Raising The Minimum Wage......

[Zam-Zam]

......and the law of unintended consequences:

Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle
Ekaterina Jardim, Mark C. Long, Robert Plotnick, Emma van Inwegen, Jacob Vigdor, Hilary Wething
NBER Working Paper No. 23532
Issued in June 2017, Revised in October 2017
NBER Program(s):Labor Studies

This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance, which raised the minimum wage from $9.47 to as much as $11 per hour in 2015 and to as much as $13 per hour in 2016. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by around 9 percent, while hourly wages in such jobs increased by around 3 percent. Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees’ earnings by an average of $125 per month in 2016. Evidence attributes more modest effects to the first wage increase. We estimate an effect of zero when analyzing employment in the restaurant industry at all wage levels, comparable to many prior studies. '

http://www.nber.org/papers/w23532

Also:

Minimum wage hikes are causing businesses to cut jobs

www.businessinsider.com/minimum-wage-leads-to-job-losses-2017-3

Minimum Wage Hikes Result in Job Loss for Affected Employees

https://www.epionline.org/release/o115/

Why The $15 Minimum Wage Will Cost California 400,000 Jobs

https://www.forbes.com/sites/michae...ill-cost-california-400000-jobs/#5baefafc43b9


Companion story: Meet Flippy!

Flippy the robot is now cooking up burgers near L.A.; is this the end to the short-order cook?

https://www.usatoday.com/story/tech...obot-now-cooking-up-burgers-near-l/390179002/


At least Flippy has a job.....:>)

 

[Barbella]

......and the law of unintended consequences:

Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle
Ekaterina Jardim, Mark C. Long, Robert Plotnick, Emma van Inwegen, Jacob Vigdor, Hilary Wething
NBER Working Paper No. 23532
Issued in June 2017, Revised in October 2017
NBER Program(s):Labor Studies

This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance, which raised the minimum wage from $9.47 to as much as $11 per hour in 2015 and to as much as $13 per hour in 2016. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by around 9 percent, while hourly wages in such jobs increased by around 3 percent. Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees’ earnings by an average of $125 per month in 2016. Evidence attributes more modest effects to the first wage increase. We estimate an effect of zero when analyzing employment in the restaurant industry at all wage levels, comparable to many prior studies. '

http://www.nber.org/papers/w23532

Also:

Minimum wage hikes are causing businesses to cut jobs

www.businessinsider.com/minimum-wage-leads-to-job-losses-2017-3

Minimum Wage Hikes Result in Job Loss for Affected Employees

https://www.epionline.org/release/o115/

Why The $15 Minimum Wage Will Cost California 400,000 Jobs

https://www.forbes.com/sites/michae...ill-cost-california-400000-jobs/#5baefafc43b9


Companion story: Meet Flippy!

Flippy the robot is now cooking up burgers near L.A.; is this the end to the short-order cook?

https://www.usatoday.com/story/tech...obot-now-cooking-up-burgers-near-l/390179002/


At least Flippy has a job.....:>)

If I remember correctly (and I'm sure I do), sane people on this board have predicted these 'unintended consequences' to become the sad reality.

Liberals have absolutely NO CLUE about anything.

 

[Bugsy McGurk]

......and the law of unintended consequences:

Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle
Ekaterina Jardim, Mark C. Long, Robert Plotnick, Emma van Inwegen, Jacob Vigdor, Hilary Wething
NBER Working Paper No. 23532
Issued in June 2017, Revised in October 2017
NBER Program(s):Labor Studies

This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance, which raised the minimum wage from $9.47 to as much as $11 per hour in 2015 and to as much as $13 per hour in 2016. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by around 9 percent, while hourly wages in such jobs increased by around 3 percent. Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees’ earnings by an average of $125 per month in 2016. Evidence attributes more modest effects to the first wage increase. We estimate an effect of zero when analyzing employment in the restaurant industry at all wage levels, comparable to many prior studies. '

http://www.nber.org/papers/w23532

Also:

Minimum wage hikes are causing businesses to cut jobs

www.businessinsider.com/minimum-wage-leads-to-job-losses-2017-3

Minimum Wage Hikes Result in Job Loss for Affected Employees

https://www.epionline.org/release/o115/

Why The $15 Minimum Wage Will Cost California 400,000 Jobs

https://www.forbes.com/sites/michae...ill-cost-california-400000-jobs/#5baefafc43b9


Companion story: Meet Flippy!

Flippy the robot is now cooking up burgers near L.A.; is this the end to the short-order cook?

https://www.usatoday.com/story/tech...obot-now-cooking-up-burgers-near-l/390179002/


At least Flippy has a job.....:>)

It would be far better if the hiked minimum wage were a national law, perhaps set at regional levels.

But, alas, the GOP has insisted for decades on governmental policies that shift income and wealth upward. As a result, the wealth gap has gotten ridiculously large, dragging down the whole economy and leavings millions without a liveable wage. And the more GOP rule we have, the worse it gets. On it goes.

 

[Dawg]

LOL.........stats show raising minimum wage effects employee take-home pay and creates loss of jobs and bugsy wants it to be in all "57" states.........

proof------you can't fix stupid

 

[Zam-Zam]

If I remember correctly (and I'm sure I do), sane people on this board have predicted these 'unintended consequences' to become the sad reality.

Liberals have absolutely NO CLUE about anything.

It's not unlike "predicting" that people who exercise and eat sensibly will live longer and healthier lives, on average than people who don't: You can always find the odd character who insists this is not true ("My grandfather never exercised a day in his life and lived to be 110!"), but common sense tells you that's not typical. Similarly, the odd character can always produce some study that shows there is no correlation between raising the minimum wage and job loss, but again, for most of us, common sense will intervene.

Some companies can afford to replace their minimum wage employees with automation, and the more expensive the labor becomes, the greater the incentive to do so (Common sense yet again). Those who can't afford the robot will either raise their prices, cut staff, or go out of business altogether. As for those who cannot or will not "see it coming", what can we say about them?

 

[Bugsy McGurk]

LOL.........stats show raising minimum wage effects employee take-home pay and creates loss of jobs and bugsy wants it to be in all "57" states.........

proof------you can't fix stupid

Do you know why it would be best for employees to have the minimum wage boosted nationwide?

Put on your thinking cap, if you have one.

 

[connieb]

It would be far better if the hiked minimum wage were a national law, perhaps set at regional levels.

But, alas, the GOP has insisted for decades on governmental policies that shift income and wealth upward. As a result, the wealth gap has gotten ridiculously large, dragging down the whole economy and leavings millions without a liveable wage. And the more GOP rule we have, the worse it gets. On it goes.

Cost of living varies greatly from state to state and from regions with in states. It makes no sense to have a high federal policy designed to be the baseline in expensive cost of living areas. States have been free to add on to the minimum as they see fit, and they have done so. Whether that works out well or not for them, is up for them to decide. For me, I know that I have a budget for what we spend on eating out. And should the costs of that go up, we would simply not go out to eat. How the owners of the restaurants managed to deal with that would be up to them.

 

[Barbella]

It would be far better if the hiked minimum wage were a national law, perhaps set at regional levels.

But, alas, the GOP has insisted for decades on governmental policies that shift income and wealth upward. As a result, the wealth gap has gotten ridiculously large, dragging down the whole economy and leavings millions without a liveable wage. And the more GOP rule we have, the worse it gets. On it goes.

IF you had a business that isn't making you rich but you're fairly comfortable, you keep going but, like most small/medium businesses owners you have to watch what you spend.... and you're paying your employees, say, $9/hour... and suddenly you're forced to pay them $13/hour....

What would YOU do? Obviously you'd try and economize somewhere... you'd HAVE to, to stay in business. So... you either raise your prices, you lay off some people and try and squeeze a little more work out of whatever employees you got left, (or replace them with robots), or you go bankrupt and close your doors for good.

Any other choices you can think of?

 

[Barbella]

Do you know why it would be best for employees to have the minimum wage boosted nationwide?

Put on your thinking cap, if you have one.

Because then they'll get laid off and can collect unemployment?

 

[Bugsy McGurk]

Cost of living varies greatly from state to state and from regions with in states. It makes no sense to have a high federal policy designed to be the baseline in expensive cost of living areas. States have been free to add on to the minimum as they see fit, and they have done so. Whether that works out well or not for them, is up for them to decide. For me, I know that I have a budget for what we spend on eating out. And should the costs of that go up, we would simply not go out to eat. How the owners of the restaurants managed to deal with that would be up to them.

Hence my suggestion to perhaps set it at regional levels.

 

[Dawg]

IF you had a business that isn't making you rich but you're fairly comfortable, you keep going but, like most small/medium businesses owners you have to watch what you spend.... and you're paying your employees, say, $9/hour... and suddenly you're forced to pay them $13/hour....

What would YOU do? Obviously you'd try and economize somewhere... you'd HAVE to, to stay in business. So... you either raise your prices, you lay off some people and try and squeeze a little more work out of whatever employees you got left, (or replace them with robots), or you go bankrupt and close your doors for good.

Any other choices you can think of?

His pal MV posted if minimum went to $15 he'd have to close his restaurant
"$1,000,000" restaurant CLOSED (cough)

 

[Dawg]

Hence my suggestion to perhaps set it at regional levels.

wouldn't work........if region employee had to move to region paying less they would expect same wage they were making before move........streets would be full of screaming Tide Pod eaters.

 

[Barbella]

IF you had a business that isn't making you rich but you're fairly comfortable, you keep going but, like most small/medium businesses owners you have to watch what you spend.... and you're paying your employees, say, $9/hour... and suddenly you're forced to pay them $13/hour....

What would YOU do? Obviously you'd try and economize somewhere... you'd HAVE to, to stay in business. So... you either raise your prices, you lay off some people and try and squeeze a little more work out of whatever employees you got left, (or replace them with robots), or you go bankrupt and close your doors for good.

Any other choices you can think of?

Well, Bugsy? You had 22 minutes to think about it... ANYTHING yet???

 

[Zam-Zam]

IF you had a business that isn't making you rich but you're fairly comfortable, you keep going but, like most small/medium businesses owners you have to watch what you spend.... and you're paying your employees, say, $9/hour... and suddenly you're forced to pay them $13/hour....

What would YOU do? Obviously you'd try and economize somewhere... you'd HAVE to, to stay in business. So... you either raise your prices, you lay off some people and try and squeeze a little more work out of whatever employees you got left, (or replace them with robots), or you go bankrupt and close your doors for good.

Any other choices you can think of?

This is precisely why an arbitrary raise in minimum wage affects the small business owner more so than the large chains - They have a smaller profit margin to begin with, and in many instances, the additional labor costs eliminate it. Good if you're selling "Going Out Of Business" signs, but not much else.

If you want to get rid of small businesses and decrease competition, that's one dandy of a way to go about it.

 

[Barbella]

This is precisely why an arbitrary raise in minimum wage affects the small business owner more so than the large chains - They have a smaller profit margin to begin with, and in many instances, the additional labor costs eliminate it. Good if you're selling "Going Out Of Business" signs, but not much else.

If you want to get rid of small businesses and decrease competition, that's one dandy of a way to go about it.

And still no response from any of our resident dummies... lol

 

[JuliefromOhio]

......and the law of unintended consequences:

Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle
Ekaterina Jardim, Mark C. Long, Robert Plotnick, Emma van Inwegen, Jacob Vigdor, Hilary Wething
NBER Working Paper No. 23532
Issued in June 2017, Revised in October 2017
NBER Program(s):Labor Studies

This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance, which raised the minimum wage from $9.47 to as much as $11 per hour in 2015 and to as much as $13 per hour in 2016. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by around 9 percent, while hourly wages in such jobs increased by around 3 percent. Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees’ earnings by an average of $125 per month in 2016. Evidence attributes more modest effects to the first wage increase. We estimate an effect of zero when analyzing employment in the restaurant industry at all wage levels, comparable to many prior studies. '

http://www.nber.org/papers/w23532

Also:

Minimum wage hikes are causing businesses to cut jobs

www.businessinsider.com/minimum-wage-leads-to-job-losses-2017-3

Minimum Wage Hikes Result in Job Loss for Affected Employees

https://www.epionline.org/release/o115/

Why The $15 Minimum Wage Will Cost California 400,000 Jobs

https://www.forbes.com/sites/michae...ill-cost-california-400000-jobs/#5baefafc43b9


Companion story: Meet Flippy!

Flippy the robot is now cooking up burgers near L.A.; is this the end to the short-order cook?

https://www.usatoday.com/story/tech...obot-now-cooking-up-burgers-near-l/390179002/


At least Flippy has a job.....:>)

It's okay. If employees don't make enough to support themselves, we can supplement their salaries with govt welfare.

Oh, wait. You Republicans want to end govt welfare, amirite?

WWJD?

 

[Arkady]

......and the law of unintended consequences:

Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle
Ekaterina Jardim, Mark C. Long, Robert Plotnick, Emma van Inwegen, Jacob Vigdor, Hilary Wething
NBER Working Paper No. 23532
Issued in June 2017, Revised in October 2017
NBER Program(s):Labor Studies

This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance, which raised the minimum wage from $9.47 to as much as $11 per hour in 2015 and to as much as $13 per hour in 2016. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by around 9 percent, while hourly wages in such jobs increased by around 3 percent. Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees’ earnings by an average of $125 per month in 2016. Evidence attributes more modest effects to the first wage increase. We estimate an effect of zero when analyzing employment in the restaurant industry at all wage levels, comparable to many prior studies. '

http://www.nber.org/papers/w23532

Also:

Minimum wage hikes are causing businesses to cut jobs

www.businessinsider.com/minimum-wage-leads-to-job-losses-2017-3

Minimum Wage Hikes Result in Job Loss for Affected Employees

https://www.epionline.org/release/o115/

Why The $15 Minimum Wage Will Cost California 400,000 Jobs

https://www.forbes.com/sites/michae...ill-cost-california-400000-jobs/#5baefafc43b9


Companion story: Meet Flippy!

Flippy the robot is now cooking up burgers near L.A.; is this the end to the short-order cook?

https://www.usatoday.com/story/tech...obot-now-cooking-up-burgers-near-l/390179002/


At least Flippy has a job.....:>)

Interesting. That would suggest that second minimum wage hike significantly increased productivity, since fewer hours were needed to do the work than before. That probably makes sense -- higher pay means more motivated workers.

 

[Bugsy McGurk]

wouldn't work........if region employee had to move to region paying less they would expect same wage they were making before move........streets would be full of screaming Tide Pod eaters.

You’re missing the point of varying it by region, which is different costs of living in different regions.

 

[Barbella]

You’re missing the point of varying it by region, which is different costs of living in different regions.

IF you had a business that isn't making you rich but you're fairly comfortable, you keep going but, like most small/medium businesses owners you have to watch what you spend.... and you're paying your employees, say, $9/hour... and suddenly you're forced to pay them $13/hour....

What would YOU do? Obviously you'd try and economize somewhere... you'd HAVE to, to stay in business. So... you either raise your prices, you lay off some people and try and squeeze a little more work out of whatever employees you got left, (or replace them with robots), or you go bankrupt and close your doors for good.

Any other choices you can think of?

 

[Barbella]

Interesting. That would suggest that second minimum wage hike significantly increased productivity, since fewer hours were needed to do the work than before. That probably makes sense -- higher pay means more motivated workers.

So I'll ask you the same question I asked Bugsy (that I never got an answer to):

IF you had a business that isn't making you rich but you're fairly comfortable, you keep going but, like most small/medium businesses owners you have to watch what you spend.... and you're paying your employees, say, $9/hour... and suddenly you're forced to pay them $13/hour....

What would YOU do? Obviously you'd try and economize somewhere... you'd HAVE to, to stay in business. So... you either raise your prices, you lay off some people and try and squeeze a little more work out of whatever employees you got left, (or replace them with robots), or you go bankrupt and close your doors for good.

Any other choices you can think of?