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Clinger
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The article is even funnier after you watch the video attached.

The Seattle CEO who reaped a publicity bonanza when he boosted the salaries of his employees to a minimum of $70,000 a year says he has fallen on hard times.

Dan Price, 31, tells the New York Times that things have gotten so bad he's been forced to rent out his house.

Only three months ago Price was generating headlines-and accusations of being a socialist -- when he announced the new salary minimum for all 120 employees at his Gravity Payments credit card processing firm. Price said he was doing it, and slashing his $1 million pay package to pay for it, to address the wealth gap.

"I'm working as hard as I ever worked to make it work," he told the Times in a video that shows him sitting on a plastic bucket in the garage of his house. "I'm renting out my house right now to try and make ends meet myself."

The Times article said Price's decision ended up costing him a few customers and two of his "most valued" employees, who quit after newer employees ended up with bigger salary hikes than older ones.

"He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn't get much of a bump," Gravity financial manager Maisey McMaster, 26, told the paper.

She said when she talked to Price about it, he treated her as if she was being selfish and only thinking about herself.

"That really hurt me," she said. "I was talking about not only me, but about everyone in my position."

Approaching burnout, she quit.

Grant Moran, 29, also quit, saying the new pay-scale was disconcerting

"Now the people who were just clocking in and out were making the same as me," he told the paper. "It shackles high performers to less motivated team members."

Price said McMaster and Moran, or even critic Rush Limbaugh, the talk show host, were not wrong.

"There's no perfect way to do this and no way to handle complex workplace issues that doesn't have any downsides or trade-offs," he said.

The Times said customers who left were dismayed at what Price did, viewing it as a political statement. Others left fearful Gravity would soon hike fees to pay for salary increases.

Brian Canlis, co-owner of a family restaurant, already worried about how to deal with Seattle's new minimum wage, told Price the pay raise at Gravity "makes it harder for the rest of us."

"It pains me to hear Brian Canlis say that," Price said. "The last think I would ever want to do is make a client feel uncomfortable."

The Times said Price has dozens of new clients inspired by his move but those accounts won't start generating profits for at least another year.

Making matters worse for Price is a lawsuit his older brother filed two weeks after the pay hike announcement.

Lucas Price, who owns 30 percent of the company, accuses his brother of taking millions of dollars out of the company while denying him the benefits of his minority ownership.

The lawsuit has forced Gravity to pay mounting legal fees at a time when the new salary scale is being eaten up by profits.

"We don't have a margin of error to pay those legal fees," Dan Price said.

http://www.foxnews.c.../?intcmp=hplnws
 

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"Now the people who were just clocking in and out were making the same as me," he told the paper. "It shackles high performers to less motivated team members."

Yes, and that is socialism for you. It rewards mediocrity and punishes those who strive to do more. Why work hard when Johnny Schlub, who just clocks in and does the bare minimum, makes as much as I do?
 

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I must say I am shocked. Just shocked.
Socialism is wonderful theory that forgets to acount for two important elements of human existence laziness And greed/ sense of justification.
 

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Putin, the new Ceasar. Veni,Vidi, Vici!
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Socialism doesn't punish achievement, it does something much worse it doesn't reward it. A high achiever who is not rewarded is a ruined person. They will not work, they will not produce, they will even passively sabotage by not disclosing faults or flaws in methods or theories that are plainly visible to them but not to others.
Ideology can only get you so far, eventually you have to reward a high achiever and a medal that thanks you on behalf of the proletariat just doesn't seem as nice as money in the bank and a new Porsche.
 

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Grand Poobah
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Rush predicted this the day it happened.
Everyone that understands a little about human nature,business, economics and doesn't have their head shoved up their own butt predicted this.
Honestly though, I had no idea it would happen so fast.
That did surprise me.
This could have been a chapter in Atlas Shrugged.
 

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Premium Member
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3,437 Posts
You cannot pay someone enough to change if they suck. Example: I have an 8 man crew working on a job that is union scale pay, $70.11 per hour. Yesterday I fired all of them. Tomorrow I will have another crew starting. These guys came in talking about how much they appreciate the job & opportunity bla bla bla. They all swore they would give 100%. It took 1 week for me to start threatening after seeing them walk around with hands on hips & go down to their cars for 10 min, excessive bathroom breaks etc. 3 weeks to tell them to **** off! IT DOESNT WORK! You either have a quality worker or you don't! Another example: I put all 8 guys on a piece of the job. I watched with binoculars from across the parking lot to see who was for real, after telling the guys that sucked that they need to move they swore they would. They never did. Ok, so it's like this. If I have 20 guys on a job assuming they are the typical lazy scum, they will all work just fast enough to meet (or come close to) the deadline. If you cut the number of guys down, to a point of course, the rest will work harder & take up the slack & you will get basically the same production. Of course im simplifying & there are factors that would disrupt my model but whatever. Now what I did was to get rid of the ones who were the least productive & then re started with 4 guys. No loss of pace! Those guys knew they were on borrowed time. This cr*p about paying McDonald's workers & the like $15 & giving mediocre employees the same pay as performers goes against the laws of nature & I've said it before, the farther you stray from the laws and constructs of nature the more convoluted & perverse the system becomes. It therefore requires more sub systems in place to make course corrections & supports for its B.S. Logic. I think that's at the heart of this liberal non sense, feeling that everyone will rise to the occasion if we just give them that extra boost they need to get started. Sorry Ahole, it doesn't work like that! The people they are trying to help are less like a giant snowball at the edge of a cliff that needs a little push & more like a giant boulder in a swamp that needs to be placed up there next to the snowball. Wow! My analogies are both poignant & stupid at the same time!
 

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Putin, the new Ceasar. Veni,Vidi, Vici!
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21,922 Posts
Everyone that understands a little about human nature,business, economics and doesn't have their head shoved up their own butt predicted this.
Honestly though, I had no idea it would happen so fast.
That did surprise me.
This could have been a chapter in Atlas Shrugged.
It was a chapter in the book, the one where the 21st Century Motor Cars are described and it's downfall.
How fascinating that Ayn Rand, or Alisa Zinov'yevna Rosenbaum as she really should be known, laid it all out all those years ago.
Socialism has only one possible outcome: tyranny of bureaucracy and non producers. They both know how to demand but have no idea how to produce. We are very close to the tipping point...
 

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Premium Member
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601 Posts
You cannot pay someone enough to change if they suck. Example: I have an 8 man crew working on a job that is union scale pay, $70.11 per hour. Yesterday I fired all of them. Tomorrow I will have another crew starting. These guys came in talking about how much they appreciate the job & opportunity bla bla bla. They all swore they would give 100%. It took 1 week for me to start threatening after seeing them walk around with hands on hips & go down to their cars for 10 min, excessive bathroom breaks etc. 3 weeks to tell them to **** off! IT DOESNT WORK! You either have a quality worker or you don't! Another example: I put all 8 guys on a piece of the job. I watched with binoculars from across the parking lot to see who was for real, after telling the guys that sucked that they need to move they swore they would. They never did. Ok, so it's like this. If I have 20 guys on a job assuming they are the typical lazy scum, they will all work just fast enough to meet (or come close to) the deadline. If you cut the number of guys down, to a point of course, the rest will work harder & take up the slack & you will get basically the same production. Of course im simplifying & there are factors that would disrupt my model but whatever. Now what I did was to get rid of the ones who were the least productive & then re started with 4 guys. No loss of pace! Those guys knew they were on borrowed time. This cr*p about paying McDonald's workers & the like $15 & giving mediocre employees the same pay as performers goes against the laws of nature & I've said it before, the farther you stray from the laws and constructs of nature the more convoluted & perverse the system becomes. It therefore requires more sub systems in place to make course corrections & supports for its B.S. Logic. I think that's at the heart of this liberal non sense, feeling that everyone will rise to the occasion if we just give them that extra boost they need to get started. Sorry Ahole, it doesn't work like that! The people they are trying to help are less like a giant snowball at the edge of a cliff that needs a little push & more like a giant boulder in a swamp that needs to be placed up there next to the snowball. Wow! My analogies are both poignant & stupid at the same time!
i am trying to follow this i was doing well until the part of some guys were working and some werent..so from what i gather is that you hired 8 guys canned four guys and the 4 guys left were doing the same work as when their was 8 guys. so the 4 guys left are doing the work of 8 guys, breaking their Butt for you and you say they are on borrowed time? or are you saying that you should of just hired 4 guys in the first place. listen brother i agree with you on a hard and honest days work but i am also a guy who was told why should i give you a raise, you are getting the job done for what i am paying you so why should i give you a raise that was 3 years without a raise by the way..not one penny raise in 3 years and this is during the stock market boom when money was flowing, and believe me brother i was grossly underpaid compared to all others in my occupation. in all fairness brother if you were paying me $70.11 an hour my Butt would be digging ditches to china if you asked me. there in is where you are correct in everything you say. when someone is paying you that amount of money an hour you better give the boss your best and then some..i think my post was more about the 4 guys left than anything else. dont think guys breaking their Butt for you should be told your on borrowed time for breaking your Butt for me. like i said i agree with ya especially as i re read and the 70.11 sunk in...man to mess around on a job that is paying you that much is insane.
 

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Borders, Language, Culture
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"From each according to his ability, to each according to his need." The plan enslaved the most able to the unable. The first man to quit the company was a young engineer who said that he would put an end to such irrationality once and for all - he said he would stop the motor of the world. Years passed, factories closed, production declined, and the motors stopped. Jeff Allen and the factory's other workers began to wonder if the young engineer had succeeded in his mission. The engineer's name was John Galt.
 
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Premium Member
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It all starts in grade school and on the Little league field. Where no one fails a test and no one keeps score at the little league game..... We don't want anyone to feel bad. We don't want lazy people to have to suffer now do we. It is not their fault they slide by. It is what they have been taught. Now if you have strong family values then you might have something. Then again we want to take power away from moms and dads also.... Don't discipline your child or go to jail. And I could go on mostly how people are just ****. But I won"t...
 

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I think he had the right idea - cutting his huge salary to bump the lower employees up without cutting into profits or requiring price hikes - BUT the big minimum and not bumping everyone up the line a little is whats doing him in.

Finding the balance is the issue.
 

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Grand Poobah
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I think he had the right idea - cutting his huge salary to bump the lower employees up without cutting into profits or requiring price hikes - BUT the big minimum and not bumping everyone up the line a little is whats doing him in.

Finding the balance is the issue.
True. And usually the best mechanism, not perfect but the best is the free market. Competition to be exact.
If an employer screws good employees than they will leave because they can.
They will go to a competitor while the other company will retain the lousy ones.
The better company will provide better products and services by having better employees and will therefore be more profitable.
It's honestly that simple.
But all the blocks to competition by government reduces competition and thereby hurts employees and consumers.
The only people it doesn't hurt are the big shots!
I'm not saying you need no regs but most states and the feds over regulate and ridiculously so.
Look at states that have growing economies. Generally, less interference with competition, less regulations and business taxes.
Consequently their economies do better overall, so the workers and consumers do better overall.
 
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