Twenty States Will Raise Their Minimum Wage on January 1st

[Busybody]

What Prices Look Like Before and After A Mandatory Minimum Wage Increase



Minimum wage workers in 19 states are bringing in 2015 with expectations that they’ll make more money this year than last. While the recent pay bump will no doubt lead to higher income, what many who supported wage hikes like Seattle’s $15 per hour minimum fail to consider is where that money comes from.

And no, it’s not going to be printed and distributed by the government (at least not at first).

It turns out that when you mandate wage increases for employees, said increase in compensation is actually paid for by the employer. As we noted in Stupidity Has a Price, that means one of three options:


Businesses in the area just saw a massive increase in their labor costs (and let’s not even mention new Obamacare health insurance requirements and taxes). There are really just three possible solutions here:

1) Businesses will be forced to raise prices, which will essentially wipe out the benefit of any wage increase because while employees may make more money they’re now paying more for the same goods.

2) Businesses will have to cut back hours. If you force a business to pay 50% more per hour per employee and consider how much money that is, many will have no choice but to cut back hours, which effectively leaves the employee making the same amount of money.

3) Businesses will have to let people go. It’s simple. If their revenue stays the same but their labor costs go up a business has no choice but to consolidate its work force.

The effects have already started appearing. What this boils down to is a basic game of arithmetic. If a business has to pay more for labor, they will subsequently push those costs onto consumers (and many of those consumers turn out to be the very people whose rising wages are responsible for the rising costs).

This may be hard to believe for those who blame America’s poverty levels and low wages on the private sector as opposed to the disastrous policies of our central bankers and government leadership, but it’s true. An analysis from The Heritage Foundation found that Seattle’s minimum wage hike will lead to across-the-board price increases with fast food chain customers set to see a whopping 38% increase in the cost of their super sized mega meals.

A visual from The Daily Signal sums it up and finally explains why we can’t just force businesses to raise everyone’s wage to $100 per hour:

fastfoodpriceshttp://shtfplan.com/wp-content/uploads/2015/01/fastfoodprices.jpg

One unforeseen problem is that many of the workers who will see a wage increase may be pushed into a higher income bracket causing them to lose access to public services like Electronic Benefits Transfer or other income assistance programs.

And for those on EBT or other social services that help them pay for the bare essentials and make ends meet, they are about to see price increases in food, clothing and everything else as businesses move to offset increased labor costs.

But no need to panic, because even though the government created these problems there is absolutely no doubt that as soon as people start complaining about not being able to afford their living expenses our elected officials will find a way to finally, once and for all, end the war on poverty.

 

[Busybody]

if peeps don't like the MIN WAGE

why don't they QUIT and become ball players or movie stars or rap moguls or brain surgeons and earn more?

 

[Busybody]

https://pbs.twimg.com/media/B6jFA1YIMAE9MBL.jpg

 

[Busybody]

https://pbs.twimg.com/media/B6WBxYuIAAMrBrp.png

 

[Busybody]

we told you so

we are #right again!

Minimum Wage Was Maximum Enemy for This Doomed SF Bookstore





Borderlands Books, a much-praised science-fiction and comic-book store in San Francisco, opened for business in 1997. It has survived two recessions, a 100 percent rent increase, the opening of big chain bookstores, and the rise of Amazon’s deep-discounting online empire. What will finally force it to close its doors next month is San Francisco’s proposed increase in the minimum wage, which will hit $12.25 an hour in May.

Owner Alan Beatts minced no words about the reason for his store’s closure: “Borderlands Books as it exists is not a financially viable business if subject to the minimum wage.” Ironically, he said 2014 was the store’s best year in its 18-year history, and the store turned a small profit and was able to employ six people. But Beatts says the planned increases in the city’s minimum-wage law — which top out at $15 an hour by 2018 — will sink him. He would either have to increase sales by 20 percent (unrealistic) or reduce the staff to two managers and one part-time employee — all of whom would have to work greatly extended hours. “Keeping up our morale and continuing to serve our customers while knowing that we are going to close has been very painful for all of us over the past three months,” Beatts wrote in a statement to his customers. “Continuing to do so for even longer would be horrible. Far better to close at a time of our choosing, keep everyone’s sorrow to a minimum, and then get on with our lives.”

Raising the minimum wage has become the new feel-good elixir of the Left, which loves the fact that its simplistic appeal can win over electorates in many cities. But the law of unintended consequences kicks in after the warm glow of voting for “a living wage” passes. Young people — especially minorities — are frozen out of an already tight job market and small businesses are least able to afford the extra expense of an increase. “Businesses will not pay workers more than the value they produce,” notes James Sherk, a labor-policy analyst at the Heritage Foundation. “A $15 minimum wage forbids anyone whose labor produces less than that from working — as this bookstore’s employees learned the hard way.”

 

[unregistered]

 

[NeverEndingMe]

this is awesome, I love that parents will do anything for their children to help them to achieve the goal of "earning" min wage and enter poverty

god bless the great cuckold obama and his failed dreams

 

[KingOrfeo]

Leftists have never understood the laws of economics.

Whatever the "laws of economics" may be, "minimum wage kills jobs" is not a conclusion supported by experience.

 

[unregistered]

 

[Que]

YEah, but a lot of that is a problem with our society and unrelated to the minimum wage.

The first half is valid, 'unrelated' not so much. I will grant you that minimum wage is not the primary factor in the un and underemployment of young black males. Living in zones that businesses will not locate to or relocate from because of crime is probably huge. War on drugs and incarceration/ convicted felon record rates a close second.

Minimum age absolutely exacerbates these problems. Even someone who is doing what they can illegally to support themselves and/or their family would benefit in many ways from a sub-minimum wage job. It's a starting point, a means of developing work habits, and its a J-O-B that comes with a reason for being here or there with less hassle, decent cover, and a W2 for the earned income tax credit. It gets you enrolled into the SS system. None of those things happen to each and ever person priced out of the market.

 

[JohnnySavage]

Vette's posting on economic issues always makes me *chuckle*


Here's a brain teaser: If someone is making $8 an hour, they are eligible for Medicaid and food stamps. Should the tax payers subsidize a corporations labor costs?

Big spending (not)Republicans, feel free to chime in.

 

[KingOrfeo]

Yes it is, you're full of shit, as has been proven time and time again. You have to believe that people buy more when prices are higher than they do when prices are lower to believe what you believe about the Minimum Wage.

Once again, that is not a conclusion supported by experience. States raise their minimum wage and it does not throw people out of work.

The "laws of economics" are not something you can work out from self-evident first principles without reference to real-world data, the Austrian school notwithstanding.

 

[RobDownSouth]

Yes it is, you're full of shit, as has been proven time and time again. You have to believe that people buy more when prices are higher than they do when prices are lower to believe what you believe about the Minimum Wage.

Your cherished wingnut fantasy about minimum wage hikes costing jerbs has been disproven.

You're simply not man enough to face the reality.

#SimperFi

 

[NeverEndingMe]

Vette's posting on economic issues always makes me *chuckle*


Here's a brain teaser: If someone is making $8 an hour, they are eligible for Medicaid and food stamps. Should the tax payers subsidize a corporations labor costs?

Big spending (not)Republicans, feel free to chime in.

get a life

 

[Que]

Vette's posting on economic issues always makes me *chuckle*


Here's a brain teaser: If someone is making $8 an hour, they are eligible for Medicaid and food stamps. Should the tax payers subsidize a corporations labor costs?

Big spending (not)Republicans, feel free to chime in.

Republicans are responsible for the unintended consequences of having a bloated welfare state? Are they also responsible for the labor participation rate when 99 week unemployment made staying home a smarter and more profitable choice than accepting a lower-waged job?

Those dependents are dependents if they have a low paying job or no job. The fact that their life is only marginally better with a low paying job than no job is a function of the perverse incentives of the welfare state.

 

[NeverEndingMe]

so embarrassing .... all you obama asshats wanting higher min wage


why don't you fuckers find better jobs?

simple solution for a simple problem that only only effects simpletons

 

[JohnnySavage]

Republicans are responsible for the unintended consequences of having a bloated welfare state? Are they also responsible for the labor participation rate when 99 week unemployment made staying home a smarter and more profitable choice than accepting a lower-waged job?

Those dependents are dependents if they have a low paying job or no job. The fact that their life is only marginally better with a low paying job than no job is a function of the perverse incentives of the welfare state.

No, the (not)Republicans here have no understanding of economics or the actual costs of stuff. The price of a Big Mac going up 50c is a whole lot less than the person cooking it drawing welfare.

But... welfare marm!!!!

They (the (not)Republicans) not only would cut off their nose to spite their face, but they are too stupid to know that's what they are doing.

 

[JohnnySavage]

Addenda: I only read to the first question mark. I'm ideologically opposed to responding seriatim and only provide one answer per post.

 

[JohnnySavage]

The labor participation rate is a stupid metric that was designed when most workers were 9-5'ers. That's not how the work force operates today.

Example: Johnny is self-employed, works from home, bills about 10 hours per week and makes enough to buy his crust of bread. Am I in the participation rate figure? Answer: No I'm not.

 

[NeverEndingMe]

No, the (not)Republicans here have no understanding of economics or the actual costs of stuff. The price of a Big Mac going up 50c is a whole lot less than the person cooking it drawing welfare.

But... welfare marm!!!!

They (the (not)Republicans) not only would cut off their nose to spite their face, but they are too stupid to know that's what they are doing.

.... idiot

 

[KingOrfeo]

Those dependents are dependents if they have a low paying job or no job. The fact that their life is only marginally better with a low paying job than no job is a function of the perverse incentives of the . . .

. . . labor market in American capitalism.

 

[Que]

No, the (not)Republicans here have no understanding of economics or the actual costs of stuff. The price of a Big Mac going up 50c is a whole lot less than the person cooking it drawing welfare.

But... welfare marm!!!!

They (the (not)Republicans) not only would cut off their nose to spite their face, but they are too stupid to know that's what they are doing.

You might want to let the bean counters at McDonalds know they are leaving 50 cents per burger of profit on the table.

If raising labor costs causes even more automation or less sales and a reduction in workforce that is far costlier in welfare benefits to society.

That is not to say we should outlaw cars to keep buggy whip makers in business.

There are always positive and negative consequences of any action taken. Raising the minimum wage costs the poor more than it benefits them by removing entry level jobs from the marketplace and cementing poverty and dependence.

You obviously do not agree.

 

[Que]

The labor participation rate is a stupid metric that was designed when most workers were 9-5'ers. That's not how the work force operates today.

Example: Johnny is self-employed, works from home, bills about 10 hours per week and makes enough to buy his crust of bread. Am I in the participation rate figure? Answer: No I'm not.

I am pretty sure there are not 30,000,000 Johnny-level, qualified consultants that just didn't happen to get counted.

I have been "uncounted" in similar work. As an appraiser my work always bottlenecked in the middle of the month for 7-10 days. $50-$200 an hour is OK money if you could make the workflow consistent. When I was working 30-40-50 hours a week unpaid scrambling for assignments that I could actually accept and complete in a way that might result in another future assignment only to net $1000 a month it was time to get out. The problem with being self employed is no one ever evaluates whther you can afford to keep yourself employed or whther it is time to give yourself a pink slip. Well other than the back of envelope accounting that comes with not making your crust of bread.

Your particular consultancy might have utility in the current environment, mine and a lot of of other did not.

Architects and contractor consultants and model home decorators and lots of other self employed people are not working. The surveys actually do count you and your kind if they happen to call you. "Hey Johnny, didja earn your crust of bread this week?"

It isn't as if the labor participation rate is telling us something different than the household surveys.

 

[JohnnySavage]

You might want to let the bean counters at McDonalds know they are leaving 50 cents per burger of profit on the table.

If raising labor costs causes even more automation or less sales and a reduction in workforce that is far costlier in welfare benefits to society.

That is not to say we should outlaw cars to keep buggy whip makers in business.

There are always positive and negative consequences of any action taken. Raising the minimum wage costs the poor more than it benefits them by removing entry level jobs from the marketplace and cementing poverty and dependence.

You obviously do not agree.

Obviously not.


Corporate profits are at historic highs. In large part because the Minimum Wage isn't adjusted for inflation and the tax payers end up subsidizing their labor costs.

Wanna talk about the home mortgage interest tax deduction being another form of welfare, that if eliminated would balance the budget?

 

[RjThoughts]

Obviously not.


Corporate profits are at historic highs. In large part because the Minimum Wage isn't adjusted for inflation and the tax payers end up subsidizing their labor costs.

Wanna talk about the home mortgage interest tax deduction being another form of welfare, that if eliminated would balance the budget?

Most middle class home owners do not take it off their taxes - it's only available if you itemize your deductions.