See my post "Modern Medicine and Let Them Eat Cake Politicians" about the cost for the medical personnel for my open-heart surgery. It was $20,280.50 of which I had an out-ot-pocket expense of $50.50.
This week I received the statement for the hospital stay and some of the rehabilitation. It was $131,088.04. Insurance paid all but $600 of it.
Without this insurance, somebody earning $9/hour would have to work over 14,565 hours or 1,821 days or 364 weeks or seven years. On the other hand, Marissa Mayers earned $900,000 per week as she sold off Yahoo! She could have paid the costs of five open-heart surgeries each week and still have had $150,000/week left over.
I’ll let you judge how a medical bill like this would affect your own finances. My guess is that without insurance, many of you would have to take out an extended mortgage on your house or sell it out-right.
Heart disease only affects one family. Consider what would happen if someone who had a communicable fatal disease didn’t get treated because the family could not afford the necessary care. It has happened down through the centuries and still happens around the world.
Showing posts with label minimum wage. Show all posts
Showing posts with label minimum wage. Show all posts
Tuesday, June 27, 2017
Wednesday, May 31, 2017
Modern Medicine and Let Them Eat Cake Politicians
I finally received a bill for my open heart surgery in April. See I’m back!
The bill for the initial surgeon’s visit and the operation is $20,280.50. The five days of hospital stay are not included. My bill for three-plus hours of surgery after Medicare and supplemental insurance: $50.50!!
What I pay monthly for insurance is $178.90 for Medicare and supplemental insurance plus $83.70 for prescription drugs. This is deducted from my Social Security. My wife pays the same amount.
According to https://resources.ehealthinsurance.com/affordable-care-act/much-health-insurance-cost-without-subsidy, individual coverage averaged $321 per month and family plans averaged $833. The annual deductibles were $4,358 and $7,983.
To pay the individual deductible, a person would have save about $84/week or two dollars an hour. For the premiums, a person would have to save about $74/week. Together that is $158/week or $3.95/hour. At a minimum wage of $9/hour, that doesn’t leave much for food and rent. Without insurance, a year’s wage of $9/hour would not even cover the above bill.
And lots of politicians and millionaires think these individuals should be happy with what they get. I don’t wish Marie Antoinette’s fate on these “let them eat cake” thinkers, but someday there will be a widespread realization that the people at the bottom of the economic are being taken advantage of. Let’s hope they find better “champions” than Donald Trump and his ilk.
The bill for the initial surgeon’s visit and the operation is $20,280.50. The five days of hospital stay are not included. My bill for three-plus hours of surgery after Medicare and supplemental insurance: $50.50!!
What I pay monthly for insurance is $178.90 for Medicare and supplemental insurance plus $83.70 for prescription drugs. This is deducted from my Social Security. My wife pays the same amount.
According to https://resources.ehealthinsurance.com/affordable-care-act/much-health-insurance-cost-without-subsidy, individual coverage averaged $321 per month and family plans averaged $833. The annual deductibles were $4,358 and $7,983.
To pay the individual deductible, a person would have save about $84/week or two dollars an hour. For the premiums, a person would have to save about $74/week. Together that is $158/week or $3.95/hour. At a minimum wage of $9/hour, that doesn’t leave much for food and rent. Without insurance, a year’s wage of $9/hour would not even cover the above bill.
And lots of politicians and millionaires think these individuals should be happy with what they get. I don’t wish Marie Antoinette’s fate on these “let them eat cake” thinkers, but someday there will be a widespread realization that the people at the bottom of the economic are being taken advantage of. Let’s hope they find better “champions” than Donald Trump and his ilk.
Thursday, March 27, 2014
Minimum wage, inflation, and personal experience
My first wage job that I remember was at Saywell Drug in Cleveland, Ohio. I probably started in the summer of 1951 after I quit my paper route. I started at fifty cents an hour. This was a low-skill entry job. I was a soda jerk, stocker, and small-item cashier.
Using the US Inflation Calculator, anything I bought for fifty cents would now cost $4.50.
Note: these figures were requested on March 16, 2014. A week later, many were a few cents higher.
I had a couple other jobs in that range. Then in late fall 1954 I started at Kroger’s as a stock clerk and bagger. My starting union-negotiated salary was $1.05. A dinner at a small diner then would cost $9.13 now.
When I flunked out of Case Institute of Technology in January 1958, I was earning $1.75 at the same Kroger’s store. Anything I bought with an hour’s wage then would cost $14.16 now. I was also a relief cashier on weekends.
No Kroger store had any full-time openings then. I eventually was hired as “third man” at a new Pic’n’Pay. Third man was sort of meaningless. I was after the assistant manager in groceries only. Produce and meat were separately run departments under the manager. I was only a glorified stocker and bagger. They wouldn’t let me be a cashier because I wasn’t bonded. They also did their best to make sure I never worked close to 40 hours per week. They would have to give me more benefits. My wage, in a union store? $1.54! I had to get the help of a union business agent I knew to get my $1.75. That $1.54 is now $12.46. Don’t you think a fast-food manager has a harder job with more responsibilities than a grocery clerk?
When I went to Ohio Wesleyan in the fall of 1958, I worked my first year at a local Kroger store. My wage was $1.54!!! I made the mistake of not putting that in writing to the union steward. He was sort of in the pocket of the manager and never really acted on my behalf. When I called the union office in Columbus they pointed out that I had waited too long without filing a written claim.
In June 1960 we were married and I started graduate school back at Case. I also had a graduate assistantship that paid $75 per week. Our upstairs apartment cost $65 per month and $75 when we moved downstairs. That $75 per week would be $592.69 in 2014 dollars. If I supposedly worked 20 hours per week, that would be almost $30/hour. I checked current graduate assistant salaries; the average is about $20,000/year or about $384/week. I was treated like a king! I was allowed nine credits per semester, I had use of the gym and library, and I had free parking in the lower lot.
I didn’t go on to a PhD program and opted for a full time job. My interviews were with Sikorsky in Framingham MA, GE in Syracuse NY, and Univac in St. Paul. I don’t remember the exact offers from each, but it was something like $8,400, $7,900, and $8,100. All things considered, I took the job nearest the Boundary Waters starting on Feb 3, 1963. The things I could buy then with that money would cost $61,918.94 today. Ah, a bright spot! A computer software engineer with a master’s degree can start around $85,500! But, the complexity of the work is far, far greater than when I started on mainframes that were giant toys compared to my iPhone. No wonder the computer industry wants to increase the number of H-1B visas for programmers.
When personal computers came along I saw no future in mainframes and started my own one-person company. I never implemented my grand visions and after over ten years tried getting a computer job. Ha! The checklist for “skills” was far longer than just a Masters in Mathematics. I eventually wound up driving a school bus in the Twin Cities and then moved up to transit buses, aka city bus. I started at $8.50/hour in 1995 and wound up with over $12/hour in 1999. These translate into 2014 dollars as $13.05 and $18.42 or $27,144 and $38,314 per year. According to salary.com, twenty-five percent of school bus drivers in Duluth earn over $35,623 per year. I assume that those have to get a lot of charter work.
My last job was as a ski instructor. I think my final pay in 2007 was around $8.00 per hour. That would be $9.03 in 2014 dollars. But the work was spotty depending on the weather and the people who show up. I don’t think I ever got more than 30 hours per week. I don’t know what the current pay is, but I did get nominally priced season passes for my wife and myself, a nifty jacket at a good price, and discounts at Ski Hut.
Other than the ski instructor, which often is a fun job, a computer programmer, which takes far more specialized learning than I had, and some school bus drivers, I think too many workers are worse off than I was way back then.
I think Adam Smith is being shown right again, it is lawful for the masters to organize to keep wages down, but it unlawful for the workers to organize to raise wages.
- Mel
You can find more of my thoughts at
http://magree.blogspot.com
Using the US Inflation Calculator, anything I bought for fifty cents would now cost $4.50.
Note: these figures were requested on March 16, 2014. A week later, many were a few cents higher.
I had a couple other jobs in that range. Then in late fall 1954 I started at Kroger’s as a stock clerk and bagger. My starting union-negotiated salary was $1.05. A dinner at a small diner then would cost $9.13 now.
When I flunked out of Case Institute of Technology in January 1958, I was earning $1.75 at the same Kroger’s store. Anything I bought with an hour’s wage then would cost $14.16 now. I was also a relief cashier on weekends.
No Kroger store had any full-time openings then. I eventually was hired as “third man” at a new Pic’n’Pay. Third man was sort of meaningless. I was after the assistant manager in groceries only. Produce and meat were separately run departments under the manager. I was only a glorified stocker and bagger. They wouldn’t let me be a cashier because I wasn’t bonded. They also did their best to make sure I never worked close to 40 hours per week. They would have to give me more benefits. My wage, in a union store? $1.54! I had to get the help of a union business agent I knew to get my $1.75. That $1.54 is now $12.46. Don’t you think a fast-food manager has a harder job with more responsibilities than a grocery clerk?
When I went to Ohio Wesleyan in the fall of 1958, I worked my first year at a local Kroger store. My wage was $1.54!!! I made the mistake of not putting that in writing to the union steward. He was sort of in the pocket of the manager and never really acted on my behalf. When I called the union office in Columbus they pointed out that I had waited too long without filing a written claim.
In June 1960 we were married and I started graduate school back at Case. I also had a graduate assistantship that paid $75 per week. Our upstairs apartment cost $65 per month and $75 when we moved downstairs. That $75 per week would be $592.69 in 2014 dollars. If I supposedly worked 20 hours per week, that would be almost $30/hour. I checked current graduate assistant salaries; the average is about $20,000/year or about $384/week. I was treated like a king! I was allowed nine credits per semester, I had use of the gym and library, and I had free parking in the lower lot.
I didn’t go on to a PhD program and opted for a full time job. My interviews were with Sikorsky in Framingham MA, GE in Syracuse NY, and Univac in St. Paul. I don’t remember the exact offers from each, but it was something like $8,400, $7,900, and $8,100. All things considered, I took the job nearest the Boundary Waters starting on Feb 3, 1963. The things I could buy then with that money would cost $61,918.94 today. Ah, a bright spot! A computer software engineer with a master’s degree can start around $85,500! But, the complexity of the work is far, far greater than when I started on mainframes that were giant toys compared to my iPhone. No wonder the computer industry wants to increase the number of H-1B visas for programmers.
When personal computers came along I saw no future in mainframes and started my own one-person company. I never implemented my grand visions and after over ten years tried getting a computer job. Ha! The checklist for “skills” was far longer than just a Masters in Mathematics. I eventually wound up driving a school bus in the Twin Cities and then moved up to transit buses, aka city bus. I started at $8.50/hour in 1995 and wound up with over $12/hour in 1999. These translate into 2014 dollars as $13.05 and $18.42 or $27,144 and $38,314 per year. According to salary.com, twenty-five percent of school bus drivers in Duluth earn over $35,623 per year. I assume that those have to get a lot of charter work.
My last job was as a ski instructor. I think my final pay in 2007 was around $8.00 per hour. That would be $9.03 in 2014 dollars. But the work was spotty depending on the weather and the people who show up. I don’t think I ever got more than 30 hours per week. I don’t know what the current pay is, but I did get nominally priced season passes for my wife and myself, a nifty jacket at a good price, and discounts at Ski Hut.
Other than the ski instructor, which often is a fun job, a computer programmer, which takes far more specialized learning than I had, and some school bus drivers, I think too many workers are worse off than I was way back then.
I think Adam Smith is being shown right again, it is lawful for the masters to organize to keep wages down, but it unlawful for the workers to organize to raise wages.
- Mel
You can find more of my thoughts at
http://magree.blogspot.com
Thursday, April 05, 2012
Tips and minimum wage
Sometime ago there was a big argument about raising the minimum wage for restaurant workers. One of the anti-arguments was that some servers earn $100,000 a year with tips. That is a rather short-sighted view.
For sake of easy arithmetic, let's assume $100,000 a year in tips, as if many servers should be so fortunate. Why did the server earn so much in tips? If you assume all diners tipped at 20% (lucky server), then that means the restaurant had $500,000 gross income a year. So, if the waiter was earning a base pay of $10/hour with 40 hours per week, the cost to the restaurant would have been $20,800 per year, not a bad investment to have a return of $500,000. Gosh, members of boards of directors often get $100,000 per year or more for six meetings a year, don't get sore legs, and they often have other full time jobs.
If the restaurant had more tight-fisted customers and the average tip was only 10%, then the server would have been bringing in $1,000,000 gross income for the restaurant. For that amount of income, shouldn't an employer treat a server as an asset instead of a cost? As Adam Smith wrote, when the profits go up and the wages go down, that is a sure road to ruin.
For sake of easy arithmetic, let's assume $100,000 a year in tips, as if many servers should be so fortunate. Why did the server earn so much in tips? If you assume all diners tipped at 20% (lucky server), then that means the restaurant had $500,000 gross income a year. So, if the waiter was earning a base pay of $10/hour with 40 hours per week, the cost to the restaurant would have been $20,800 per year, not a bad investment to have a return of $500,000. Gosh, members of boards of directors often get $100,000 per year or more for six meetings a year, don't get sore legs, and they often have other full time jobs.
If the restaurant had more tight-fisted customers and the average tip was only 10%, then the server would have been bringing in $1,000,000 gross income for the restaurant. For that amount of income, shouldn't an employer treat a server as an asset instead of a cost? As Adam Smith wrote, when the profits go up and the wages go down, that is a sure road to ruin.
Tuesday, July 06, 2010
A tip for Tom Emmer on wait staff pay
Tom Emmer, Republican candidate for Minnesota Governor, wants the minimum wage lowered for service workers who get lots of tips. See "Emmer: Lower wages for tipped workers", Jackie Crosby, Star Tribune, 2010-07-06. He says that the extra wages are taking money from customers. Is he also calling for CEOs with large bonuses to get a lower base pay? After all, these CEOs are also taking money from customers.
His arguments are also weak on other points.
He uses as an example the Eagle Street Grill in downtown St. Paul where "three servers take home over $100,000 a year, including tips."
Do each of the servers take home $100,000 a year or do three servers take home $100,000 a year among them. In the latter case, $33,000 may be a good income for many servers, but many others would like to get that much. If a server receives lots of tips, doesn't that mean they are providing good service to their customers. If they are providing good service to their customers, aren't many of these repeat customers and probably even buying a lot of food and drink. If the customers are buying a lot, the restaurant owners should be very happy to have highly-paid servers.
How many times have you gone into a restaurant where the server has not asked if you want drinks before dinner, has not asked if you want wine with dinner, and has given you a bill without even asking if you want coffee or dessert? Even if the answer will be no, a good server always asks these questions. The server who does will generate more revenue for the restaurant and will get a bigger tip. Oh, but that is taking money from the customers.
If you want to see more realistic figures, see "Tom Emmer goes after food server wages", Rachel Hutton, City Pages, 2010-07-06. She blows lots of the "facts" that Emmer states out of the water. An even better analysis is "Servers, wait staff unlikely to make $100,000", Annie Baxter, Minnesota Public Radio, 2010-07-06, 2010-07-06.
I could go on and on picking apart the arguments of the likes of Tom Emmer, but I'll end with just two.
One was mentioned in Baxter's argument comparing wait staff during slow times to that of sales persons. Many sales persons still get a base pay for getting out there and trying. Do CEOs get a lower base salary when sales are low?
Remember Circuit City. It laid off its highest paid sales staff and went downhill from there. It was the highest paid sales staff that people went to for answers. If they got good answers, they bought. The lower paid staff didn't always have the answers and so fewer people bought stuff from Circuit City. The high-paid servers are generating a lot of sales for their restaurants. Don't knock them!
Other references:
"Circuit City cost cutting madness", Andrew Weir
"How the Mighty Fall", Jim Collins. It is ironic that he mentioned Circuit City in his previous book, "Good to Great". Is there a lesson for Minnesota here?
His arguments are also weak on other points.
He uses as an example the Eagle Street Grill in downtown St. Paul where "three servers take home over $100,000 a year, including tips."
Do each of the servers take home $100,000 a year or do three servers take home $100,000 a year among them. In the latter case, $33,000 may be a good income for many servers, but many others would like to get that much. If a server receives lots of tips, doesn't that mean they are providing good service to their customers. If they are providing good service to their customers, aren't many of these repeat customers and probably even buying a lot of food and drink. If the customers are buying a lot, the restaurant owners should be very happy to have highly-paid servers.
How many times have you gone into a restaurant where the server has not asked if you want drinks before dinner, has not asked if you want wine with dinner, and has given you a bill without even asking if you want coffee or dessert? Even if the answer will be no, a good server always asks these questions. The server who does will generate more revenue for the restaurant and will get a bigger tip. Oh, but that is taking money from the customers.
If you want to see more realistic figures, see "Tom Emmer goes after food server wages", Rachel Hutton, City Pages, 2010-07-06. She blows lots of the "facts" that Emmer states out of the water. An even better analysis is "Servers, wait staff unlikely to make $100,000", Annie Baxter, Minnesota Public Radio, 2010-07-06, 2010-07-06.
I could go on and on picking apart the arguments of the likes of Tom Emmer, but I'll end with just two.
One was mentioned in Baxter's argument comparing wait staff during slow times to that of sales persons. Many sales persons still get a base pay for getting out there and trying. Do CEOs get a lower base salary when sales are low?
Remember Circuit City. It laid off its highest paid sales staff and went downhill from there. It was the highest paid sales staff that people went to for answers. If they got good answers, they bought. The lower paid staff didn't always have the answers and so fewer people bought stuff from Circuit City. The high-paid servers are generating a lot of sales for their restaurants. Don't knock them!
Other references:
"Circuit City cost cutting madness", Andrew Weir
"How the Mighty Fall", Jim Collins. It is ironic that he mentioned Circuit City in his previous book, "Good to Great". Is there a lesson for Minnesota here?
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