[mlassoff]

I think overall it's probably good for the economy-- With so many people making minimum wage giving them a bit more to spend will go right back in to the local economy. Giving the boss another million doesn't generally impact the local economy as dramatically-- The boss won't buy more milk, or do more dry cleaning. Low income folks, however, spend all their money and it goes in to the community cashflow instead of a NYC investment bank.

I don't know how many of you besides me actually own a business-- but unless you're working in fast food or retail, you probably don't have many (if any) minimum wage employees. I don't have any...

I can't imagine what it's like trying to live in $10.10 an hour. I imagine there are a lot of things-- Dental visits, meals out, Starbucks, insurance, investment, etc-- that are not part of the equation for someone making this low wage. I'm sure it's even more dramatically bad at $8.75. I don't begrudge these people a small increase in their wage.

It's long overdue. It's not going to solve any big problems, but, the gap between rich and poor keeps getting bigger and it's not at all good for the country.

[Mike 75]

If raising the minimum wage is so good for the economy, why stop at $10.10? Why not $20 or $50 per hour? If it has no effect on employment, this should be a no brainer, right? But that's not the case, as the Congressional Budget Office report shows. http://www.cbo.gov/sites/default/fil...inimumWage.pdf
It will have an effect on employment, and there will be less low paying jobs as a result.

[CLees]

Originally Posted by RogerAnthony

Lazy owner who sits around, really? At many small businesses the owner would be that line cook racing around and they would be making much less than $9 per hour because all the money they make has to go pay their employees wages. My town has many small businesses (mostly food establishments) and I know quite a few business owners who take no salary for themselves most months because all the profits have to go to pay their two or three employees. This will turn these businesses from a break-even situation to a loss.

I went too far with that.. I was reminiscing on my days as a line cook in FL.. Many restaurant owners are lazy down there and they wonder why their businesses are failing.

[rubygreta]

Originally Posted by nep321

Had the minimum wage kept up with inflation, it would be $22.75 today. Think about that. Achieving $10.10 three years from now is modest and doable.

No point in reading the entire post when you spew flat-out lies like this. The $10.10 wage reflects the minimum wage when it was at its absolute highest adjusted for inflation, which was in 1968.

Stop making stuff up. You lose all credibility. $22.75/hour, are you kidding? THAT'S $45,000 A YEAR TO FLIP HAMBURGERS!

Here's the chart. See that point on the far left? That's $10.10. That is the highest minimum wage, adjusted for inflation, since the minimum wage was started by FDR in the 1930's.

[rubygreta]

Originally Posted by nep321

Why are you saying that those jobs won't exist at $10.10 per hour? I already told you that minimum wage increases have no impact on the unemployment rate, as evidenced by numerous studies out there. Stop making up conclusions based on fear-inspired theories.

Then let's make it $20/hour. High school grads can make $40,000/year without going to college, and we will all live happily ever after.

Watch for the next McDonalds or Burger King or pick your favorite fast-food restaurant that is built from the ground up in Connecticut. You like ordering from human beings? In the future, you will be pressing buttons on a computer to order. And that entry level job the high school kid could once get is gone forever.

[sskink]

Basically, here's what's going to happen. I used to own/operate a coffeehouse (not in CT).

Let's say my gross sales are $25K/month ($300K/year, which is typical for a decent independent).

My ratios are as follows:
COG = 35%
Labor/ERE = 30%
Prime (COG + labor) = 65%
Rent = 10%
Other (insurance/fees/utilities/non-labor taxes, etc.) = 10%
Gross Profit = 15%

If I'm paying minimum wage, my labor costs just went up from $8.25 to $10.10, and FICA payments went up with it. So that's an increase from $8.76 to $10.73, or $1.97 (22.5%).

My labor costs just went from $7500 to $9188 per month.

Coffeehouses and restaurants must work off the Prime. That's the variable costs and control of that number is what determines profit. Thus, if I want to keep the same profit, I have to keep prime at 65%.

There are only two ways to do that:
1) cut quality of product/use less expensive ingredients. This will have the net result of harming the brand, reducing value of the business.
2) raise prices until Prime is back at 65%

So my new Prime, incorporating the new minimum wage + FICA has gone from $16,250 to $17,938, an increase of $1,688. Thus, I need $1,688/0.65 in revenue derived solely from price increases to offset this increase, or $2,596.

Let's say my average sale was $5.00 and I made 5,000 sales per month. That average sale must now generate $5.52.

Thus, that's slightly more than a 10% increase in prices across the board.

There's no way around that if, as an owner, I want to maintain my profit margin (which isn't luxury living by any means).

So let's say you're one of those folks who goes for a coffee and bagel or muffin every work day. 22 work days per month means you're going to pay an additional $11 per month.

And that's just from your neighborhood coffee house. If you eat out fairly regularly, that's going to multiply by the frequency at which you dine out.

Are you willing to accept that?

If not, a lot of small businesses will be going under.

[FutureTown]

Originally Posted by rubygreta

Then let's make it $20/hour. High school grads can make $40,000/year without going to college, and we will all live happily ever after.

Watch for the next McDonalds or Burger King or pick your favorite fast-food restaurant that is built from the ground up in Connecticut. You like ordering from human beings? In the future, you will be pressing buttons on a computer to order. And that entry level job the high school kid could once get is gone forever.

^Yes, but that won't necessarily be cause of minimum wage, but advances in technology and companies are (obviously) going to sabotage that opportunity. Who wouldn't to save money in the long run? We've already seen that happen enough in the manufacturing sector of the industry. That, or outsourcing.

[rubygreta]

Originally Posted by mlassoff

I think overall it's probably good for the economy-- With so many people making minimum wage giving them a bit more to spend will go right back in to the local economy. Giving the boss another million doesn't generally impact the local economy as dramatically-- The boss won't buy more milk, or do more dry cleaning. Low income folks, however, spend all their money and it goes in to the community cashflow instead of a NYC investment bank.

I don't know how many of you besides me actually own a business-- but unless you're working in fast food or retail, you probably don't have many (if any) minimum wage employees. I don't have any...

I can't imagine what it's like trying to live in $10.10 an hour. I imagine there are a lot of things-- Dental visits, meals out, Starbucks, insurance, investment, etc-- that are not part of the equation for someone making this low wage. I'm sure it's even more dramatically bad at $8.75. I don't begrudge these people a small increase in their wage.

It's long overdue. It's not going to solve any big problems, but, the gap between rich and poor keeps getting bigger and it's not at all good for the country.

Most minimum wage jobs are part-time jobs and jobs for kids living with their parents. Hopefully, as you get older, you gain experience and get better jobs.

A married couple (yes, people still get married before having children), making $10/hour x 80 hours total is $40,000/year. And in most parts of the country, you can save money on that salary by renting a 1-bedroom apartment for $600, and eventually buy a modest house. Far from living in poverty. Just don't live in lower FFC.

[rubygreta]

Originally Posted by sskink

Basically, here's what's going to happen. I used to own/operate a coffeehouse (not in CT).

Let's say my gross sales are $25K/month ($300K/year, which is typical for a decent independent).

My ratios are as follows:
COG = 35%
Labor/ERE = 30%
Prime (COG + labor) = 65%
Rent = 10%
Other (insurance/fees/utilities/non-labor taxes, etc.) = 10%
Gross Profit = 15%

If I'm paying minimum wage, my labor costs just went up from $8.25 to $10.10, and FICA payments went up with it. So that's an increase from $8.76 to $10.73, or $1.97 (22.5%).

My labor costs just went from $7500 to $9188 per month.

Coffeehouses and restaurants must work off the Prime. That's the variable costs and control of that number is what determines profit. Thus, if I want to keep the same profit, I have to keep prime at 65%.

There are only two ways to do that:
1) cut quality of product/use less expensive ingredients. This will have the net result of harming the brand, reducing value of the business.
2) raise prices until Prime is back at 65%

So my new Prime, incorporating the new minimum wage + FICA has gone from $16,250 to $17,938, an increase of $1,688. Thus, I need $1,688/0.65 in revenue derived solely from price increases to offset this increase, or $2,596.

Let's say my average sale was $5.00 and I made 5,000 sales per month. That average sale must now generate $5.52.

Thus, that's slightly more than a 10% increase in prices across the board.

There's no way around that if, as an owner, I want to maintain my profit margin (which isn't luxury living by any means).

So let's say you're one of those folks who goes for a coffee and bagel or muffin every work day. 22 work days per month means you're going to pay an additional $11 per month.

And that's just from your neighborhood coffee house. If you eat out fairly regularly, that's going to multiply by the frequency at which you dine out.

Are you willing to accept that?

If not, a lot of small businesses will be going under.

Wait a minute. According to the prior poster, you are not a person, you are a business. Businesses are greedy. You should really not be making much of a profit at all. Most of your gross income should go to your workers. Doesn't matter if you busted your butt creating this business and work 60 hours a week.

Every Marxist/Leftist professor and politician in Connecticut should read this. But I'm not sure if they could understand the basic arithmetic.

[mrgmrg]

Aren't the majority of people earning minimum wage teenagers, part-time workers, college students on summer jobs, and the like--not people supporting a family or themselves? Given that, I don't get why this would have some drastic impact on quality of life for adults and families. I'd be much more in favor of some kind of law that requires benefits, 401(k) contributions, etc. for permanent employees starting at a much lower hours-worked limit so that companies like Wal-Mart can't avoid their obligations to their employees by keeping them below 30 hours per week.

There are certainly worse things than increasing the minimum wage, but there are better policy changes to be made, too.