Who could have predicted this could possibly happen? You may have read that several large cities have or will be raising their minimum wage to $15 by 2021 - LA, Seattle, and now the State of New York* as of last month. But now reports are coming out in Seattle and LA where the raises are already in effect, that raising the minimum wage actually is hurting some of those it was meant to help. One such report from Seattle says that some workers who are getting these raises are now asking for their work hours to be reduced because they are losing other benefits like welfare, rent subsidies, food stamps and, yes, even Medicaid/Obamacare health insurance subsidies. So far there are only "a few", but as the wages increase, most likely so will that number increase to more than "a few". Oops...
But then there's this. Last April, Dan Price, CEO of Gravity Payments, a Seattle-based credit card payment processing company with 120 employees, announced to the world that he was cutting his $1million salary and would now be paying everyone in his company $70,000. There was much cheering in the company meeting! Everyone was thrilled! What a guy! Heck, even Bernie Sanders weighed in about how this was the wave of the future!
But fast-forward three months later, and it's not going so well for the well-meaning CEO. First, he lost many long-standing client who feared drastic fee increases and frankly, didn't want to be judged by their own employees. Then, several of his most-valued employees who had been paid more because of their experience and longevity quit because they were no longer felt "valued" as employees anymore. And because of the lost revenue, Mr. Price is having problems making his own personal finances meet his needs and is having to rent out his home to cover the mortgage. That last one may be temporary, but it factors in as an unintended consequence.
Don't get me wrong and brand me some wack-job conservative who hates poor people, but I am a big believer that one increases one's wage and prospects by increasing one's value [translation: increased skill sets]. The turnover in the fast food industry is notoriously high and there is a reason for that. They are generally first jobs for teenagers, so they leave for many reasons. So decreasing the turnover rate in fast food jobs is a red-herring. But here is another issue - nothing that I have read (except for Gravity Payments where the top workers left for unfair wages for newer, less experienced workers) addresses what happens to the wages of fast-food workers who are now paid above the prevailing minimum because of their experience and longevity.
Let's discuss. But there was a Republican presidential candidate debate last night that I just could not bring myself to watch. Sorry, there just wasn't enough vodka available. But if you did and want to report, please feel free to report.
*So far in NY, the wage increase is only directed at "fast-food" establishments with more than 20 franchises. NY state's increases will increase to $15 by 2021; NYC will increase to $15 by 2018.
But then there's this. Last April, Dan Price, CEO of Gravity Payments, a Seattle-based credit card payment processing company with 120 employees, announced to the world that he was cutting his $1million salary and would now be paying everyone in his company $70,000. There was much cheering in the company meeting! Everyone was thrilled! What a guy! Heck, even Bernie Sanders weighed in about how this was the wave of the future!
But fast-forward three months later, and it's not going so well for the well-meaning CEO. First, he lost many long-standing client who feared drastic fee increases and frankly, didn't want to be judged by their own employees. Then, several of his most-valued employees who had been paid more because of their experience and longevity quit because they were no longer felt "valued" as employees anymore. And because of the lost revenue, Mr. Price is having problems making his own personal finances meet his needs and is having to rent out his home to cover the mortgage. That last one may be temporary, but it factors in as an unintended consequence.
Don't get me wrong and brand me some wack-job conservative who hates poor people, but I am a big believer that one increases one's wage and prospects by increasing one's value [translation: increased skill sets]. The turnover in the fast food industry is notoriously high and there is a reason for that. They are generally first jobs for teenagers, so they leave for many reasons. So decreasing the turnover rate in fast food jobs is a red-herring. But here is another issue - nothing that I have read (except for Gravity Payments where the top workers left for unfair wages for newer, less experienced workers) addresses what happens to the wages of fast-food workers who are now paid above the prevailing minimum because of their experience and longevity.
Let's discuss. But there was a Republican presidential candidate debate last night that I just could not bring myself to watch. Sorry, there just wasn't enough vodka available. But if you did and want to report, please feel free to report.
*So far in NY, the wage increase is only directed at "fast-food" establishments with more than 20 franchises. NY state's increases will increase to $15 by 2021; NYC will increase to $15 by 2018.
26 comments:
Bev, I couldn't bring myself to watch it either.
As for the minimum wage, I am SHOCKED... SHOCKED that we can't just legislate away all our problems. I really can't believe it. How can this be?
If 15 bucks an hr. for entry-level, low-skilled jobs is so good for the economy, as leftists always say, why wait until 2021 to fully implement it? And why stop at 15? Wouldn't 30 be twice as good? :)
Who knew that welfare would interfere in obtaining a "living" wage?
Nothing says 'barely making ends meet' like asking for a cut in hours.
As usual the Bolsheviks don't understand Economics 101, but they probably have liberal art degrees......I couldn't watch the GOP stuff last night, I'm just not into some of them at this point. I like Kasich, but we'll see how he does.
My youngest son was making a little over $9/hr at McDonalds while he was in junior college, he was there two years, showed up for work, worked while he was there and didn't cause trouble....he quit to go Army basic and AIT...the other day he went through the drive-thru a few days after getting home and two managers came out and offered him $9.25 to come back. That is how you get a raise. Work for it. BTW, he's working on his botany degree at a university so he couldn't take them up on it.
Hurrah! Give 'em what they want and let 'em choke on it! "UUUHH see, I wanted $15.00 an hour and my food stamps and my free air conditioning and my free heat and my free phone and my free rent voucher and my spending money. you mean have to give stuff up?! Well then I just can't work as much." One of the reasons I mostly confine my comments to the film site (although I read this site every day) is that I disagree with you guys a lot politically and I don't just want to be a contrarian. One of the ways I differ from you all is that I'm A LOT more pro labor and pro union. When I was young and my kids were little and my wife was pregnant I supported a family on minimum wage. (Two jobs) I believe in a minimum wage. But damn, man, I never in my wildest dreams thought that this $15.00 an hour crap would fly. An entry level job is supposed to be an entry... level...job. You learn that you have to be on time. You learn a work ethic. You learn that sometimes your boss might be an asshole and there's nothing you can do about it. They're not supposed to be a career. The $15.00 an hour movement started because people who only do the minimum never wanted to do any more than that and wanted to live off the minimum their whole life. Well now they have it. Let it bite them in the ass.
GypsyTyger
As far as Dan Price goes I think it's hilarious that the real world bit him in the ass. He's also being sued by his brother, who owns 30% of the company. Whoops!
And Critch; Kasich's the governor of Ohio. I live in Ohio. He's a two facev asshole.
GypsyTyger
GypsyTyger, I'm not so much anti-union as I am against union corruption, of which there seems to be a lot, and I'm particularly against public unions, since they can (and have) essentially extort more money from tax payers whenever they want.
It's also another form of cronyism, since union leadership almost always gives to democrats, whether the members want their dues paying for that or not.
I also believe that govt. should never prop up unions when they negotiate themselves out of their jobs like GM did.
As for minimum wage, Thomas Sowell has pointed out that before minimum wage laws, blacks only had single digit unemployment, but since then it has skyrocketed.
I understand how difficult it is to start a family young, and I got less than minimum wage when I started mine while working in the Navy.
However, it didn't stay that way, and I had plenty of incentives to work towards advancement.
It's difficult, to say the least, but all the data shows that increasing minimum wage always results in less employment opportunities.
There's a short term gain for some workers that manage to keep their jobs, but long term it is a net loss for those who can't find work.
Just my two cents.
Is there anyone here who has NOT worked a minimum wage jobs at least once in their life? I worked in the arts, so I did it lots and lots and sometimes as a Union member, btw. (But don't get me started on why I despise unions)
There is one more issue that no one is talking about either...employers are going to become more picky about who they hire. Why pay someone $15 an hour when they have no experience at all (which of course is the whole point of MW jobs - first jobs). So I wonder how the summer/first jobs employment/unemployment numbers are running these days in LA and Seattle?
Andrew - I cannot understand how any of this could possibly be happening. I mean, "they" told us that there would be only rainbows and unicorns if only the minimum wage could be raised to $15 an hour!! I too am shocked at this unforeseen turn of events.
Critch - I have never heard of an employer who did not do as much as they could to keep a good employee (if the employer is a normal person).
GypsyTiger, I grew up hearing my dad griping about how the union leadership screwed the members over time and again, and that most of the members didn't even realize it. Usually it was in the form of pension cuts in exchange for raises--real short-term thinking stuff. Hard to come away from that with a very positive view on unions or their members.
Critch, McDonald's is usually the main company getting dumped on in minimum wage talks, but I've long said that if everything goes south on me and I can't find anything else, I'll gratefully go back to McDonald's because they value good employees.
No place matches them when it comes to grooming employees. Most franchisees start workers on a raise schedule after a week--hardly anyone makes minimum wage at McD's. Anyone with a basic work ethic can be a shift manager in a month. The barest scrap of experience, and you can walk in the door as management. A person with drive can expect to be managing a store within a year--and that's just the first major rung up the advancement ladder.
Most of McD's competitors emulate this model to one degree or another. In other words, there's no excuse to be heading a household on a burger flipping job. If someone gives a damn, burger flipping in the USA is probably one of the greatest opportunities there is.
One of the McDonnell-Douglas engineers we knew at St Louis told us a funny story. He said him and his wife were at a party and a lady asked him what he did and he told her he was an aircraft engineer...she then asked his wife, who told the woman she was a manager for Jack In The Box. The woman said to him, "Well it's good you have a job that pays well." he told me he looked right at her and said, "My wife makes more than I do." The woman was stunned. His wife managed 5 Jack in the Box stores in the St Louis area and had worked her way up from the cash register. She took a percentage of earnings rather than a salary BTW.
Tryanmax - I count myself lucky that, so far, I have not had to work at McDonalds. Not that it's beneath me at all.. I have spent my early adult days working in many jobs that paid MW. But food service of any kind is REALLY, REALLY HARD WORK!!! But, if I had to, I would not hesitate to go for a job.
Most companies like McD want to keep their good employees with the company like any other good company. It costs a lot to train people.
When I was young, I washed dishes for $3.45 an hour... minimum. It SUCKED. But it also taught me very clearly why I needed an education.
OPEN QUESTION: Are there any legal jobs that you would not do even if you were starving?
My answer: telemarketer...there is no scenario, no matter how desperate I was, that would make me do that job...
Bev, I think I would be an exotic dancer before I telemarketed.
What is really funny is the whole argument for a "living wage" was to get people off welfare. The argument is used all the time against WalMart. If they were really serious about this (they weren't) they should have passed a rider stating the people could not quit their job or work less to come off of welfare but that would have been just mean.
The minimum wage laws are completely worthless and should be eliminated but they never will. Actually they are worse than worthless as they hurt the people they claim to be trying to help.
GypsyTyger-
You are always welcome to comment especially if you disagree. We are adults and can handle dissent. Actually I think most of us would welcome it.
Exotic dancer...I would do that, but I would have to pay people to watch me, so that would kind of defeat the purpose...8-/
Gypsy-Tyger - I second that! We welcome differing viewpoints. Frankly, I don't always agree with me either.
Sorry folks, no article tonight. It's been a long day.
We understand.
I agree about telemarketing, worst job ever. I'll never do it again. I'd rather work in the sewers. Beyond that, I'd probably steer away from anything highly dangerous. No ice road trucking for example.
Sorta tied to the minimum wage debate, Kelly Osborne sure showed her true limousine liberal colors the other day with her "who will clean your toilets" gaffe. It goes without saying that if a conservative personality had said that it would be in the news for weeks....
GypsyTyger, Contrary views are always welcome, except for trolls.
In terms of jobs I would never do... working at a rendering plant. Good God the smell!
I appreciate the responses. It's nice to be able to disagree without being disagreeable. And Critch, I saw Kelly's comment. LOL! If a conservative personality had said that they'd be ruined. I think Kelly got her common sense from her dad rather than her mom.
GypsyTyger
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