Los Angeles Raises Minimum Wage to $15 an Hour
Goto page Previous  1, 2, 3, 4, 5, 6, 7  Next
 
Post new topic    LakersGround.net Forum Index -> Off Topic This topic is locked: you cannot edit posts or make replies.
View previous topic :: View next topic  
Author Message
ribeye
Franchise Player
Franchise Player


Joined: 10 Nov 2001
Posts: 12611

PostPosted: Thu May 21, 2015 6:01 am    Post subject:

SF's ordinance is very similar to LA's. Here's an article in Mother Jones with testimony from a comic book store owner:

Do Small Businesses Deserve Exemptions From the Minimum Wage?


Quote:
Raising the minimum wage by 43 percent (from $11.05 today to $15 in 2018) means that we need to generate at least another 80 grand in revenue. Eighty grand. I don't personally make eighty grand in a year. I'm not some kind of fat cat getting rich off the exploitation of my workers or something. And look, if I did manage to increase sales by that amount, I'd sure be hoping that I got to keep a tiny little percentage of it myself.

Quote:

. . . but when it comes down to it, there simply may not be much of a future for bricks-and-mortar comics stores in a city with astronomical real estate prices.


http://www.motherjones.com/kevin-drum/2015/05/small-businesses-exemptions-minimum-wage
_________________
"A metronome keeps time by using a Ringo"
Back to top
View user's profile Send private message Reply with quote
Aeneas Hunter
Retired Number
Retired Number


Joined: 12 Jul 2005
Posts: 31763

PostPosted: Thu May 21, 2015 7:19 am    Post subject:

^^^^

Let's do the math on that. $80,000 divided by $4/hour equals 20,000 hours. Does this guy with a comic book store have 10 full time employees at minimum wage? That story isn't making a lot of sense.

Edit: On further thought, I see where the guy is playing games. He's talking about revenue, not profits. In other words, he is assuming that he can't raise his prices.
Back to top
View user's profile Send private message Reply with quote
Reflexx
Franchise Player
Franchise Player


Joined: 25 Jun 2005
Posts: 11163

PostPosted: Thu May 21, 2015 7:26 am    Post subject:

No. 17 wrote:
Ziggy wrote:
My family has spent the last 30 years building up our businesses from the ground up. Our salary took a significant hit when minimum wage went up to $9, despite more than half the staff already earning $9 or above. Reason being, I had to give everyone a raise since they had enough experience to deserve more than the new min. wage. It effects the entire work force, not just the new inexperienced hires. Fortunately, I fostered a healthy work environment and had very little turnover. (Although many asked for less hours so they could qualify for federal aid for the health insurance they didn't want, but that's another discussion.)

We've been slowly increasing the prices of everything over the last few months. If it goes to $15/hr we are finished. Mom and pops WILL NOT survive $15 an hour. That is a 100% guarantee.

Minimum wage is meant to be an entry level wage. It's not meant to get you a new car and into the penthouse. If that's what you want, work harder and earn it. One of the coolest parts of my job is seeing ex-employees return to pay their respects to my family and I, and they're successful business owners of their own. Some are millionaires, even. They're my reminder that there was such a thing as an American dream. These people aren't highly educated. They're immigrants who understood a minimum wage job was there to keep them alive while they saved their money, invested wisely and moved up to the next greater opportunity. I was just a kid when some of them left us, but I see the pride in my parents' eyes when they come back to visit. It's a beautiful thing.

I can see very early on which employees are going to move up in the world and which are just killing time watching the clock tick by everyday. Yet I guess it's now my responsibility to support that lazy clock watcher for the rest of his life. Unfortunately, American born workers are allergic to hard work, so let's just fix that problem by paying them more. Brilliant.

My family is the only thing holding me here in CA. I'd sell off our businesses and move if I could. Working my ass off 90 hour weeks for our businesses, taking all the risks and losses, for what? What is the point anymore? When are we going to realize businesses need incentives to keep people employed? How much can we keep taking from the ones who are putting their life savings on the line in search of the American dream? I'm so sick of this nonsense, I swear I'm ready to lose it one of these days. The American dream is DEAD. Americans want it all and they want it to come EASY. No one wants to work for success anymore.

Congratulations, you swung your sledge hammer at the walmarts and mcdonalds of the world and barely made a dent. Mom and pops are the collateral damage. I don't even recognize what this country is becoming.





Back to top
View user's profile Send private message Reply with quote
DaMuleRules
Retired Number
Retired Number


Joined: 10 Dec 2006
Posts: 52624
Location: Making a safety stop at 15 feet.

PostPosted: Thu May 21, 2015 7:27 am    Post subject:

Aeneas Hunter wrote:
^^^^

Let's do the math on that. $80,000 divided by $4/hour equals 20,000 hours. Does this guy with a comic book store have 10 full time employees at minimum wage? That story isn't making a lot of sense.


Not to mention that in SF, the real threat to small brick and mortars is the ever increasing and astronomical real-estate rental prices. (And really, as they increase he may not have to worry about paying employees because there will be no one who can afford to live in the city to even work in his store)

But by all means, let's focus on helping people making a living wage as being the problem.
Back to top
View user's profile Send private message Reply with quote
Reflexx
Franchise Player
Franchise Player


Joined: 25 Jun 2005
Posts: 11163

PostPosted: Thu May 21, 2015 7:28 am    Post subject:

Aeneas Hunter wrote:
^^^^

Let's do the math on that. $80,000 divided by $4/hour equals 20,000 hours. Does this guy with a comic book store have 10 full time employees at minimum wage? That story isn't making a lot of sense.

Edit: On further thought, I see where the guy is playing games. He's talking about revenue, not profits. In other words, he is assuming that he can't raise his prices.


If comic books are the same as they used to be, then the price is printed right on the cover.
Back to top
View user's profile Send private message Reply with quote
DuncanIdaho
Franchise Player
Franchise Player


Joined: 26 Apr 2004
Posts: 17196
Location: In a no-ship

PostPosted: Thu May 21, 2015 7:49 am    Post subject:

ribeye wrote:
SF's ordinance is very similar to LA's. Here's an article in Mother Jones with testimony from a comic book store owner:

Do Small Businesses Deserve Exemptions From the Minimum Wage?


Quote:
Raising the minimum wage by 43 percent (from $11.05 today to $15 in 2018) means that we need to generate at least another 80 grand in revenue. Eighty grand. I don't personally make eighty grand in a year. I'm not some kind of fat cat getting rich off the exploitation of my workers or something. And look, if I did manage to increase sales by that amount, I'd sure be hoping that I got to keep a tiny little percentage of it myself.

Quote:

. . . but when it comes down to it, there simply may not be much of a future for bricks-and-mortar comics stores in a city with astronomical real estate prices.


http://www.motherjones.com/kevin-drum/2015/05/small-businesses-exemptions-minimum-wage


I'm surprised the internet hasn't wiped out his business already like it has many small stores. Especially in a city with the most expensive real estate on the market, his days were numbered already. He needs to get rid of that astronomical cost and transform his business for an era when anyone can buy anything they want with the click of a button, or he'll die out like many other businesses.
Back to top
View user's profile Send private message Reply with quote
ribeye
Franchise Player
Franchise Player


Joined: 10 Nov 2001
Posts: 12611

PostPosted: Thu May 21, 2015 8:13 am    Post subject:

DuncanIdaho wrote:
ribeye wrote:
SF's ordinance is very similar to LA's. Here's an article in Mother Jones with testimony from a comic book store owner:

Do Small Businesses Deserve Exemptions From the Minimum Wage?


Quote:
Raising the minimum wage by 43 percent (from $11.05 today to $15 in 2018) means that we need to generate at least another 80 grand in revenue. Eighty grand. I don't personally make eighty grand in a year. I'm not some kind of fat cat getting rich off the exploitation of my workers or something. And look, if I did manage to increase sales by that amount, I'd sure be hoping that I got to keep a tiny little percentage of it myself.

Quote:

. . . but when it comes down to it, there simply may not be much of a future for bricks-and-mortar comics stores in a city with astronomical real estate prices.


http://www.motherjones.com/kevin-drum/2015/05/small-businesses-exemptions-minimum-wage


I'm surprised the internet hasn't wiped out his business already like it has many small stores. Especially in a city with the most expensive real estate on the market, his days were numbered already. He needs to get rid of that astronomical cost and transform his business for an era when anyone can buy anything they want with the click of a button, or he'll die out like many other businesses.


Yes, I hate to be so callous to say, if a minimum wage increase puts you out of business, then maybe your business model was not meant to be, but in some cases, this is simply true. Still, I am an advocate of small business, as are nearly everyone in this country I suspect, and taking into consideration that they often run on such small margins should be a factor when determining minimum wage increases.
_________________
"A metronome keeps time by using a Ringo"
Back to top
View user's profile Send private message Reply with quote
Aussiesuede
Franchise Player
Franchise Player


Joined: 27 Jul 2005
Posts: 10964

PostPosted: Mon Jun 01, 2015 5:38 pm    Post subject:

Quote:
The California Senate has approved a plan to again raise California's minimum wage, lifting it to $13 an hour in 2017, then tied to the rate of inflation after that.

Senators on Monday approved the bill, SB3 by Sen. Mark Leno, on a 23-15 vote, with Republican lawmakers opposed.

The proposal by the San Francisco Democrat comes just two years after Gov. Jerry Brown signed legislation giving California one of the highest minimum wage rates in the nation. It is currently $9 an hour and will rise to $10 an hour in 2016.


State Minimum Wage to $13/hr
_________________
I'm On point, On task, On message, and Off drugs. A Streetwise Smart Bomb, Out of rehab and In denial. Over the Top, On the edge, Under the Radar, and In Control. Behind the 8 ball, Ahead of the Curve and I've got a Love Child who sends me Hate mail.
Back to top
View user's profile Send private message Reply with quote
exempt
Starting Rotation
Starting Rotation


Joined: 19 May 2015
Posts: 593

PostPosted: Mon Jun 01, 2015 6:00 pm    Post subject:

hey that means I'm going to get a raise!
Back to top
View user's profile Send private message Reply with quote
Omar Little
Moderator
Moderator


Joined: 02 May 2005
Posts: 90299
Location: Formerly Known As 24

PostPosted: Mon Jun 01, 2015 6:05 pm    Post subject:

Aussiesuede wrote:
Quote:
The California Senate has approved a plan to again raise California's minimum wage, lifting it to $13 an hour in 2017, then tied to the rate of inflation after that.

Senators on Monday approved the bill, SB3 by Sen. Mark Leno, on a 23-15 vote, with Republican lawmakers opposed.

The proposal by the San Francisco Democrat comes just two years after Gov. Jerry Brown signed legislation giving California one of the highest minimum wage rates in the nation. It is currently $9 an hour and will rise to $10 an hour in 2016.


State Minimum Wage to $13/hr


That's important to La's situation. If adjacent areas can't undercut, it improves the efficacy of a wage.
Back to top
View user's profile Send private message Reply with quote
KobeBryantCliffordBrown
Star Player
Star Player


Joined: 28 Apr 2008
Posts: 6429

PostPosted: Mon Jun 01, 2015 6:19 pm    Post subject:

DuncanIdaho wrote:
ribeye wrote:
SF's ordinance is very similar to LA's. Here's an article in Mother Jones with testimony from a comic book store owner:

Do Small Businesses Deserve Exemptions From the Minimum Wage?


Quote:
Raising the minimum wage by 43 percent (from $11.05 today to $15 in 2018) means that we need to generate at least another 80 grand in revenue. Eighty grand. I don't personally make eighty grand in a year. I'm not some kind of fat cat getting rich off the exploitation of my workers or something. And look, if I did manage to increase sales by that amount, I'd sure be hoping that I got to keep a tiny little percentage of it myself.

Quote:

. . . but when it comes down to it, there simply may not be much of a future for bricks-and-mortar comics stores in a city with astronomical real estate prices.


http://www.motherjones.com/kevin-drum/2015/05/small-businesses-exemptions-minimum-wage


I'm surprised the internet hasn't wiped out his business already like it has many small stores. Especially in a city with the most expensive real estate on the market, his days were numbered already. He needs to get rid of that astronomical cost and transform his business for an era when anyone can buy anything they want with the click of a button, or he'll die out like many other businesses.


It's true. In the last couple of weeks, I've bought several math books for my daughters, a trumpet technical studies book for myself, a couple of lamps, a mattress, a knife set and cutting board, tickets to several concerts. All online.
_________________
“It took many years of vomiting up all the filth I’d been taught about myself, and half-believed, before I was able to walk on the earth as though I had a right to be here.”
― James Baldwin, Collected Essays
Back to top
View user's profile Send private message Reply with quote
jonnybravo
Retired Number
Retired Number


Joined: 21 Sep 2007
Posts: 30619

PostPosted: Tue Jun 02, 2015 1:17 am    Post subject:

Aeneas Hunter wrote:
^^^^

Let's do the math on that. $80,000 divided by $4/hour equals 20,000 hours. Does this guy with a comic book store have 10 full time employees at minimum wage? That story isn't making a lot of sense.

Edit: On further thought, I see where the guy is playing games. He's talking about revenue, not profits. In other words, he is assuming that he can't raise his prices.


I'm not sure how familiar you are with comic books but you can't raise your prices. Well I suppose you can and take a shotgun to your foot, but the prices for new comics are set by the comic book companies themselves. It's printed right on the cover of the comics themselves. It's kind of like selling a newspaper or magazine. If you run a stand, you're selling it at cover price...anything else would be...yeah.
Back to top
View user's profile Send private message Reply with quote
Aussiesuede
Franchise Player
Franchise Player


Joined: 27 Jul 2005
Posts: 10964

PostPosted: Thu Sep 10, 2015 2:05 pm    Post subject:

Quote:
New York state will gradually raise the minimum wage for fast-food workers to $15 an hour — the first time any state has set the minimum that high.

Gov. Andrew Cuomo's administration formally approved the increase Thursday — a move the Democratic governor announced at a labor rally with Vice President Joe Biden. Cuomo said he will work to pass legislation setting a $15 minimum for all industries — a promise that comes as more and more cities around the country move toward a $15 minimum wage.

"Every working man and woman in the state of New York deserves $15 an hour," the governor told the enthusiastic crowd of union members. "We're not going to stop until we get it done."

Biden predicted the $15 wage for fast-food workers would galvanize efforts across the country.

"You're going to make every single governor in every single state in America look at themselves," he said at the rally in New York City. "It's going to have a profound impact."

He said he and President Barack Obama also remain committed to raising the federal minimum wage to $12 an hour.

The wage hike for fast-food workers in New York will be phased in over three years in New York city and over six years elsewhere in the state. It will apply to some 200,000 employees at large chain restaurants.


New York Approves $15/hr for Fast Food
_________________
I'm On point, On task, On message, and Off drugs. A Streetwise Smart Bomb, Out of rehab and In denial. Over the Top, On the edge, Under the Radar, and In Control. Behind the 8 ball, Ahead of the Curve and I've got a Love Child who sends me Hate mail.
Back to top
View user's profile Send private message Reply with quote
Aussiesuede
Franchise Player
Franchise Player


Joined: 27 Jul 2005
Posts: 10964

PostPosted: Sun Mar 13, 2016 3:49 pm    Post subject:

24 wrote:
That's important to La's situation. If adjacent areas can't undercut, it improves the efficacy of a wage.





The University of Washington Study that's been contracted by the Seattle of Seattle to study the effects of the wage increases is finally starting to deliver so usable and credible data. Prior to the increases, I too had concerns about the effect of such disparate base wages prevailing in such a relatively small geographical area. Some of the early data is very surprising and as such, it's still too early to draw any credible conclusions since nothing is really moving along as either side had anticipated.

For those who are unaware of geographical makeup of the Seattle Metro region, here is a little primer:

1) Seattle Metro Region Population = Approx 3.6 million
2) Seattle City Population (Wage Region) = 670,000
3) Greater Seattle Business Region within 20 miles of Seattle = 720,000

So this places Seattle in a rather unique position to study. Currently the minimum wage in the Greater Seattle Business region is $9.47/hr vs within the Seattle city limits is $13/hr. The early results of the study are a bit surprising in some of the following ways:

The study had complied prices from a number of business categories and types that most intensively employ near the lower end of the wage strata.

Examples:

1) 126 selected common grocery items were priced both inside the Seattle City limits, as well as outside the city limits within the Greater Seattle business region and that basket of groceries saw an average cost increase of about $3 higher within Seattle vs outside of Seattle.

2) Restaurant prices increased an average of 4.4% within Seattle city limits vs a 3.1% increase outside of the city limits (a bit surprising)

3) Region wide, Restaurant prices have increase by about 8% since 2013, before the start of Seattle wage increases. This compares to a 6% increase in the 3 years period prior to the wage increase.



Thus far, it's a bit surprising that the city vs county price disparities haven't materialised. Also surprising is that there doesn't seem to have been an influx of low wage workers seeking out higher paying work. Even though a dishwasher across the bridge in Bellevue is earning $9.47/hr, the lure of and additional $3.53/hr for the same work hasn't been enough to entice him to endure the short commute and come across the bridge to work in Seattle (at least not in any statistically significant numbers) And the "widget" makers who employ low wage workers haven't been running out of the city limits to save the $3.57/ worker hour at any statistically significant levels (This is probably an area where the regions horrendous traffic has balanced out the equation)

Of course, we won't know the full effects for some time to come, but the early indicators aren't really tracking with where either side was predicting. All-n-all business haven't been closing enmasse, instead electing to attempt greater productivity - and prices have not been skyrocketing. I don't think we'll truly learn much of value until the economy finally starts to cool off. This cities economy is simply too red hot at the moment to glean anything meaningful.



University of Washington Wage Study
_________________
I'm On point, On task, On message, and Off drugs. A Streetwise Smart Bomb, Out of rehab and In denial. Over the Top, On the edge, Under the Radar, and In Control. Behind the 8 ball, Ahead of the Curve and I've got a Love Child who sends me Hate mail.
Back to top
View user's profile Send private message Reply with quote
Aussiesuede
Franchise Player
Franchise Player


Joined: 27 Jul 2005
Posts: 10964

PostPosted: Sat Jun 04, 2016 1:18 pm    Post subject:

The next "EarthQuake" for business's to deal with in the way of worker rights that's due to follow the battle in wages is: Scheduling Predictability:


Quote:

Seattle officials are considering new rules for another aspect of working life — scheduling. In retail and food service particularly, low-wage workers often face unpredictable schedules, say advocates. Businesses say they’re wary of onerous and inflexible regulations.

Jerry Cole has a landscaping business. Four years ago, in order to make ends meet, he took on a second job as a courtesy clerk at the Rainier Beach Safeway.
Starbucks says scheduling has improved

Changes in schedule software and policies described

But the scheduling demands of the second job — including erratic hours and a schedule that isn’t posted until three days before the workweek starts — makes it difficult to do his first job.
Quote:

“It’s hard to schedule my landscaping business with clients on a regular basis because I’m having to juggle my landscaping around when I have to be at Safeway week to week,”


Stories from workers such as Cole are spurring some Seattle City Council members and Mayor Ed Murray to devise a scheduling law that could affect thousands of workers and many retailers in the city.

Business groups, including the Washington Restaurant Association, seem to accept that some kind of scheduling regulations are coming down the pike, and are quietly striving for rules that won’t be too onerous or inflexible.



Quote:

In the two official working groups, ideas on the table from the workers’ representatives include:

• Two weeks’ advance notice of schedules

• A minimum of 11 hours’ rest between shifts, except when workers voluntarily choose to work with less rest

• An hour of additional “predictability pay” when an employer changes a worker’s posted schedule

• Up to four hours’ pay for workers who are assigned shifts that are either canceled, or reduced to less than four hours, with less than 24 hours notice

• Offers of additional hours must go to existing part-time employees before new employees can be hired

Some business representatives have suggested more limited measures, including:

• One week advance notice of schedules

• 10 hours’ rest between shifts

• An hour of additional “predictability pay” only for changes to the posted schedule initiated by employers



Seattle would be following in the footsteps of San Francisco, which in 2014 became the first city to pass such laws.

After minimum-wage raises, scheduling issues have become a focus by advocates for some of the country’s lowest-paid workers.

Across the country, “more workers are facing more erratic scheduling,” said Lonnie Golden, a professor of economics and labor-employment relations at Penn State Abington and a research associate at Economic Policy Institute. “That’s always happened but it’s more intensive than it used to be and more pervasive.”

The causes include a labor surplus, pressure on retailers to keep prices low, and scheduling software that allows retailers to minimize their workforce to keep expenses down.



Govts ReEstablishing That Business is a Partnership with Employees, Not Paid Slavery


And the writing is on the wall. After 40 years os sustained erosion of workers rights by due in large part to the war on Unions - Govts are finally starting to step in an undue some of that 40 years of efforts with the stroke of a pen. That's one of the big reasons rightees hate strong government. They don't think their efforts should be able to be nuetralised so easily. They feel it's their inherent "Right" to disadvantage in any manner deem necessary because "It's Just Business" and business needs trump citizen needs.
_________________
I'm On point, On task, On message, and Off drugs. A Streetwise Smart Bomb, Out of rehab and In denial. Over the Top, On the edge, Under the Radar, and In Control. Behind the 8 ball, Ahead of the Curve and I've got a Love Child who sends me Hate mail.
Back to top
View user's profile Send private message Reply with quote
Theseus
Franchise Player
Franchise Player


Joined: 15 Dec 2007
Posts: 13855

PostPosted: Sat Jun 04, 2016 4:38 pm    Post subject:

jonnybravo wrote:
Aeneas Hunter wrote:
^^^^

Let's do the math on that. $80,000 divided by $4/hour equals 20,000 hours. Does this guy with a comic book store have 10 full time employees at minimum wage? That story isn't making a lot of sense.

Edit: On further thought, I see where the guy is playing games. He's talking about revenue, not profits. In other words, he is assuming that he can't raise his prices.


I'm not sure how familiar you are with comic books but you can't raise your prices. Well I suppose you can and take a shotgun to your foot, but the prices for new comics are set by the comic book companies themselves. It's printed right on the cover of the comics themselves. It's kind of like selling a newspaper or magazine. If you run a stand, you're selling it at cover price...anything else would be...yeah.


I was just at a comic book store in WeHo and the prices were printed on orange stickers on the outside of the comic sleeves. Plus the toys and t-shirts all were marked with similar stickers.

The location is kind of famous, so I guess they can get away with the mark-up more than other comic stores might be able to
Back to top
View user's profile Send private message Reply with quote
Aussiesuede
Franchise Player
Franchise Player


Joined: 27 Jul 2005
Posts: 10964

PostPosted: Mon Jul 25, 2016 4:00 pm    Post subject:

Quote:
Seattle’s labor market has thrived since the city became the first major metropolis in the country to pass a law setting its minimum wage on a path to $15 per hour.

The city’s job-growth rate has been triple the national average.

The report looks at records from Washington state’s Employment Security Department from when the law was passed, in June 2014, through the end of last year.

The multistep law went into effect in April 2015, when the city’s minimum wage became $10 or $11, depending on business size, tips and benefits. Another hike occurred on Jan. 1, 2016. By 2021, the minimum will be $15 per hour for all workers.

During the period covered in the report, typical low-wage workers in Seattle saw their pay increase from $9.96 per hour to $11.14 per hour. Their employment rate and their number of hours increased, as did their overall earnings, according to the report.

Seattle’s experience shows that the city’s low-wage workers did relatively well after the minimum wage increased, but largely because of the strong regional economy,”

Quote:
“We do not find compelling evidence that the minimum wage has caused significant increases in business failure rates,” the report says.


Many employers said they’d be raising prices. But an analysis of grocery stores, restaurants and other stores by the UW team found little to no evidence of that.


1st Official Study: Wage Increase Effect on Economy is Nil



There are some angry Chicken Littles out there right about now. Highest minimum wage in the country and still growing jobs at TRIPLE the national rate. Things will get really interesting when the economy finally starts to cool off. If the region doesn't experience a protracted crashing effect, then the low wage era will be put on life support.
_________________
I'm On point, On task, On message, and Off drugs. A Streetwise Smart Bomb, Out of rehab and In denial. Over the Top, On the edge, Under the Radar, and In Control. Behind the 8 ball, Ahead of the Curve and I've got a Love Child who sends me Hate mail.
Back to top
View user's profile Send private message Reply with quote
ExPatLkrFan
Star Player
Star Player


Joined: 29 Jul 2004
Posts: 3982
Location: Mukdahan, Thailand

PostPosted: Mon Jul 25, 2016 5:24 pm    Post subject:

Enjoy your 6 dollar donuts.
Back to top
View user's profile Send private message Yahoo Messenger Reply with quote
mhan00
Retired Number
Retired Number


Joined: 13 Apr 2001
Posts: 32025

PostPosted: Mon Jul 25, 2016 11:19 pm    Post subject:

ExPatLkrFan wrote:
Enjoy your 6 dollar donuts.


Lol. That's something that detractors like to cry out: "The cost of goods and services will skyrocket!" There isn't a ton of real world evidence for it when comparing prices between areas with different wage requirements, though. While it's certainly related, the effect of higher wages on the price of goods, when studied, hasn't been nearly as strong as people assumed.

The other statement is: "Jobs will go away and unemployment will boom when wages rise!" Seems like common sense, but when actually studied didn't always bear out in the real world. Our economy is far too complex to be able to make simple assumptions based upon the changing of one variable. Like others have pointed out, Seattle, NY, and CA will provide some good real world data we can study to draw actual real conclusions.
Back to top
View user's profile Send private message ICQ Number Reply with quote
ExPatLkrFan
Star Player
Star Player


Joined: 29 Jul 2004
Posts: 3982
Location: Mukdahan, Thailand

PostPosted: Tue Jul 26, 2016 4:21 am    Post subject:

Will skyrocket? They have them already. I am going from a post on Facebook from my daughter. I saw the picture. I was the only one shocked at the price. I don't know about you man, but if I'm paying 6 bucks for a donut it better have 11 brothers with it. Or it better be one mighty special donut.
Back to top
View user's profile Send private message Yahoo Messenger Reply with quote
No. 17
Star Player
Star Player


Joined: 29 Dec 2007
Posts: 7040
Location: L.A

PostPosted: Tue Jul 26, 2016 11:35 am    Post subject:

mhan00 wrote:
ExPatLkrFan wrote:
Enjoy your 6 dollar donuts.


Lol. That's something that detractors like to cry out: "The cost of goods and services will skyrocket!" There isn't a ton of real world evidence for it when comparing prices between areas with different wage requirements, though. While it's certainly related, the effect of higher wages on the price of goods, when studied, hasn't been nearly as strong as people assumed.

The other statement is: "Jobs will go away and unemployment will boom when wages rise!" Seems like common sense, but when actually studied didn't always bear out in the real world. Our economy is far too complex to be able to make simple assumptions based upon the changing of one variable. Like others have pointed out, Seattle, NY, and CA will provide some good real world data we can study to draw actual real conclusions.


Quote:
The $15 minimum wage increase in the Seattle area “is getting off to a pretty bad start,” according to a new report.

Data shows that the Seattle Metropolitan Statistical Area (MSA) lost 700 restaurant jobs from January to September of this year, and a report from the American Enterprise Institute suggests that this could be the product of adverse effects of minimum wage hikes on restaurant jobs.

“What is also noteworthy about the loss of Seattle restaurant jobs this year is the fact that restaurant employment in the rest of Washington state is booming this year,” writes Mark Perry, an AEI scholar and professor of economics and finance at the University of Michigan’s Flint campus.

A report by Perry, published Wednesday on AEI’s public policy blog Carpe Diem, notes that there has been an increase of 5,800 new restaurant job positions in the rest of the state of Washington.

While the overall job growth rate this year for the Seattle MSA is higher than the national average, the drop in restaurant jobs stands out. The past three years have seen restaurant employment in the Seattle MSA area at an average job gain of almost 4,000 employees during January-September, according to Perry’s work.

“One likely cause of the stagnation and decline of Seattle area restaurant jobs this year is the increase in the city’s minimum wage,” Perry wrote.

The Seattle City Council passed a $15 minimum wage ordinance that is currently being phased in. On April 1, the minimum wage jumped to $11 per hour.

But correlation does not necessarily mean causation.

Salim Furth, a research fellow in macroeconomics at The Heritage Foundation, points out that the data numbers are for a metropolitan statistical area. The data includes 600,000 people who live in Seattle and 3 million people who live in cities and suburbs that aren’t affected by the Seattle minimum wage ordinance.

“It’s too soon to tell for sure, but there is already some preliminary evidence that the recent minimum wage hike to $11 an hour, along with the pending increase of an additional $4 an hour by 2017 for some businesses, has started having a negative effect on restaurant jobs in the greater Seattle area,” Perry wrote.

James Sherk, research fellow in labor economics at The Heritage Foundation, notes to The Daily Signal that the AEI data is suggestive evidence but by itself does not prove that the minimum wage caused the drop in jobs.

Sherk says the United States does not have much historical experience with high minimum wages, “but what we have is bad.”

For example, in American Samoa (a Pacific island chain that is a United States territory), a $7.25 minimum wage increase was applied in 2007 by Congress.

“This would be the economic equivalent of raising the minimum wage to $20.00 an hour in the continental U.S.,” Sherk’s research states.

“American Samoans have a largely separate economy and considerably lower incomes than residents of the continental United States.”

According to Sherk, the American Samoa tuna canning industry minimum wage stood at $3.26 per hour in the beginning of 2007.

After wage hikes started to apply, canned tuna industry employers began to lay off and cut hours of employees. One cannery shut down in 2009.

“Samoan employers responded to higher labor costs the way economic theory predicts: by hiring fewer workers,” Sherk wrote. “Congress hurt the very workers it intended to help.”

http://dailysignal.com/2015/10/22/seattle-hiked-the-minimum-wage-to-15-an-hour-heres-what-happened-to-seattles-job-market/
_________________
It's winnin' time!
Back to top
View user's profile Send private message Reply with quote
Aussiesuede
Franchise Player
Franchise Player


Joined: 27 Jul 2005
Posts: 10964

PostPosted: Tue Jul 26, 2016 2:06 pm    Post subject:

^^^^^ And for the facts, someone decided to actually start asking owners why they were closing restuarants and the owners themselves called complete BS on the conservative talking points that were being spread last year:

Quote:
The claim: Recent Seattle restaurant closures may have been linked to the city’s new $15 minimum wage.

What we found: False.

An article suggesting the $15-an-hour minimum wage was a factor in some recent Seattle restaurant closures caught fire with national and conservative media this week. The only problem: When we asked the restaurateurs in question, they said it’s flat wrong.

“Why Are So Many Seattle Restaurants Closing Lately?” asks Seattle Magazine. Two Seattle restaurants shut down in February, the piece explains, while another will close later this month, another in May. There’s general discussion of the various reasons restaurants close (location, etc.), after which the writer turns to “another key consideration … the impending minimum wage hike to $15 per hour.”

Renee Erickson is closing Boat Street Cafe, her first restaurant, but she runs three others and is in the process of opening two more. Asked in an email about the closure being associated with $15, she replied:
Quote:
“That’s weird, ha. No, that’s not why I’m closing Boat Street. Would have said so.”


Erickson continued,
Quote:
“I’m totally on board with the $15 min. It’s the right thing to do … Opening more businesses would not be smart if I felt it was going to hinder my success.”


Little Uncle proprietors Poncharee Kounpungchart (who goes by PK) and Wiley Frank are closing one location, having found the space unsuitable after two years, while remaining open on Capitol Hill and considering new opportunities.

Quote:
“We were never interviewed for these articles and we did not close our … location due to the new minimum wage,” Kounpungchart and Frank said in an email. “We do not know what our colleagues are doing to prepare themselves for the onset of the new law, but pre-emptively closing a restaurant seven years before the full effect of the law takes place seems preposterous to us.”


Frank went so far as to send a note to the author of the Washington Policy Center post saying:

Quote:
“Our business model is conducive to the changing times and we would appreciate it if you did not make assumptions about our business to promote your political values.”



Shanik proprietor Meeru Dhalwala, who is also mentioned by Seattle Magazine, said in a Facebook message,

Quote:
“My closure is strictly due to location — nothing to do with wages.”



Sharon Fillingim, the owner of Grub, the final restaurant referenced, said on Facebook that Grub was “a huge success.” In fact, the restaurant was sold and is reopening imminently under new ownership as Bounty Kitchen.


When it comes to the impact the $15 wage will have on restaurants, University of Washington researchers, University of California, Berkeley, researchers and an owner of seven local Subways agree that restaurants will have to raise their prices about 4 to 5 percent — meaning an additional nickel per dollar on Seattle restaurant checks.

Now that $15 is a fait accompli, even the WRA’s Anton said in a phone interview, “It’s nothing to be afraid of, it’s just something to be aware of. There will be changes, but we’ll make them, and we’ll figure it out.”



Chicken Littles Fantasies Not Coming to Fruition
_________________
I'm On point, On task, On message, and Off drugs. A Streetwise Smart Bomb, Out of rehab and In denial. Over the Top, On the edge, Under the Radar, and In Control. Behind the 8 ball, Ahead of the Curve and I've got a Love Child who sends me Hate mail.
Back to top
View user's profile Send private message Reply with quote
No. 17
Star Player
Star Player


Joined: 29 Dec 2007
Posts: 7040
Location: L.A

PostPosted: Tue Jul 26, 2016 3:11 pm    Post subject:

Quote:
Across the country today, thousands of workers at fast food restaurants and retailers are expected to lobby to raise the minimum wage to $15 per hour in what organizers are billing as the largest wage protests in American history. Rallies are scheduled to take place in 230 cities in California, Illinois, Michigan, New York and other states.

But while most of the attention will focus on corporate franchises such as McDonald’s, and big retail chains like Walmart, raising the minimum wage could also have a big, and widely varying, impact on small businesses across the country, which employ nearly half of America’s private sector workforce.

Raising the minimum wage is often cast largely as a necessity to ensure that many workers are able to earn a decent living. But it’s also a complex issue with implications beyond those who flip burgers, clean offices and bag groceries.

An example of this complexity is playing out in Oakland, California, where a 36% increase in minimum wage – from the statewide minimum of $9 to $12.25 – took effect last month. Some restaurants have responded by raising the price of their food by as much as 20%, or adding a mandatory service charge and doing away with voluntary tips. They are experimenting with different approaches to see if they can find a balance: paying a decent wage without driving customers away.

Some have said that, aside from the increased direct cost of doing business from salaries, they are also paying more for goods and services in the community. Will higher prices also raise the cost of living for employees, chipping away at the benefit of the higher wages?

Protestors rally and close down a McDonald’s restaurant in downtown Oakland as hundreds of fast-food workers throughout the city join in on a worldwide campaign for higher pay and the right to form a union.
Protestors rally and close down a McDonald’s restaurant in downtown Oakland as hundreds of fast-food workers throughout the city join in on a worldwide campaign for higher pay and the right to form a union. Photograph: Kim Kulish/Kim Kulish/Corbis
Seattle, the first big US city to pass a $15 minimum wage last year, began phasing in higher wages – in a planned decade-long transition – this month. Meanwhile, San Francisco is raising its minimum wage from $11.05 this year to $15 by mid 2018. Last October, Berkeley raised the pay rate to $10, and will increase that to $11 by this October, and to $12.53 next year. The federal minimum wage is $7.25.

“Fight for $15 has been very successful,” said Ken Jacobs, chair of the Labor Center at UC Berkeley. “They completely raised the bar on what people consider necessary and possible.”

We’re now asking small business owners, managers and employees around the country to discuss how a $15 wage would affect them. Here are their comments, which we’ll update throughout the day:

Fight for $15: workers across US protest to raise minimum wage – as it happened
Protesters gather in many US cities to spur action for a ‘living wage’ of $15 an hour. Follow all the updates in our live blog
Read more
Jeremy Vela, an employee at Shakespeare & Co. bookstore - Berkeley, California
We are an independent bookstore. You are not going to get rich working here; you do it because you enjoy it.

It costs a lot to live here. I grew up in Berkeley and all the people I know don’t live here anymore. $15 an hour will have a big impact on people who make the minimum wage. They will be able to buy better food and eat healthier.

Xander Kahle, an employee at Bear Basics gift shop - Berkeley, California
Kahle graduated from Berkeley last semester. He works 30 hours a week at Bear Basics, where he’s currently making $10.50 an hour, just above the city’s minimum wage.

It’d be great to raise the wage to $15. If you are trying to live off $10 an hour and you are not working 40 hours a week – well, it’s impossible. The cost of living is high here. I live in a co-op and work 5-8 hours there a week, and the food is provided for. I can pull it off, but barely.

Karen Heisler, co-owner of Mission Pie bakery – San Francisco, California
San Francisco has a law to increase the minimum wage to $15 by 2018. It also requires employers with an employee pool of Mission Pie’s size to pay $1.63 per hour per employee for healthcare. Heisler, who pays above minimum wage and offers her workers a 401(k), pointed out that the law doesn’t address the pay disparity between the kitchen staff and the wait staff.

My concern is that the minimum wage increase doesn’t consider the disparity in businesses that have tips and commissioned employees. It’s a pitiful aspect of the food industry that there’s a pay hierarchy. I think it’s hard for people to understand that.

Our business is dedicated to proving high quality food at as low a price as we can, but we won’t have room to achieve that. The most expensive meal on the menu is $8.50, a stew with vegetables and rice. Raising the minimum wage will have a huge impact, not this year but ultimately. It will probably require us to hire more experienced and skillful people. We will see a decrease in the number of businesses in the 20-employee range because it’s becoming impossible to make it because of the cost of operation.

Becka Hare, a barista at Love coffee shop – Santa Monica, California
I don’t think I’d like to see minimum wage increase that much because labor cost is such a high expense for so many coffee shops and restaurants that I think the long term effect will be more detrimental.


Jane McGinn, owner of Sweet Jane’s frozen desserts – Astoria, New York
At this point, as a startup, it would put me out of business. It would also hurt my employees. Right now, my workers are all high school kids who are cutting their teeth on their first jobs. If the minimum wage went to $15, I would have to hire someone with management experience, which would take the kids out of the running.

I don’t think that entry-level jobs should be paid a minimum wage. We can’t go that way without a major overhaul to the economy.


Marco Giannini, CEO of Protein For Pets – Los Angeles, California
We are actively planning for an increase over the next three years. We do have an advantage because we’ve been around for less than two years and our systems have scalability and efficiency in mind. A company with older systems will have a more difficult approach. I think smaller store formats, such as Protein For Pets, and a decreased products offering is one way to tackle the issue. Also companies should look to outsourcing more technology and services.

Coffee shop owner – Venice, California
A Venice-based coffee shop owner, who asked to remain anonymous because she wished to avoid scrutiny from California’s Employment Development Department, said that a minimum wage increase would shut down her business.

Labor is 30% of my overhead. A 50% increase in minimum wage would raise it to 45%. It’s already tough to offer a business to the community and keep my head above water. Honestly, I’d go under with that kind of increase. For most this is a first time job – they come to me with no experience. Others make tips which supplements their wage.

Joy Lung, owner of TMJoy Boutique – Oakland, California
How do you help everyone make a decent living? But how do you evaluate what’s an equitable wage? It’s difficult. When I was doing landscaping design, I always paid above minimum wage. But here in clothing retail, people don’t sweat or likely hurt themselves. There’s a lot of down time. We pay different wages for different work, so we have to balance that. Other businesses that generate more revenues can better accommodate wage increases. Raising the minimum wage cuts into the profits, and it’s a lot for a small business.

Anna Reyes, employee at Burrito Express, a small burrito chain – Oakland, California
I was already making over the minimum wage, so I got a $2 increase while others who were making less got more. Increasing the minimum wage is a good thing, but everything else is going up, too. So, are you better off? Small businesses like ours might have to cut hours.

My goal is to have my own business one day. It’s going to be expensive to run it if you raise the minimum wage. It seems like the more you make, the more you have to pay.

Andrew Schiller, CEO of data company Location – Worcester, Massachusetts
None of our employees are working for minimum wage. Even our part-time employees make 10-20% over more than the new proposed minimum wage. We believe in treating, and paying, our people well, and all we expect in return is for we expect them to appreciate how they are treated. We’ve only had one person leave in six years.

If the rise in minimum wage had a ripple effect that ended up pushing our hourly employees to ask for more money, I would hope they would look at the entire compensation package, flexibility in scheduling, frequent free lunches, the access to 401(k), casual environment and more, and think of the entire package that we provide as an employer.

Aunt Mary’s Café – Oakland, California
To raise wages to $15 an hour, Aunt Mary’s Cafe instituted a 15% service charge, 60% of which goes to the servers while 40% to the kitchen crew. A sign at the cash register suggests an additional 3-5% of tip that will go only to your server if you like the service.

Aunt Mary’s owner, Jack Stewart, said he opted for the service fee to bridge the pay gap between the kitchen and wait staff. Servers generally make $25-$35 an hour, including tips, while the cooks made around $15 before the new service charge went into effect.

The service charge would be split among servers and cooks, which would give servers roughly the same income if they also get a 5% tip, but would mainly help to boost the cooks’ pay to closer to $20, he said.

“We support Oakland’s minimum wage increase, and we are all trying to give the back of the house a wage increase,” Stewart said.

Starla Garvey, Aunt Mary’s manager, said: “I support raising the minimum wage. But the overhead cost has gone up because people in your supply chain have raised their prices in response to the new minimum wage. How can small businesses cover the cost? If we raise the minimum wage often, then we will soon be having $20 fried chicken.”

“We want to pay everybody as well as we can,” Stewart said. “If you raise the wage, then you will have more career-oriented workers who want to stay on the job.

What’s the best way to achieve this? We are trying to figure it out. Something has to be done because the pay disparity in the country is getting ridiculous. What we would like to do is to raise our prices and do away with tips.”

Shelby Sloan, manager of Universal Beauty Supply and Salon – Oakland, California
The minimum wage is impacting a lot of people. It’s good that people are making more money, with the rent and everything else going up. But as you raise the minimum wage, everybody raises their prices, too. Chili at Wendy’s used to cost 99c. Now it’s $1.49. You need still need to make more money because the cost of living is going up.

Melissa Sue Otto, owner of Pawsitively Perfect Pooches – Santa Monica, California
We employ up to six people at any given time and increasing the minimum wage would ruin us. We provide a service – dog walking – and are already at the max of what clients will pay. There is no room for an increase.





Aussie, every action has a reaction. Unless your name is Obama and you're dealing (Not) with ISIS.

I would like to know if you ever owned a small business. If you did you'd know that the largest legal protection service in the country (Called the IRS) taxes the bleep out of small businesses, not to mention, city, and state taxes, SS, unemployment, insurance, workers comp, various insurances etc, so after it's all said and done you're lucky to keep any kind of profit. But hey, I'm an uneducated 18 years old who dropped out of high school, work at McDonald and I want to make $15.00 an hour.

Who do you think is going to pay for it? The owner? I don't think so. You and I will pay for it, and if you don't believe it just wait and see.



https://www.theguardian.com/business/2015/apr/15/what-a-15-minimum-wage-means-for-us-small-businesses
_________________
It's winnin' time!
Back to top
View user's profile Send private message Reply with quote
Aussiesuede
Franchise Player
Franchise Player


Joined: 27 Jul 2005
Posts: 10964

PostPosted: Tue Jul 26, 2016 4:28 pm    Post subject:

No. 17 wrote:


Aussie, every action has a reaction. Unless your name is Obama and you're dealing (Not) with ISIS.

I would like to know if you ever owned a small business. If you did you'd know that the largest legal protection service in the country (Called the IRS) taxes the bleep out of small businesses, not to mention, city, and state taxes, SS, unemployment, insurance, workers comp, various insurances etc, so after it's all said and done you're lucky to keep any kind of profit. But hey, I'm an uneducated 18 years old who dropped out of high school, work at McDonald and I want to make $15.00 an hour.

Who do you think is going to pay for it? The owner? I don't think so. You and I will pay for it, and if you don't believe it just wait and see.

https://www.theguardian.com/business/2015/apr/15/what-a-15-minimum-wage-means-for-us-small-businesses


Of course you and I will be the ones paying for it. That's the way of the world. Fact of the matter is we all should have been paying for it for the last 40 years. Instead we all just enjoyed a free ride with marginal increases in prices instead of more normalised price increases that should have accompanied more normalised salary increases. Business in this country has grown exponentially over that time, and Business owners, investors, and consumers have enjoyed that largesse at the expense of workers. It's long past due to pay the piper. No free ride lasts forever. We chose not to handle workers wage increases in a more responsible manner and now those chickens have predictably come home to roost. A more responsible business practice would have been to keep the equation in balance and increase workers wages, investor dividends, and management salaries on a more equalised and graduated basis. But we chose to ignorantly provide management and investors with an oversized share at the expense of workers, and now we're at the point we are today. That model was never sustainable, but greed ruled the day.

There is no business that DESERVES to be in business. A business survives because of the needs of the marketplace, the acumen of the proprietor, and the desires of the consumer. When any of those dissipates, a business is no longer is viable. That's the natural cycle of business. Some business types simply won't be viable in the new world economy. This has always been the case. But as long as there is a demand in the market, viable businesses will fill the void in the marketplace - it just won't be the type of businesses currently filling the void as some of them simply aren't viable in what is the emerging reality. Again, that's always been the case.

What we've seen most here in Seattle is that small businesses have had to expand to survive. They can no longer count on a single outlet to bring in the desired revenue. They must use economies of scale to continue being viable. Those with 21st century business acumen have made the adjustment. Others have exited the marketplace, again - as has always been the case. A good example is Ezells Chicken. They use to just have an single restuarant over in the Central district. If you wanted some, you had to make the trek way over to that part of town. Now they've opened outlets in all parts of the region. Now it's much easier to enjoy their food. I use to have a meal there about once a year or so. Now I pick up something once every 6 weeks or so, because they've adjusted to the needs of the current marketplace and made it more convenient. The upside for Ezells is higher profitability due to their smart business decision to expand (and add catering services to their offering). And these are the type of things good business's do. They don't just look at a changing marketplace reality and sit back and whine until their doors close. They instead adjust and adapt to the changing realities of the marketplace. Those business that don't adjust, perish from the marketplace (Again, as has always been the case for both small and large business's alike).

Realising how dumb it was to let workers wages get so out of whack, Seattle's increase to $15 doesn't stop there. So there won't have to be such an aggressive shock to the system in the future, wages will then increase as does inflation. And the prices of everything will continue to marginally increase as it should have been doing over the past 40 years. We pay 6 cents more for our Big Macs now. $3 more for a pair of Nikes. Rest tabs have gone up about 50 cents/meal. We pay an extra $3 per $100 at the market compared to our neighboring communities with lower minimum wages. And nobody is complaining about it. It's completely worth it if a person working 40 hours/week can do something as simple as pay rent. But even at the highest wage rate, those low end business's are still having trouble finding workers, as we've a shortage of low end workers in this town. So the reality is that pretty much everyone is already being paid above the minimum wage anyway, and business is still booming. But this is a region that can support these wage increases. Places like Alabama, Iowa, or Tennessee could not absorb the hit. That's why I'm against a national move to $15/hr. Wages are market driven and each market has a different sustainability. From a business standpoint, Seattle and San Francisco are more mature business markets than Los Angeles. So the increase in Los Angeles will very likely have a more abrupt immediate effect. A lot of "Mom & Pops' will shutter. But the businesses that replace them will be more viable in the realities of the new marketplace. Ultimately that's good for that city over the long haul. Of course the business owners who can't adapt to the new reality won't be happy. Such is life...
_________________
I'm On point, On task, On message, and Off drugs. A Streetwise Smart Bomb, Out of rehab and In denial. Over the Top, On the edge, Under the Radar, and In Control. Behind the 8 ball, Ahead of the Curve and I've got a Love Child who sends me Hate mail.
Back to top
View user's profile Send private message Reply with quote
lakeshow03
Star Player
Star Player


Joined: 19 Jul 2005
Posts: 3076

PostPosted: Tue Jul 26, 2016 5:24 pm    Post subject:

Aussiesuede wrote:
No. 17 wrote:


Aussie, every action has a reaction. Unless your name is Obama and you're dealing (Not) with ISIS.

I would like to know if you ever owned a small business. If you did you'd know that the largest legal protection service in the country (Called the IRS) taxes the bleep out of small businesses, not to mention, city, and state taxes, SS, unemployment, insurance, workers comp, various insurances etc, so after it's all said and done you're lucky to keep any kind of profit. But hey, I'm an uneducated 18 years old who dropped out of high school, work at McDonald and I want to make $15.00 an hour.

Who do you think is going to pay for it? The owner? I don't think so. You and I will pay for it, and if you don't believe it just wait and see.

https://www.theguardian.com/business/2015/apr/15/what-a-15-minimum-wage-means-for-us-small-businesses


Of course you and I will be the ones paying for it. That's the way of the world. Fact of the matter is we all should have been paying for it for the last 40 years. Instead we all just enjoyed a free ride with marginal increases in prices instead of more normalised price increases that should have accompanied more normalised salary increases. Business in this country has grown exponentially over that time, and Business owners, investors, and consumers have enjoyed that largesse at the expense of workers. It's long past due to pay the piper. No free ride lasts forever. We chose not to handle workers wage increases in a more responsible manner and now those chickens have predictably come home to roost. A more responsible business practice would have been to keep the equation in balance and increase workers wages, investor dividends, and management salaries on a more equalised and graduated basis. But we chose to ignorantly provide management and investors with an oversized share at the expense of workers, and now we're at the point we are today. That model was never sustainable, but greed ruled the day.

There is no business that DESERVES to be in business. A business survives because of the needs of the marketplace, the acumen of the proprietor, and the desires of the consumer. When any of those dissipates, a business is no longer is viable. That's the natural cycle of business. Some business types simply won't be viable in the new world economy. This has always been the case. But as long as there is a demand in the market, viable businesses will fill the void in the marketplace - it just won't be the type of businesses currently filling the void as some of them simply aren't viable in what is the emerging reality. Again, that's always been the case.

What we've seen most here in Seattle is that small businesses have had to expand to survive. They can no longer count on a single outlet to bring in the desired revenue. They must use economies of scale to continue being viable. Those with 21st century business acumen have made the adjustment. Others have exited the marketplace, again - as has always been the case. A good example is Ezells Chicken. They use to just have an single restuarant over in the Central district. If you wanted some, you had to make the trek way over to that part of town. Now they've opened outlets in all parts of the region. Now it's much easier to enjoy their food. I use to have a meal there about once a year or so. Now I pick up something once every 6 weeks or so, because they've adjusted to the needs of the current marketplace and made it more convenient. The upside for Ezells is higher profitability due to their smart business decision to expand (and add catering services to their offering). And these are the type of things good business's do. They don't just look at a changing marketplace reality and sit back and whine until their doors close. They instead adjust and adapt to the changing realities of the marketplace. Those business that don't adjust, perish from the marketplace (Again, as has always been the case for both small and large business's alike).

Realising how dumb it was to let workers wages get so out of whack, Seattle's increase to $15 doesn't stop there. So there won't have to be such an aggressive shock to the system in the future, wages will then increase as does inflation. And the prices of everything will continue to marginally increase as it should have been doing over the past 40 years. We pay 6 cents more for our Big Macs now. $3 more for a pair of Nikes. Rest tabs have gone up about 50 cents/meal. We pay an extra $3 per $100 at the market compared to our neighboring communities with lower minimum wages. And nobody is complaining about it. It's completely worth it if a person working 40 hours/week can do something as simple as pay rent. But even at the highest wage rate, those low end business's are still having trouble finding workers, as we've a shortage of low end workers in this town. So the reality is that pretty much everyone is already being paid above the minimum wage anyway, and business is still booming. But this is a region that can support these wage increases. Places like Alabama, Iowa, or Tennessee could not absorb the hit. That's why I'm against a national move to $15/hr. Wages are market driven and each market has a different sustainability. From a business standpoint, Seattle and San Francisco are more mature business markets than Los Angeles. So the increase in Los Angeles will very likely have a more abrupt immediate effect. A lot of "Mom & Pops' will shutter. But the businesses that replace them will be more viable in the realities of the new marketplace. Ultimately that's good for that city over the long haul. Of course the business owners who can't adapt to the new reality won't be happy. Such is life...


But but they're just lazy workers who don't deserve it! Never mind the fact that's their 3rd job and still can barely afford rent. If your business can only survive by paying unlivable wages, sounds like there's an expiration date on your business anyways.
Back to top
View user's profile Send private message Reply with quote
Display posts from previous:   
Post new topic    LakersGround.net Forum Index -> Off Topic All times are GMT - 8 Hours
Goto page Previous  1, 2, 3, 4, 5, 6, 7  Next
Page 5 of 7
Jump to:  

 
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum






Graphics by uberzev
© 1995-2018 LakersGround.net. All Rights Reserved. Privacy Policy. Terms of Use.
LakersGround is an unofficial news source serving the fan community since 1995.
We are in no way associated with the Los Angeles Lakers or the National Basketball Association.


Powered by phpBB