Valuetainment - June 12, 2019


Episode 318 - Minimum Wage Debunked - Why Amazon & Walmart Love The Idea


Episode Stats


Length

16 minutes

Words per minute

195.08705

Word count

3,272

Sentence count

348

Harmful content

Misogyny

8

sentences flagged

Hate speech

4

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

minimum wage is a myth. Minimum wage is math. Living wage is not a myth! Minimum wage should be $15 or $7.20 an hour, not $10 or $15.00 an hour.

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.000 30 seconds, one time for the underdog, ignition sequence start, let me see you put em up, reach
00:00:09.240 the sky, touch the stars up above, cause it's one time for the underdog, one time for the
00:00:16.240 underdog.
00:00:17.260 I'm Patrick Biddy, your host of ITEM, and today we're going to talk about a topic you keep
00:00:20.500 hearing about, you know, on all these political debates about minimum wage, and I'm going
00:00:24.820 to take a complete different angle than maybe you have never seen before.
00:00:28.380 The first thing I want to do is I want to study the history of minimum wage and what kind
00:00:32.400 of presidents raised the minimum wage.
00:00:34.680 More Democrats, more Republicans, how did it work out?
00:00:37.420 And you're going to be shell-shocked what Barack Obama and Ronald Reagan have in common when
00:00:42.120 it comes down to raising the minimum wage.
00:00:44.080 Pretty strange thing, but let's get right into it.
00:00:45.880 October 1938, FDR introduces the minimum wage for the first time in America, 25 cents per
00:00:51.840 hour, which is in today's dollars, $4 an hour.
00:00:54.760 A year later, he raises it again as a Democrat, raised it twice, Truman twice as a Democrat,
00:00:59.460 Eisenhower once as a Republican, Kennedy twice as a Democrat, Johnson twice as a Democrat,
00:01:04.400 Nixon once, Ford twice, Carter four times during one term, which during his time, the economy
00:01:12.600 in America was in shambles.
00:01:14.240 It cost him the re-election, Ronald Reagan gets elected, wins 49 out of 50 states, and
00:01:21.020 you ready?
00:01:21.800 Ronald Reagan never once raised minimum wage, and the economy blew up during his time.
00:01:27.460 George Bush Sr. raised the minimum wage twice as a Republican, Clinton twice as a Democrat,
00:01:32.780 GW, the son, twice as a Republican.
00:01:35.340 Ready?
00:01:36.220 Barack Obama is the only Democratic president that was a two-term president who raised the
00:01:42.680 minimum wage only once.
00:01:44.400 Since FDR, let me say this again, he is the only Democratic president that raised the minimum
00:01:49.840 wage only once in two terms, and the market still recovered.
00:01:55.340 Minimum wage, to me, is a myth.
00:01:56.900 I'll explain why.
00:01:58.460 Living wage is math.
00:02:01.200 Market value is a path.
00:02:03.380 Let me explain.
00:02:04.940 Minimum wage is a myth. 0.97
00:02:06.700 How do these politicians come up with $15 an hour? 0.68
00:02:09.920 I actually want to know.
00:02:10.800 How did you come up with it?
00:02:12.600 And it's $15 an hour in one city, the same as $15 an hour in another city.
00:02:18.400 Watch this.
00:02:19.420 First of all, $15 an hour at 40 hours a week, 52 weeks in a year, is $31,200.
00:02:27.900 That's poverty level, is what you're making.
00:02:30.720 So $15 an hour doesn't affect anybody.
00:02:33.000 By the way, I run a business.
00:02:34.400 I have nearly 100 employees here that work for me.
00:02:36.560 In the state of Texas, my minimum wage for Texas is only $7.25.
00:02:40.500 There's only two people I pay less than $15 an hour, and they pay $13 an hour.
00:02:44.720 They've only been with me for 60 days.
00:02:46.460 I want talent to expect more, and I want a better pool of people coming here, right?
00:02:50.360 But that's a choice.
00:02:51.300 Not by force.
00:02:52.220 I don't pay $7.20.
00:02:53.340 I would never pay $7.20 because I want my employees to be able to have a good life.
00:02:56.960 They survive.
00:02:57.480 They perform better for me.
00:02:58.600 Not by force.
00:02:59.740 By choice.
00:03:00.340 But watch this.
00:03:01.080 Let's talk about this minimum wage.
00:03:02.760 15 times 40 times 52 is $31,200.
00:03:06.060 Living wage is a mathematical formula.
00:03:08.500 There's an organization out there called Economic Policy Institute, EPI.
00:03:12.700 You can click on a link below, and when you go to this website, you can pick whatever city
00:03:16.640 you want to live in to find out what is the living wage, cost of living, in that city based
00:03:23.380 on the economy of that city, the cost of living of that city.
00:03:26.880 You see, that I trust because it's basic math and data versus minimum wages, $15 an hour.
00:03:33.680 These people, we need to pay more.
00:03:35.420 It's not enough pay.
00:03:36.760 And some people that are naive, they're like, oh my gosh, this guy sounds so noble.
00:03:40.440 But in reality, whenever a politician from the left or the right gets up and just starts
00:03:44.640 throwing numbers like that out there, you know what they're doing?
00:03:47.060 They are questioning our intelligence.
00:03:49.100 And I don't like that.
00:03:50.000 And I don't think you do either.
00:03:51.520 Sounds noble, but what they're trying to say is, no one's really going to go out there
00:03:55.380 and do a research and find out it's really living wage, not minimum wage.
00:03:58.860 So let me show you some data.
00:04:00.520 Let's take minimum wage, and let's look at the top 10 cities in America to see how much
00:04:04.560 buying power your $100 has in these different cities.
00:04:08.940 I got the top 10 cheapest cities in America to live in, and I got the top 10 most expensive
00:04:13.660 cities in America to live in.
00:04:14.880 Let's take a look at the cheapest ones.
00:04:17.140 Brownsville, Texas.
00:04:18.460 Ready?
00:04:19.060 $100.
00:04:19.440 In Brownsville, Texas, to go buy what you buy with $100, the buying power in Brownsville,
00:04:25.500 you only need $85, because the cost of living there is 14.9% below the market.
00:04:31.560 So if you spend $100 somewhere, you only need $85 over here, okay?
00:04:34.740 And then I have the income there.
00:04:35.880 The average income is $34,000.
00:04:37.820 You know, the average home is $83,000.
00:04:40.080 $15 an hour in Brownsville?
00:04:43.500 You are doing good.
00:04:44.900 You're okay, but not in a different city.
00:04:47.060 So Oklahoma City's at $15.1, Jonesboro, Arkansas, $15.5, Memphis, $6.7, Knoxville, $17.8, Wichita
00:04:53.600 Falls, $18.3.
00:04:54.860 You see how this goes, $25, $21.4, Convoy, $21.8.
00:04:58.520 Look at McAllen, Texas, 23.9%, you're $100.
00:05:03.020 The buying power to match $100, you need $76 in McAllen, as you need $100.
00:05:09.680 Meaning, if you go to dinner, the cost, transportation, everything together, you would need $100.
00:05:14.120 In McAllen, Texas, you only need $76.
00:05:17.520 $15 an hour in McAllen, Texas, you may be rolling.
00:05:20.900 You may be having a comfortable life.
00:05:22.760 But let's look at the top 10 most expensive cities in America.
00:05:25.280 Ready?
00:05:25.940 Number 10, San Diego.
00:05:27.700 Cost of living, $46.1.
00:05:30.260 You know what it means.
00:05:31.720 $100 to go to a restaurant in San Diego, it's going to cost you $146.10.
00:05:38.940 Average home value, $488.
00:05:40.440 Big difference between $83 and $488.
00:05:43.200 LA, 48%.
00:05:45.080 Boston, 48%.
00:05:46.260 Seattle, 49%.
00:05:47.120 Oakland, 49.5%.
00:05:48.180 DC, 55.7%.
00:05:49.260 Brooklyn, $82.
00:05:51.840 $100.
00:05:53.380 You need $182.
00:05:54.740 Honolulu, $883.
00:05:55.860 San Francisco, $92.9.
00:05:57.080 Ready for Manhattan?
00:05:58.920 That $100 dinner you want to go to?
00:06:00.580 In Manhattan, it's going to cost you $238.60.
00:06:03.480 Let me say that one more time.
00:06:04.300 That same $100 dinner, it's going to cost you $238.60.
00:06:09.600 The average home value in Manhattan is $871,000.
00:06:16.280 Ten times more than the one in Brownsville, Texas.
00:06:20.980 So $15 an hour, what does it really mean in Manhattan?
00:06:24.060 I thought these politicians were brilliant when they would get up and say,
00:06:26.960 $15 an hour is going to make a big impact.
00:06:28.840 Really?
00:06:29.220 You know what the rent is in Manhattan?
00:06:32.300 The minimum average rent is $4,559 a month.
00:06:37.740 Let me say it again.
00:06:38.920 $4,559 a month is rent.
00:06:41.920 That's after taxes.
00:06:44.020 That is nearly $60,000 just for rent after tax.
00:06:49.680 Pre-tax is $100,000, give or take.
00:06:52.960 To go grocery shopping in Manhattan, 40% premium.
00:06:57.760 Transportation is 30% higher than anywhere else.
00:07:01.100 Movie tickets for you and your family, 50% higher.
00:07:04.280 So how do they come up with this minimum wage number?
00:07:06.700 Oh, it's just a guessing game.
00:07:08.340 They're sitting there saying, what should I say from stage that's going to get the vote?
00:07:12.080 Why don't you, you know, because there's more people that don't make a lot of money.
00:07:15.540 Just talk about raising the minimum wage.
00:07:17.100 You'll come across as noble and you care for people.
00:07:19.500 You'll get elected.
00:07:20.760 Brilliant idea.
00:07:21.980 What number should I say?
00:07:23.520 How about you say 12?
00:07:24.700 Let's say 15.
00:07:25.500 Let's be more aggressive.
00:07:26.220 That's awesome.
00:07:28.160 Let's do it.
00:07:29.580 I think we need to raise the minimum wage $15.
00:07:32.440 What a noble human being.
00:07:34.200 Let's make him our president.
00:07:35.300 And people fall for it.
00:07:36.260 We're going to raise the minimum wage to a living wage, 15 bucks an hour over the next
00:07:42.080 few years.
00:07:43.580 Who's to really benefit if we raise the minimum wage? 0.79
00:07:45.540 You ready?
00:07:46.340 You know how a lot of times you'll hear politicians say things like, Walmart, it's unfair what
00:07:51.060 Walmart is doing.
00:07:52.060 They're putting small business owners out of business.
00:07:55.120 Really?
00:07:55.740 Walmart's doing that?
00:07:57.020 Amazon.
00:07:57.840 It is unfair what Amazon is doing.
00:07:59.780 They're putting so many small business owners.
00:08:02.140 Roger's bookstore went out of business.
00:08:04.460 Johnny's liquor store went out of business.
00:08:06.760 Bobby's market went out of business because of Walmart and Amazon.
00:08:09.760 Wait a minute.
00:08:11.260 Wait a minute.
00:08:12.220 Wait a minute.
00:08:13.320 Let me ask you a real question here.
00:08:15.560 Who can really afford to pay higher wages if they were to raise the minimum wage?
00:08:20.980 Walmart or Bobby's market?
00:08:25.020 Okay?
00:08:25.680 Bobby's market profits 10 grand in a month.
00:08:28.220 20 grand in a month.
00:08:29.440 He can't afford to raise the minimum wage because he's out of business.
00:08:33.320 He's in a small city.
00:08:34.900 Walmart doesn't care.
00:08:36.320 Every single time they raise the minimum wage, just so you know, Amazon, Walmart, Apple,
00:08:42.680 Google, all these guys are sitting there saying, awesome, keep doing it.
00:08:46.640 Because all these small business owners are going to go out of business and we get them 1.00
00:08:50.360 all.
00:08:50.640 Because we can afford to raise because all we're going to do is what?
00:08:53.760 You raise minimum wage.
00:08:54.900 We do the basic math.
00:08:56.240 This just dropped off our profits by 4%.
00:08:58.600 Let's raise the cost of our product by 4%.
00:09:00.920 We used to sell it for $120.
00:09:02.640 Now let's sell it for $125.
00:09:04.720 Thank you, politicians.
00:09:06.320 You put out our competitions.
00:09:07.800 You're the best.
00:09:08.700 We love you so much.
00:09:09.840 So don't be fooled by it next time when politicians say $15 for the people.
00:09:13.720 $15 an hour is really for the big corporations.
00:09:16.300 Very basic math.
00:09:17.280 I'm not telling you anything that sounds out of the ordinary.
00:09:19.420 That's just kind of how math works.
00:09:20.620 So let's talk about the last one.
00:09:21.560 Market value.
00:09:22.120 This is what I would like to see our leaders, politicians, people running, talk about more.
00:09:28.700 What do I need to do to increase my market value?
00:09:30.920 The word I would like to hold our politicians that are running for office accountable is
00:09:35.220 not minimum wage.
00:09:36.320 I want to hear your thoughts on living wage.
00:09:40.040 I want to hear your thoughts on market value.
00:09:42.640 So now you're asking, well Pat, I want to increase my market value.
00:09:44.860 What do I do?
00:09:45.920 Eight things for you to consider.
00:09:47.300 Number one, skills.
00:09:49.120 When it comes down to skill set, you're going to be in four different categories.
00:09:51.980 Which means what?
00:09:52.760 Anyone can do what you're doing.
00:09:54.180 Which means you're all the way at the bottom.
00:09:55.760 You're affected by minimum wage.
00:09:57.580 Number two, only a few people can do what you do.
00:09:59.800 You're pretty good at it.
00:10:01.080 Which means you get paid a little bit more.
00:10:03.280 Top 1%.
00:10:04.120 You're in the top 1%, which means you get paid good money.
00:10:06.820 And then you're the best.
00:10:07.700 When you're the best, guess what you do?
00:10:09.360 You tell the market what to pay you.
00:10:10.860 Because you are the best.
00:10:12.020 Now, a lot of people would like to get paid what the top 1% gets paid, or the best gets
00:10:16.180 paid.
00:10:16.980 You know what it takes?
00:10:17.900 A lot of sacrifice.
00:10:19.600 A lot of hours.
00:10:20.860 A lot of dedication.
00:10:22.340 A lot of time away from family.
00:10:23.840 A lot of nights of working late, studying, trying to figure out what you're doing.
00:10:27.000 By the way, to get better.
00:10:28.140 No TV.
00:10:29.420 None of this other stuff.
00:10:30.480 Taking care of your health.
00:10:31.540 Discipline.
00:10:31.940 You know who likes doing that?
00:10:33.220 Only the top 1%.
00:10:34.520 So the top 1% gets paid what they get paid, because they're willing to do what a few and
00:10:39.160 anyone is not willing to do.
00:10:40.440 Very simple.
00:10:40.900 By the way, say you come to a restaurant for you and your husband, you and your wife,
00:10:44.940 you and your boyfriend, girlfriend.
00:10:46.140 You're willing to spend $200 for dinner.
00:10:47.820 Are you okay if I'm winging the chicken, and it's my first day making chicken, or prime rib?
00:10:53.480 I don't know how to really make a bone and rib eye medium.
00:10:55.640 I kind of can go medium well.
00:10:56.740 I don't really know how long I should put it, flip it, seasoning.
00:10:58.840 I don't know.
00:10:59.160 I just put a bunch of salt on it.
00:11:01.080 And I'm cooking it like anybody else.
00:11:02.680 Are you okay spending $200 for an amateur like me?
00:11:05.500 Your answer is what?
00:11:06.660 No.
00:11:07.220 Maybe you said, hell no.
00:11:08.860 That's exactly the point.
00:11:10.460 So minimum wage is set up for no reason.
00:11:13.980 If you increase, you don't ever worry about things like this, because in the marketplace,
00:11:17.960 you're in the top 1% of fewer, the best.
00:11:19.800 Now, number two.
00:11:21.080 Industry.
00:11:22.260 Choose the right industry.
00:11:23.100 A lot of people say, noble industry.
00:11:24.520 I want to go do this.
00:11:25.160 I want to go do that.
00:11:25.900 I get it.
00:11:26.760 It's awesome.
00:11:27.460 But if you become a school teacher teaching fine arts, don't expect to make a quarter million
00:11:30.780 dollar income.
00:11:31.660 Okay?
00:11:32.260 Unless if the dean is your dad.
00:11:33.920 But if you want to try to do something that's going to make good money for you, you've got
00:11:36.460 to look at industries that you can use your talents, but it's got a bigger upside.
00:11:40.040 Number three.
00:11:41.160 Avoid the passion drug.
00:11:43.040 Let me explain what I mean by the passion drug.
00:11:45.200 A lot of these motivational speakers, online people, chase your passion.
00:11:48.800 Go after your passion.
00:11:50.320 You should go after your passion.
00:11:51.800 If you can do this with this, and if, listen, all good.
00:11:54.660 I'm not saying anything about passion.
00:11:56.340 I have a complete different mindset with passion.
00:11:58.040 Let me explain to you what I mean by passion.
00:11:59.720 To me, if you're 20, 30, 40, 50, 60, 70, 80, you've got to have a game plan.
00:12:04.260 This is my game plan.
00:12:05.000 There's four C's you ought to go through in life.
00:12:07.340 There's four 20-year terms in your life.
00:12:09.820 The first 20 years is curiosity.
00:12:11.680 Learn.
00:12:12.300 Go out there.
00:12:13.220 See what people are like.
00:12:14.300 Learn about different cultures.
00:12:15.720 Learn about different things.
00:12:16.800 Learn.
00:12:17.440 Learn.
00:12:18.100 Learn.
00:12:18.400 The first 20 years, you're curious.
00:12:20.040 Next 20 years, career.
00:12:21.680 Go into a career where you can make money.
00:12:24.300 Money matters.
00:12:25.300 Money matters a lot in life.
00:12:26.720 Whoever tells you money doesn't matter, they are probably single with no kids, never been 0.53
00:12:30.740 married, never owned a home before.
00:12:32.360 Money is critical.
00:12:33.740 The number one topic husband and wife argue wants to have kids is money. 1.00
00:12:37.400 So if you're single right now with no kids, you better realize you go on this hot date
00:12:40.540 of yours with your girl, and she looks amazing, and you look hot.
00:12:43.820 You got your six-pack.
00:12:45.060 I love her so much.
00:12:46.040 You like that tiramisu?
00:12:47.280 Let me put it in your mouth. 0.98
00:12:48.400 Let's have wine.
00:12:49.240 Do you want to go to my car?
00:12:50.180 Oh my gosh, we made out.
00:12:51.180 It was so good.
00:12:51.760 Third base.
00:12:52.460 I love her.
00:12:53.000 Mom, Dad, look at this girl. 1.00
00:12:54.360 I love this girl.
00:12:55.060 Here, all this other stuff.
00:12:56.120 Boom, you get married.
00:12:57.840 Who's paying the bill?
00:12:58.920 Oh, well, my mom makes money, and they have to pay for it, and they covered it. 1.00
00:13:02.260 Okay.
00:13:02.860 Who's paying the rent?
00:13:03.680 Who's paying the house? 0.89
00:13:04.440 How about the debt?
00:13:05.020 Sex was good, but she's pregnant. 1.00
00:13:06.520 Ready?
00:13:07.320 $250,000 per kid from zero to 18.
00:13:10.120 Not including inflation.
00:13:11.940 Okay?
00:13:12.540 You want to go to birthday parties?
00:13:13.680 You want to travel?
00:13:14.140 How about honeymoon?
00:13:14.720 I thought we were going to travel together.
00:13:16.300 Oh my gosh, this thing's so expensive.
00:13:18.160 Money matters.
00:13:20.040 Money matters.
00:13:20.840 Don't let anybody lie to you.
00:13:22.260 Okay?
00:13:22.720 Money matters.
00:13:23.980 The next 20 from 40 to 60, you can be creative, because now you have flexibility.
00:13:27.820 You have money.
00:13:28.260 Hopefully, you've saved.
00:13:28.860 You can be a little bit more flexible.
00:13:30.720 You can be a little bit more different, right?
00:13:32.680 And the last 20 is contribution.
00:13:34.020 What do you want to do?
00:13:34.620 Politics?
00:13:35.240 Charity?
00:13:36.000 Go work for UNICEF?
00:13:37.020 If you want to go travel the world, go do it.
00:13:38.900 Contribute as much as you want.
00:13:39.840 Church?
00:13:40.300 Any of this stuff.
00:13:41.600 You now have done it properly.
00:13:43.400 And when you talk about passion, you have no idea how many things I'm passionate about.
00:13:48.840 But I can do it within my vision of the company I'm building.
00:13:52.000 I don't have to leave that.
00:13:54.080 Money matters.
00:13:55.980 Life is expensive.
00:13:57.740 Next point.
00:13:58.360 Number four, specialize.
00:13:59.440 Don't generalize.
00:14:00.200 Specialize.
00:14:00.660 Number five, intrapreneur.
00:14:02.300 If you can find a company that you can work with internally, work your butt off, go above
00:14:07.060 everybody else, ask for a piece of the company, profit sharing, equity, and you can be part
00:14:11.960 of somebody you see that's running hard and somebody that, you know, that person's got
00:14:14.820 a vision.
00:14:15.580 They're working.
00:14:16.180 They're going through it.
00:14:16.740 They're like, I can just hang on to this person's hotel and make a lot of money.
00:14:20.160 You ought to do it.
00:14:20.860 So many times people want to start their own business.
00:14:22.440 I tell them, why don't you go work with somebody and get a piece of what they're doing and ask
00:14:26.080 them, what do I need to do?
00:14:27.340 Become an intrapreneur.
00:14:28.420 An alternative to being an entrepreneur.
00:14:30.340 Tenure trap.
00:14:31.040 Don't fall for this tenure trap.
00:14:32.800 Well, you know, they've told me if I work for LAUSD for 10 years, I get this tenure benefit
00:14:37.440 and they can't ever fire me and I'm just locked in, but you're only making 47 grand a year.
00:14:42.980 What are you doing?
00:14:43.880 Don't fall for this tenure trap deal that's going to make a difference in your life at
00:14:46.900 all.
00:14:47.700 Tenure trap is the same trap as minimum wage trap.
00:14:50.400 Don't fall for it.
00:14:51.640 Number seven, value, value, value, value, value, value.
00:14:56.140 The more value you bring to the world, the more people want to do for you.
00:14:59.500 So the more value you bring, market value goes up.
00:15:02.300 And last but not least, connections in your community.
00:15:04.220 Listen, when you build a community and you have the right connections, that attracts money
00:15:08.480 because your market value goes up.
00:15:10.040 If you're rubbing elbows with the right people, somehow, someway, you end up doing business
00:15:13.940 with them.
00:15:14.640 Just today, I was speaking to a guy that runs one of the biggest speaking companies, meaning
00:15:19.220 he works with all these guys that are speakers, right?
00:15:21.820 And we started going through a list of people and speakers.
00:15:24.120 And he gave me this name and that name and this name.
00:15:26.020 How the hell did this guy make $1.9 billion?
00:15:28.100 How did that guy make $2.2 billion?
00:15:30.000 He was in the community when they started a company and he was a guy that was there for
00:15:33.180 the first seven years.
00:15:34.040 And that's the piece.
00:15:35.180 That's why.
00:15:35.660 No way.
00:15:36.240 Yeah.
00:15:36.440 Community.
00:15:38.380 Connections.
00:15:38.940 Get in the right community and connections and stick around, especially if the people
00:15:43.860 are drivers there.
00:15:44.980 Eventually, you're going to have your break.
00:15:46.340 Thanks, everybody, for listening.
00:15:47.720 And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.
00:15:52.460 Give us a five-star.
00:15:53.760 Write a review if you haven't already.
00:15:55.360 And if you have any questions for me that you may have, you can always find me on Snapchat,
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00:16:01.380 Just search my name, Patrick MidDavid.
00:16:03.300 And I actually do respond back when you snap me or send me a message on Instagram.
00:16:08.280 With that being said, have a great day today.
00:16:10.020 Take care, everybody.
00:16:10.720 Bye-bye.
00:16:16.340 Bye-bye.