Notes From All Over, Part 1 -- February 21, 2020

The other day I noted a story in which the Bolingbrook, IL, mayor rejected Amazon's offer to build a huge distribution center in the mayor's city because $15/hour was "not a living wage. In Illinois, it is a living wage. Perhaps not in Silicon Valley or Washington, DC, but in Illinois, $15/hour is a living wage.

I was reminded of that because it was just announced that Amazon would be building yet another major distribution center near DFW airport -- this must be their eighth(?) major distribution / fulfillment center in this area. They will be hiring 1,000 people for this center.

$15 x 40 hours, one week = $600.

Onepointfive weeks: an apartment. We live in an upscale two-bedroom apartment: $1800/month in a high-cost location.

$15 x 40 hours, one week, $600: one car, insurance, maintenance, and fuel.

That leaves 1.5 weeks for food, co-pays for company's health benefits, etc.

It is not much but it's enough to get started.

But you say that I'm not including social security deductions, state and federal taxes. That is correct. If $15/hour is not a living wage according to politicians, the low-hanging fruit is to eliminate all government deductions for hourly wages less than, let's say $20/hour, to include social security, Medicare, taxes. The $15/hour is a living wage -- without the government deductions.

On top of that, those 1,000 folks that won't get $15/hour in Bolingbrook, IL -- what is the living wage they will get from the government for being unemployed. My hunch: not $15/hour.

Back of the envelope:

Is $20/hour a living wage? At some point, the mayor needs to tell us what a living wage in Bolingbrook is. Let's say it's $20/hour, an extra $5/hour for each new Amazon hire.

1,000 employees x $5/hour (extra) and 40 hours/week x four weeks: $800,000 (month) would be necessary.

It is estimated that Mayor Mike Bloomberg is willing to spend $2 billion on his campaign.

$2 billion / $800,000 =  2,500 months = 208 years.

Disclaimer: I often make simple arithmetic errors.

Bloomberg has said he plans to donate the majority of his net worth. His net worth is $65 billion. In my part of the world, "majority" means at least 50.1%

50.1% of $65 billion = $32.6 billion.