$15.00/hour Min Wage? This is what will happen... (rent, to buy)
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I'm an Economist and I would LOVE it if even the lowest down the totem pole would make $15 an hour as we all sang Kumbaya together. In reality, though, this is not possible. Well, it is always possible for government to set such a wage floor, but that does not mean that what they intend to happen, will indeed happen.
This is what I predict will take place if a $15 an hour minimum wage is indeed passed in NYC.
1. Fast food joints will push for automation. It doesn't take a rocket scientist to take an order. As has happened in Seattle (a city which recently passed a min wage of $15 an hour), booths at which patrons can place orders will be put up. Paying someone $8.50 an hour may be worth it to take orders, but at a certain point, it will be cheaper to buy and maintain "order booths". Thus, jobs will be lost.
2. Fast food joints will go back to hiring college students and even recent grads (and the uneducated will complain about it). Why pay street trash with no education $15 an hour when college students would be happy to do the work for such a wage. This will drive the poor and uneducated OUT of the few jobs they qualify for.
3. Less jobs. Less jobs will be available as fewer individuals and chains will be willing to open businesses in the city.
4. Inflation. With higher incomes comes higher prices and rents which will eventually negate the increased minimum wage.
5. The lucky few will be better off. As with rent controls, the lucky few will be better off with a better wage, not that they necessarily deserve it. Those who would have moved on to bigger and better things, may not, as they are paid an unnaturally high wage. This may even stunt their growth. I like to call this the "golden handcuffs effect".
I'm an Economist and I would LOVE it if even the lowest down the totem pole would make $15 an hour as we all sang Kumbaya together. In reality, though, this is not possible. Well, it is always possible for government to set such a wage floor, but that does not mean that what they intend to happen, will indeed happen.
This is what I predict will take place if a $15 an hour minimum wage is indeed passed in NYC.
1. Fast food joints will push for automation. It doesn't take a rocket scientist to take an order. As has happened in Seattle (a city which recently passed a min wage of $15 an hour), booths at which patrons can place orders will be put up. Paying someone $8.50 an hour may be worth it to take orders, but at a certain point, it will be cheaper to buy and maintain "order booths". Thus, jobs will be lost.
2. Fast food joints will go back to hiring college students and even recent grads (and the uneducated will complain about it). Why pay street trash with no education $15 an hour when college students would be happy to do the work for such a wage. This will drive the poor and uneducated OUT of the few jobs they qualify for.
3. Less jobs. Less jobs will be available as fewer individuals and chains will be willing to open businesses in the city.
4. Inflation. With higher incomes comes higher prices and rents which will eventually negate the increased minimum wage.
5. The lucky few will be better off. As with rent controls, the lucky few will be better off with a better wage, not that they necessarily deserve it. Those who would have moved on to bigger and better things, may not, as they are paid an unnaturally high wage. This may even stunt their growth. I like to call this the "golden handcuffs effect".
I don't think I agree with the minimum wage being raised to $15 but your post comes off as condescending. Referring to people as "street trash"? Also, fast food can be a very difficult job, thankfully I don't work in it anymore but it was a lot of work/stress for minimum wage.
Mandating a "Living Wage" for all jobs is a complete fallacy. Not all jobs should be living wage, some jobs are just meant for high school kids or no-education simpletons. If you can't make it on one no-skill job then the solution since the beginning of time is multiple jobs
Mandating a "Living Wage" for all jobs is a complete fallacy. Not all jobs should be living wage, some jobs are just meant for high school kids or no-education simpletons. If you can't make it on one no-skill job then the solution since the beginning of time is multiple jobs
I'm an Economist and I would LOVE it if even the lowest down the totem pole would make $15 an hour as we all sang Kumbaya together. In reality, though, this is not possible. Well, it is always possible for government to set such a wage floor, but that does not mean that what they intend to happen, will indeed happen.
This is what I predict will take place if a $15 an hour minimum wage is indeed passed in NYC.
1. Fast food joints will push for automation. It doesn't take a rocket scientist to take an order. As has happened in Seattle (a city which recently passed a min wage of $15 an hour), booths at which patrons can place orders will be put up. Paying someone $8.50 an hour may be worth it to take orders, but at a certain point, it will be cheaper to buy and maintain "order booths". Thus, jobs will be lost.
2. Fast food joints will go back to hiring college students and even recent grads (and the uneducated will complain about it). Why pay street trash with no education $15 an hour when college students would be happy to do the work for such a wage. This will drive the poor and uneducated OUT of the few jobs they qualify for.
3. Less jobs. Less jobs will be available as fewer individuals and chains will be willing to open businesses in the city.
4. Inflation. With higher incomes comes higher prices and rents which will eventually negate the increased minimum wage.
5. The lucky few will be better off. As with rent controls, the lucky few will be better off with a better wage, not that they necessarily deserve it. Those who would have moved on to bigger and better things, may not, as they are paid an unnaturally high wage. This may even stunt their growth. I like to call this the "golden handcuffs effect".
What are your thoughts?
At least you have the balls to go online with hard predictions. Let's revisit this space in a year and see how you do.
I just don't get how some people are so angry/focused on low wage workers, and union workers when the 0.1% are bleeding us all dry.
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