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Seattle raises Minimum Wage to $15


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#1    DieChecker

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Posted 03 June 2014 - 05:56 AM

http://www.latimes.c...ory.html#page=1

Quote

The Seattle City Council is poised to raise the municipal minimum wage Monday to $15 an hour, making it the highest in the country. That number grabbed the imagination of this progressive, affluent city and became central to the November elections, which swept the first Socialist into office here in a century.

Not surprisingly, Washington also has the highest state minimum wage in the country at $9.32, although several other states, California included, are considering giving their lowest paid workers a boost. The federal minimum of $7.25 is under heated discussion, although it won’t jump any time soon.

Soon to be followed by "Businesses leave Seattle. Unemployment soars".

It will be an interesting experiment. I feel sorry for those who will inevitably suffer, but I think good data will come out of this.

You know... I'm not certain, but I thought we were in a Recovery still. Might not be the best time to drop mandated 50% pay increases on every business in Seattle.

http://www.latimes.c...ory.html#page=1

Quote

Minimum-wage workers in Connecticut got a 45-cent raise on Jan. 1, the first step in a process that will eventually set their wages at $10.10 an hour.

Quote

But before those efforts, Connecticut provided an early illustration of what many economists have been saying for years: Raising the minimum wage is not the most effective way to reduce poverty.

"If we're trying to lift people out of poverty conditions and improve their well-being — improve their chances of being able to make a living — there are much more efficient, less costly ways of doing that than through this artificial mechanism of raising the minimum wage," said Steven Lanza, an economist at the University of Connecticut.

Expanding the Earned Income Tax Credit, for instance, could go further in helping low-income workers survive, he said.

One unknown is whether employers will start cutting back on hiring.

Employment growth in Connecticut has lagged behind the nation since December, data show. Nationally, employment grew 0.62% from December through April, while employment in Connecticut fell 0.19% over the same time period.

Much of that drop-off was related to the elimination of 10,900 jobs in January, the month employers had to start paying 45 cents more. In the previous three years, Connecticut had added an average of 4,000 jobs over the same time period.

More job cuts wouldn't surprise economists. If companies have to pay more for labor, they'll try to save somewhere else, said Keith Hall, a research fellow at the Mercatus Center at George Mason University.

"Because you're raising the cost of hiring, you can get this unintended consequence where some of the people on the margin have their hours reduced," he said.

When Segui began working at Dunkin' Donuts, she was scheduled for 35 hours a week. A few months ago, she and other workers starting getting fewer hours. She now works from 20 to 27 hours a week.

Employers say they're worried that minimum-wage hikes will inflate their whole pay scale; they fear they'll have to raise all wages so that skilled workers proportionally get more than unskilled workers.

"It's hard for them to absorb additional labor costs," said Jack Mozloom, a spokesman with the National Federation of Independent Business.


Edited by DieChecker, 03 June 2014 - 06:06 AM.

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#2    CrimsonKing

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Posted 03 June 2014 - 06:14 AM

15 $ an hour minimum wage!!!Sorry i just do not think that a first day employee at Mcdonald's,or the person bagging your groceries is worth all that.This will indeed be interesting....

"If it is not advantageous,do not move.If objectives can not be attained,do not employ the army.Unless endangered do not engage in warfare.The ruler cannot mobilize the army out of personal anger.The general can not engage in battle because of personal frustration.When it is advantageous,move;when not advantageous,stop.Anger can revert to happiness,annoyance can revert to joy,but a vanquished state cannot be revived,the dead cannot be brought back to life." Sun-Tzu

#3    DieChecker

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Posted 03 June 2014 - 06:16 AM

View PostCrimsonKing, on 03 June 2014 - 06:14 AM, said:

15 $ an hour minimum wage!!!Sorry i just do not think that a first day employee at Mcdonald's,or the person bagging your groceries is worth all that.This will indeed be interesting....
There simply won't be anyone bagging groceries anymore.

As, my Dad, I think, pointed out to me the other day, this will just invigorate companies to use automation, just as they did with industry (robots). It is like the self checkout counters at the market. Except everywhere will be self checkout. And at a fast food place you'll talk into a device like you do at the drive through, but inside also, and pay with your card, so there will be no need for a cashier.

Edited by DieChecker, 03 June 2014 - 06:19 AM.

Here at Intel we make processors on 12 inch wafers. And, the individual processors on the wafers are called die. And, I am employed to check these die. That is why I am the DieChecker.

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#4    CrimsonKing

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Posted 03 June 2014 - 06:19 AM

View PostDieChecker, on 03 June 2014 - 06:16 AM, said:

There simply won't be anyone bagging groceries anymore.

Agreed,people wont be doing alot of things anymore.

"If it is not advantageous,do not move.If objectives can not be attained,do not employ the army.Unless endangered do not engage in warfare.The ruler cannot mobilize the army out of personal anger.The general can not engage in battle because of personal frustration.When it is advantageous,move;when not advantageous,stop.Anger can revert to happiness,annoyance can revert to joy,but a vanquished state cannot be revived,the dead cannot be brought back to life." Sun-Tzu

#5    and then

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Posted 03 June 2014 - 06:36 AM

These folks on the left cannot seem to understand that they cannot force business people to pay the freight on their ideas of equality.  Nothing is free.  That burger that was being sold for X will now be sold for X PLUS the extra cost of labor.  OR the burger will be sold by a robot.

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#6    QuiteContrary

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Posted 03 June 2014 - 06:52 AM

Yeah! If that spreads, instead of three manned check-out lines in groceries and Supercenters on a busy evening.
There will be one check-out line! With hours of noon to 3:00pm.


#7    Paranormalcy

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Posted 03 June 2014 - 07:53 AM

I think people that criticize this miss the point that minimum wage and wages in general have steadily decreased as cost of living has increased, as employers, starting in the 60's, have found more and more ways to absolve themselves of the responsibilty of paying for work delivered. The minimum wage should have been over $10/hr almost ten years ago, to have allowed workers a living wage. If this were implemented across the board, it would force a number of issues and glaring worker-abuse policies to be addressed and fixed, by all business and tax and federal law, so they don't find themselves in an untenable position of losing money.

The adage is, you have to spend money to make money, but business in general, and corporations in specific, fight that every second of every day, so now instead of losing some money to only make "a boatload" instead of "infinite boatloads" of cash, by addressing and paying fair wages to workers they drive to higher and higher performance for lower and lower wages, they will bleed incalculable sums for their defiance to treat and pay their workers humanely. You know who already makes over $15 an hour? Most anyone above individual site management level, and businesses still have trouble - which means it isn't the general employees that are not doing their wages worth of work, it is the people above them.

Edited by Paranormalcy, 03 June 2014 - 07:54 AM.

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#8    Frank Merton

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Posted 03 June 2014 - 07:57 AM

Kinda funny someone telling us the minimum wage "should have been" when in fact there should have been not at all.  It's an unnatural and ultimately harmful way of trying to change the laws of economics by fiat.


#9    Taun

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Posted 03 June 2014 - 10:33 AM

What this will truely hurt the worst is the small business.. The "Mom and Pop" stores and shops that are barely making it now... The large mega chains
will survive more or less unchanged - a few less employees and slightly higher prices... They can afford to offset the costs that way (whether they will or not
is another matter)...

But the "mom and pop" stores, have a much lower margin of profit, any loss of employees hurts their service capabilities drastically and any price increases just send their customers to the mega chains....


#10    Rafterman

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Posted 03 June 2014 - 10:41 AM

They already had a fairly high minimum wage in Washington.  There was an article a few months back about the impact on jobs and while there was not a decrease in employment for most, where it has had a tremendous impact is in the youth job market.  High school and college students simply cannot find work and neither can post-high school/non-college bound teens find work.  Oh, and there has been an overall increase in prices across the board.

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#11    libstaK

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Posted 03 June 2014 - 11:00 AM

Um .... you guys still have someone who bags your groceries in the U.S. ?  Wow, *sighs nostalgically*

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#12    Eldorado

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Posted 03 June 2014 - 11:42 AM

A dollar a day is plenty enough for anyone!  And don't forget to padlock those fire exits.


#13    freetoroam

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Posted 03 June 2014 - 12:12 PM

Everything will rise to cover the extra`s in wages, local businesses which make products will go under because the retailers will do what they have done here in England, get their stuff from China or India.
So in the end everyone will be paying more for tat, quality goes out of the window in the end. Unemployment will rise because there are not enough jobs and there is always the business man who will import illegals to work for $5 an hour, we have it all in England right now.

Problem here is, they put up the minimum wage, everything went up in price to cover the costs, and kept going up while the minimum wage stayed the same.

What will happen in years to come is this:
Where a company would have paid $20 an hour, they will still paying $15 because it "legal". Thats what has happened here, companies which would have paid £9.50 an hour are now only paying the minimum wage at £6.50 and if you are lucky, they will pay you above the MW at £6.70.

In an ideal World a law would be passed were NO guns were allowed and all those out there destroyed, trouble is the law makers are not going to take a risk of trying to pass that without making sure they are armed first.

#14    and then

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Posted 03 June 2014 - 12:23 PM

View PostEldorado, on 03 June 2014 - 11:42 AM, said:

A dollar a day is plenty enough for anyone!  And don't forget to padlock those fire exits.
lol... yeah it's not a good situation El, but attempting to force corporations into anything just raises prices and reduces overall employment.  It's kind of a pipe dream to expect a company to absorb the loss that will come from such a mandate.  SOMEONE always has to pay.

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#15    aztek

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Posted 03 June 2014 - 12:31 PM

well before you had a 10 an hour job, now you have none.  afaik waiters, and barmen min wage law does not apply.

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