”how many grains of oaths Santa gives to Rudolf on different days…

    Even children grow out of that after a year or two; same as: when reasonable person realize that something doesn’t work against the enemy, realizes that must be a reason for it AND changes tactic. Not the ”skeptics” they have a good grip on their pagan beliefs, same as a bling at a lamppost… because of that, the future has being decided already

  3. suyts and the rest of you guys, here is some reality, from my blog:

    Warmist are ”not trying to prevent global warming”; they know that global warming doesn’t exist – they are ”pretending” only – so when the non-existent global warming doesn’t show up => Marxist under green camouflage will demand to be obeyed and expenses paid to the jet-setters for the next 100years. Exactly the same as: -”if you succeed to con the people that: the moon will slam into the earth before next Christmas, BUT: if the public pays you billions and obey what you say – the moon will stay where she is -> when the moon doesn’t slam into the earth; you will be a hero and must be given billions of $$$ every year and worshiped for next 100 years. That’s the whole trick!!!

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