Company that set a minimum wage of $70,000/year facing some unexpected consequences

The left championed Gravity Payments CEO Dan Price as a hero in the war against income inequality, but a few months after setting a minimum wage of $70k his business has encountered some unexpected problems. Well, unexpected if you don’t have any comprehension as to why socialist principles have categorically failed throughout history. It turns out that if you give the least skilled people at your company a huge pay raise, the highly skilled employees who carry the burden of getting the work done won’t be too happy to get nothing.

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Below is a rush transcript of this segment, it may contain errors:

STU: Someone else who had a pretty good business was Dan Price. Dan Price is 31 years old. CEO of a company. This is a company that does like internet transactions as far as like, you know, you're paying for things.

JEFFY: Online purchases.

STU: Like a PayPal type of thing. So he decided because he believes in what the left says about income inequality. Decided to change the structure of his company. He's CEO. Making a billion bucks a year. A bunch of people were making way less than that. Is that right? He says no. So he took a giant pay cut and brought himself down to $70,000 a year. He also at the same time decided to pay all of his employees at least $70,000 a year because, you know, income inequality. It's not about the job you're doing or how well you're doing it. Just everything needs to be income no matter what.

JEFFY: Right.

STU: So this was a big story. The New York Times picked it up. It was a -- it was a cause of the left for a couple of weeks. Now, what doesn't happen with those causes of the left is no one ever follows up on them. This time we'll give credit to for doing so. They decided to call up Dan Price a few weeks later and say, hey, Dan, you had that company doing well and you decided to turn it into an example of socialism. How is that going for you? Working out well? Everything going great? Is that what we would expect? Well, he says, I'm working as hard as I ever worked to make it work. I'm renting out my house right now to make ends meet myself. This is with -- he's talking about the difficult struggle. However, the problem is, a lot of the good employees have left.

JEFFY: Yeah, they were kind of pissed, which is what we said.

STU: See, the new employees who were not doing as much work or not as high level in the company are making the same now as the people who have been there for a while and have built the company, which is kind of crazy.

He gives 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 salary bump. This is from the financial manager. Mazy McCaster. She's 26. 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 everyone in my position. Approaching burnout, she quit.

Grant Morgan, 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. It shackles high performers to less motivated team members.

Price, now, this is the guy who is the boss, said both of these guys -- and also Rush Limbaugh and other talk show hosts who were critical of this, were not wrong. There's no perfect way to do this and to handle complex work issues that doesn't have any downsides or tradeoffs.

So he's now losing his good employees. He's keeping the old employees at inflated rates, and he's having major problems with his company. And there's a reason for that. Socialism doesn't work. It's not a system that ever worked.

JEFFY: He lost some of his clients as well over this transition. Some employees were wound up that if they were willing to do that, then maybe something else was wrong and they weren't going to get the service that they had been getting in the future.

Now he claims to have gotten new clients because of this. But that has not paid off yet.

STU: No, because those clients are like, you know what, we don't think it's right for us to be paying for these services. They should be free to everyone. We won't send in any payments. But they're new clients.

JEFFY: He's really struggling. And he's struggling with his brother who helped him start the business. Now he's phased out the brother. And the brother is like, I'm worth a little bit more than 70,000-dollar thing. I need a piece of the pie.

STU: Yeah, you'll notice that this doesn't happen in the businesses that liberals usually run. I'll give Dan Price a lot of credit here. You know, he's actually implementing these policies that you normally only see implemented by someone named Jong-il.

JEFFY: He seemed to think -- he didn't do it -- according to the story, when I read the latest catch-up story, he didn't do it, he claimed, because of the il factor. He just, you know, felt like he saw something that somebody was struggling. He heard one of his employees struggling about some sort of school or something. Gosh darn it.

STU: He did address the income inequality part of it though. Look, there's nothing wrong with believing that. This guy actually put it into practice. The left -- for example, Obama complains about women not being paid the same and then doesn't pay women as much as men in his own administration. Hillary Clinton, the same thing in the campaigns. We've see this over and over and over again. And it's really annoying. At least this guy is trying. The best that can happen -- is why we like federalism is that you can do these things. Test them out. We can all watch someone else fail at them. And then we can decide to do the right thing. That's what's good about this country. I'm all for this guy giving this a whirl. There's a lot of companies that try crazy things like that and they usually don't work. Everyone wants to come up with a new way of running the business. Because everyone else is so stupid. And they don't understand. And they're stodgy. And stuck in their old ways. A lot of those old ways work and they do something. That doesn't mean you constantly go on with the exact same process forever.

JEFFY: But we watch other companies grow and succeed and fail. And that's the way we learn. I mean, we learn that children should not put signs in front of their house to sell worms. It's illegal. Don't do it. Don't try to sell your product with a sign, kid.

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Protests following the fatal police shooting of Walter Wallace Jr quickly devolved into violence, rioting, and looting in Philadelphia, and BlazeTV's Elijah Schaffer was there to document what the mainstream media won't. But while filming the carnage inside a Five Below on Tuesday, Elijah was surrounded and attacked by looters.

Elijah joined Glenn Beck on the radio program Wednesday to detail his experience and to explain why mainstream media efforts to downplay the violence just show that independent media has never been more important.

"Unfortunately, [the attack] escalated from one person to about a dozen very quickly," Elijah explained. "I'm actually really happy to be alive. Because in that same shopping center, right there, there was a 15-year-old girl who was shot, according to reports. And I heard multiple gunshots throughout the night. Another individual is reported to have heard a gunshot as well, so we try to confirm. I watched people get pummeled beyond belief."

Glenn asked Elijah to respond to mainstream media claims that conservatives are exaggerating the looting and violence in Philadelphia.

"It's so funny to hear people that aren't there try to counter what we're reporting," Elijah replied.

Watch the video below to catch more of the conversation:

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In the final days before the 2020 election, President Donald Trump is gaining among black voters, particularly men, because his record of accomplishments "speaks for itself" and the "façade" that President Trump is a racist "just doesn't ring true," argued sports columnist Jason Whitlock on "The Glenn Beck Radio Program" Tuesday.

Jason, who recently interviewed the president at the White House for, shared his thoughts on why he believes many black Americans — notably celebrities such as Kanye West, Ice Cube, and 50 Cent — are breaking from the "façade" that President Trump is a "flaming racist."

"I really believe the facts are starting to speak for themselves, and that Donald Trump's record of accomplishments, particularly as it relates to African Americans, speaks for itself," Jason told Glenn. "He actually has a record to stand on, unlike even Barack Obama. When [Obama] was president, I don't think he had much of a record to stand on, in terms of, 'Hey, what did he actually deliver for African Americans?' President Trump has things he can stand on and, you know, beyond that I think black people understand when he starts talking about black unemployment rate. And America's unemployment rate. And then, when you add in for black men, the façade we've been putting on [President Trump] … you know, this whole thing that he's some flaming racist, it just doesn't ring true."

Jason suggested that Trump's fearlessness, unabashed masculinity, and record of keeping his promises resonates with men in the black community. He also weighed in on how media and social media's bias plays a huge role in convincing people to hate President Trump while ignoring Antifa and others on the Left.

"I keep explaining to people, Twitter, Instagram, Facebook, they're some of the most secular places on earth. And we've reduced everyone to a tweet, that we disagree with," he added.

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Megyn Kelly is not happy about the "disgusting" media coverage of President Donald Trump, specifically pointing to Lesley Stahl's "60 Minutes" interview on CBS Sunday.

On the radio program, Megyn told Glenn Beck the media has become so blinded by the "Trump Derangement Syndrome" that they've lost their own credibility — and now they can't get it back.

"It's disgusting. It's stomach-turning," Megyn said of the media's coverage of the president. "But it's just a continuation of what we've seen over the past couple of years. Their 'Trump Derangement Syndrome' has blinded them to what they're doing to their own credibility. They can't get it back. It's too late. They've already sacrificed it. And now no one is listening to them other than the hard partisans for whom they craft their news."

Megyn also discussed how she would have covered the recent stories about Hunter and Joe Biden's alleged corruption. Watch the video below to catch more of the conversation:

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