5 ms·

Evidently Seattle businesses are very productive and able to readily achieve profits over and above the $600+ a week (8h/d) cost of employing someone ( "+" mean

by vixin 12y ago

Evidently Seattle businesses are very productive and able to readily achieve profits over and above the $600+ a week (8h/d) cost of employing someone ( "+" means that I don't know what the overhead costs are). Rather tough on those whose energy and skills do not warrant employing them at that rate. The alternative for borderline businesses is to find ways of not employing anyone at all.

whimsy 12y ago
Ohoho, you think all minimum wage positions are full-time? This is simply false.
zo1 12y ago
> "Rather tough on those whose energy and skills do not warrant employing them at that rate. The alternative for borderline businesses is to find ways of not employing anyone at all." That's the dirty little secret that no one wants to talk about when it comes to the minimum wage. Especially in discussions where everyone is compelled to make feel-good arguments in support of stuff, without thinking of the long-term consequences. Sure, we'd all like it if all people could live comfortably, and it is a noble goal. But the minimum wage is not the way to do it.
- whimsy 12y ago
  It would be an interesting and compelling secret if there was evidence for this occurring. Research indicates that it's simply untrue. "A larger body of economic research investigates the effects of state and federal minimum wage increases. These studies compare employment trends for states or counties that have different minimum wages. The best studies make comparisons to nearby states or counties to control for regional economic trends. These studies also find no statistically significant negative effects on employment or hours at an aggregate level or for low-wage industries such as restaurants and retail stores, or for specific groups of workers such as teens. These studies also do not find substitution effects (such as shifts in hiring away from black and Latino teens)." ... "In a prospective study of the San Francisco minimum wage, Reich and Laitinen (2003) carried out a representative survey of establishments. They estimated that a 25.9 percent increase in the minimum wage from $6.75 to $8.50 would result in a 1.1 percent increase in the overall wage bill. When viewed from the perspective of operating costs, a 26 percent increase would result in 82.0 percent of establishments experiencing an increase in operating costs of less than 1 percent or more, and 95.2 percent experiencing an increase in operating costs of less than 5 percent. Breaking down results by industry, they estimated that 17.9 percent of restaurants would experience an increase in operating costs of 5 percent or more, as would 8.6 percent of retail establishments. For manufacturing, entertainment, hotel, and personal service firms, the estimated increase in operating costs was close to zero. Pollin (2004) similarly estimated that the average increase in firms’ costs relative to sales under Santa Fe’s 2003 minimum wage ordinance would be 1 percent; the average cost increase for hotels relative to sales would be 3 percent. Benner and Jayaraman (2012) analyzed the impact of a proposed increase in the federal minimum wage from $7.25 to $10.10 (a 39 percent increase, not accounting for inflation during the phase-in) on the food industry. They estimated a maximum increase in operating costs for the food service and drinking establishment industry of 2.25 percent over three years, and 1 percent in the retail food industry. " from "University of California, Berkeley study: Who Would be Affected by an Increase in Seattle’s Minimum Wage?"[1], one of the pieces of research commissioned during the development of the Seattle ordinance. "This research was based on nine localities in the United States currently have enacted minimum wage laws: Albuquerque, NM; Bernalillo County, NM; Montgomery County, MD; Prince George's County, MD; San Francisco, CA; San Jose, CA; Santa Fe, NM; Santa Fe County, NM; and Washington DC." http://murray.seattle.gov/minimumwage/#sthash.u0fx1kth.dpuf http://murray.seattle.gov/minimumwage/#sthash.u0fx1kth.dpuf

by vixin 12y ago

whimsy 12y ago

Ohoho, you think all minimum wage positions are full-time? This is simply false.

zo1 12y ago

> "Rather tough on those whose energy and skills do not warrant employing them at that rate. The alternative for borderline businesses is to find ways of not employing anyone at all." That's the dirty little secret that no one wants to talk about when it comes to the minimum wage. Especially in discussions where everyone is compelled to make feel-good arguments in support of stuff, without thinking of the long-term consequences. Sure, we'd all like it if all people could live comfortably, and it is a noble goal. But the minimum wage is not the way to do it.

whimsy 12y ago
It would be an interesting and compelling secret if there was evidence for this occurring. Research indicates that it's simply untrue. "A larger body of economic research investigates the effects of state and federal minimum wage increases. These studies compare employment trends for states or counties that have different minimum wages. The best studies make comparisons to nearby states or counties to control for regional economic trends. These studies also find no statistically significant negative effects on employment or hours at an aggregate level or for low-wage industries such as restaurants and retail stores, or for specific groups of workers such as teens. These studies also do not find substitution effects (such as shifts in hiring away from black and Latino teens)." ... "In a prospective study of the San Francisco minimum wage, Reich and Laitinen (2003) carried out a representative survey of establishments. They estimated that a 25.9 percent increase in the minimum wage from $6.75 to $8.50 would result in a 1.1 percent increase in the overall wage bill. When viewed from the perspective of operating costs, a 26 percent increase would result in 82.0 percent of establishments experiencing an increase in operating costs of less than 1 percent or more, and 95.2 percent experiencing an increase in operating costs of less than 5 percent. Breaking down results by industry, they estimated that 17.9 percent of restaurants would experience an increase in operating costs of 5 percent or more, as would 8.6 percent of retail establishments. For manufacturing, entertainment, hotel, and personal service firms, the estimated increase in operating costs was close to zero. Pollin (2004) similarly estimated that the average increase in firms’ costs relative to sales under Santa Fe’s 2003 minimum wage ordinance would be 1 percent; the average cost increase for hotels relative to sales would be 3 percent. Benner and Jayaraman (2012) analyzed the impact of a proposed increase in the federal minimum wage from $7.25 to $10.10 (a 39 percent increase, not accounting for inflation during the phase-in) on the food industry. They estimated a maximum increase in operating costs for the food service and drinking establishment industry of 2.25 percent over three years, and 1 percent in the retail food industry. " from "University of California, Berkeley study: Who Would be Affected by an Increase in Seattle’s Minimum Wage?"[1], one of the pieces of research commissioned during the development of the Seattle ordinance. "This research was based on nine localities in the United States currently have enacted minimum wage laws: Albuquerque, NM; Bernalillo County, NM; Montgomery County, MD; Prince George's County, MD; San Francisco, CA; San Jose, CA; Santa Fe, NM; Santa Fe County, NM; and Washington DC." http://murray.seattle.gov/minimumwage/#sthash.u0fx1kth.dpuf http://murray.seattle.gov/minimumwage/#sthash.u0fx1kth.dpuf