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Yeah, nothing is simple. My guess is that the stores were borderline in terms of viability and the $4/hr hike put them over the edge. Still, it sucks that peo
by robomartin 6y ago
Yeah, nothing is simple. My guess is that the stores were borderline in terms of viability and the $4/hr hike put them over the edge.
Still, it sucks that people lost their jobs this way. We need a system where politicians suffer real consequences for their actions. Not sure what this would look like, but it sounds good.
What we don't know is if the $4/hr hike caused employers to have to reduce worker hours, shift people to part-time basis, etc. Maybe that information will come out at some point.
Imagine a situation where you have 50 people making $12 per hour and you face an instant increase in labor costs to $16 per hour, or 33%.
That means the store has to INSTANTLY generate at least 33% more in profits (not sales, profits) in order to cover that increase. I don't know any business that can simply will a 33% increase in performance. This is where political thinking quickly becomes delusional. And, no, they are not sitting on fat margins that would allow absorbing such a thing.