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Higher minimum wage levels will only make everything else more expensive. Everyone being paid more at the bottom level isn't going to help them get better housing. The housing market is an open and very competitive one. Having a $15 minimum wage increase doesn't give the poor more buying power. It doesn't offset their terrible life choices, like not having good academic skills and having too many children and too early in life.
Actually, the California legislature already took that into account. The minimum wage will gradually increase to $15 and hour and then it'll be linked to the cost of living -- so when rent and groceries cost more, minimum wage increases accordingly.
As to life choices, there are currently vastly more college graduates in the USA than there ever have been, and it's getting more and more expensive to get your degree. I'm wholeheartedly against the idea of restricting a living wage only to college grads.
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I think that there will be job cuts and more demanded of the remaining workers. And those workers, in order to keep their jobs, will have to become better and more productive at their jobs.
Herein lies the real unknown for raising minimum wage. Will it drastically reduce the number of jobs available? There's a lot to consider. Wealthier people are smarter about saving money. Poorer people generally are not. Give somebody $15 and hour for flipping burgers and they'll probably spend every dime of it. This puts more money into the economy -- much like the Bush Tax Cuts did. Higher flow of money in an economy tends lead to good economic outcomes. Will that offset the inevitable desire by employers to layoff workers? I've got no idea. Point is, there are economists on both sides of the issue. Until we have somebody test it, it's all just theory and guesswork.
I'm all for waiting and seeing what happens in Cali. If California ruins itself, then the rest of the country will know it's a bad idea.
Most of posters here have no idea about running a business
A lot of people don't consider the additional taxes the employer will pay, along with putting most of these people in a different paying bracket.
This is what is happening in Seattle: http://www.bizjournals.com/seattle/b...5-minimum.html
“In the long run, happy hour and all those things are to come into question,” he said. “But for us this year, the customer will not see anything.”
Mackay Restaurants, which own the El Gaucho chain, will also likely add a service charge to customers’ bills, rather than raise the prices of each dish.
That means customers would no longer tip servers, but would instead pay a charge that is automatically added to every bill. Restaurant owners say it would reduce the discrepancy between front of the house (server and bartender) salaries and back of the house (cook and dishwasher) salaries.
This seems to be a popular tactic among Seattle restaurant owners.
Sacramento restaurants solved the problem of increased labor costs inflicted on them from California’s rising minimum wage by taking a portion of the waiters tips.
Expect this trend to continue throughout California as the minimum wage gradually increases statewide. In Los Angeles minimum wage ascends to $15 an hour in January 2020.
Already in San Francisco and Seattle many restaurants are going tip free. Instead an additional surcharge is being added to the bill from which restaurants take a portion and pay a portion to the food server.
I knew waitress who would clear $300-$400 a night working at Denny's Restaurant........ I don't see this wage hike bringing in this kind of $$$$ for the waiter or waitress. I couldn't imagine training someone at this cost.
This is just going to hurt small businesses, especially those just getting off the ground.
But California seems to enjoy making it as difficult as possible to open and run a small business, who could otherwise be the real job creators in this country.
To be fair, anything that costs money isn't beneficial to a business. Any business would like their employees to work for free and their product cost nothing.
At least you are making 'no bones about your stripes' (so to speak) with your reply to my post. However, the question I posed remains unanswered.
This is just going to hurt small businesses, especially those just getting off the ground.
But California seems to enjoy making it as difficult as possible to open and run a small business, who could otherwise be the real job creators in this country.
Why do business owners feel entitled to have employees? If you can not afford to pay an employee a decent wage then you do not need to have an employee? Whatever happened to only hiring employees when you can afford them? Hiring employees so you can pay slave wages for your own greed is never okay.
This is what is happening in Seattle: http://www.bizjournals.com/seattle/b...5-minimum.html “In the long run, happy hour and all those things are to come into question,” he said. “But for us this year, the customer will not see anything.”
Sacramento restaurants solved the problem of increased labor costs inflicted on them from California’s rising minimum wage by taking a portion of the waiters tips.
nope that's not happening:
California Labor Code § 351
No employer or agent shall collect, take, or receive any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deduct any amount from wages due an employee on account of a gratuity, or require an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer. Every gratuity is hereby declared to be the sole property of the employee or employees to whom it was paid, given, or left for.
Why do business owners feel entitled to have employees? If you can not afford to pay an employee a decent wage then you do not need to have an employee? Whatever happened to only hiring employees when you can afford them? Hiring employees so you can pay slave wages for your own greed is never okay.
Your state (South Carolina) has it right. You sound like someone trying to digest sour grapes in a state where the minimum wage is the same as the federal minimum wage. You'd fit right in in California. Why not pack your bags?
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