Days after minimum wage rises, Maine diner near nh cuts staff hours. (Union: grocer, legal)

[kevin5098]

Originally Posted by mensaguy

I think Moody's is crying wolf. They can afford to pay what the law requires. Moody's is already one of the more expensive places in Maine that calls itself a diner.

Where is the money coming from to cover the yearly increases in employer contributions to the workers' minimum wage? Unless they can cut costs, it seems to me that prices will have to increase or net profits will have to decrease.

[jonesg]

I came to America to get away from socialism, ran businesses here for 35 yrs.
It will take a while before the truth comes out about the consequences of imposing socialist policies on business, It cannot work.
As the economist Milt Freedman stated "socialism requires force". Due to the fact that the natural state for mankind is freedom and people do not like their freedom being impinged. So it always requires that it be imposed, Americans ( as a group) don't like that.

Before anyone says "we already have socialism, social security for example"
I suggest a dictionary, SS is NOT socialism.

[massnative71]

Originally Posted by mensaguy

I think Moody's is crying wolf. They can afford to pay what the law requires. Moody's is already one of the more expensive places in Maine that calls itself a diner.

But is their profit very high? Perhaps they have a high overhead to cover. Also if their food is a notch above typical diner food then yes that will command higher vendor costs and menu prices. Never been there so don't know, when in that neck of the woods never wanted to deal with the crowds.

[mensaguy]

Maine's unemployment rate has dropped again. The report issued by the Department of Labor show the rate dropped from 3.2% in February to 3.0% in March.

MDOL: News & Events

[kevin5098]

Originally Posted by mensaguy

Maine's unemployment rate has dropped again. The report issued by the Department of Labor show the rate dropped from 3.2% in February to 3.0% in March.

MDOL: News & Events

How is this related to the increase in minimum wage? Most of the gains were in industries that pay more than minimum as starting wages.

[G1..]

Originally Posted by kevin5098

Where is the money coming from to cover the yearly increases in employer contributions to the workers' minimum wage? Unless they can cut costs, it seems to me that prices will have to increase or net profits will have to decrease.

Not to sound short but ...yes.Business's in general will have to become more efficient.

[G1..]

Originally Posted by kevin5098

How is this related to the increase in minimum wage? Most of the gains were in industries that pay more than minimum as starting wages.

Well that is certainly a good thing.As you pointed out "most" of the gains but not all.

[LordSquidworth]

Originally Posted by jonesg

I came to America to get away from socialism, ran businesses here for 35 yrs.
It will take a while before the truth comes out about the consequences of imposing socialist policies on business, It cannot work.
As the economist Milt Freedman stated "socialism requires force". Due to the fact that the natural state for mankind is freedom and people do not like their freedom being impinged. So it always requires that it be imposed, Americans ( as a group) don't like that.

Before anyone says "we already have socialism, social security for example"
I suggest a dictionary, SS is NOT socialism.

If businesses close due to whatever increases to the meager minimum wage there is, good. They weren't healthy enough to begin with.

The minimum should be $10-$11/hr no doubt. I start people at $15.

Originally Posted by massnative71

But is their profit very high? Perhaps they have a high overhead to cover. Also if their food is a notch above typical diner food then yes that will command higher vendor costs and menu prices. Never been there so don't know, when in that neck of the woods never wanted to deal with the crowds.

Used to be cheap food for cheap prices.

Now it's cheap food for normal prices. I haven't cared for the place in years.

[jonesg]

Originally Posted by kevin5098

How is this related to the increase in minimum wage? Most of the gains were in industries that pay more than minimum as starting wages.

Raises in minimum wage causes pressure to raise payscales.

Teachers and all unions love it because they get automatic increases when the minimum wage goes up.

[massnative71]

Originally Posted by jonesg

Teachers and all unions love it because they get automatic increases when the minimum wage goes up.

???