Comments on: CA wrestles with minimum wage domino effect

By: Norman

Norman — Tue, 25 Aug 2015 04:17:45 +0000

The public and the politicians haven’t even thought of who will pay for the increase in wages. Someone has to. Data is in for Los Angeles, Seattle and San Francisco: It’ll be lost jobs. But that’s just the first step. Santa is not coming to town.

By: desmond

desmond — Fri, 21 Aug 2015 03:20:46 +0000

Like David Gregory vacationing with his corporate banking attorney wife, and Chris Matthews boating off Nantucke, joining the other one presenters.Let’s not forget Jerry Brown and he 17000 foot loft in Oakland. The only thing green about him and his Gap attorney wife is their shit, but that isn’t t min wage talk….sure is true though.

By: ted E Mind of your Godhead Ted

ted E Mind of your Godhead Ted — Thu, 20 Aug 2015 03:09:50 +0000

Kinda funny
all of these El Rushbo lower middle class screws doing the bidding of the 1 percenters and they have no clue!

By: Dude

Dude — Thu, 20 Aug 2015 02:36:03 +0000

The real growing dilemma is how to get rid of these mentally disabled Democrats that apparently aren’t capable of even basic math.

By: Ulysses Uhaul

Ulysses Uhaul — Wed, 19 Aug 2015 22:03:04 +0000

In reply to Sean.

Business strategy of being everything to anyone at any time or day was a winner for slaver service businesses. Oh…oh!

Some say…look to the rise of the machines…..touted as the new panacea to raise productivity of low ender businesses. Will be interesting to watch a few uneducated button pushers try to whack those spiffy machines into shape!

Inevitable……new business formation will deemphasize use of labor……while high cost social welfare admin costs will rise to the moon trying to mitigate human unemployment misery and violent neighborhood chaos.

The way California is changing is alarming…..for doomers, socialists and dreamy liberals alike-

By: Ronald Stein

Ronald Stein — Wed, 19 Aug 2015 21:47:37 +0000

The unintended consequences associated with increase in the minimum wage may have adverse effects on graduation rates. There was a time when the minimum wage was an incentive to get an education to get into job that would pay a wage to support a family. Now, the crusade toward huge increases in the minimum wage to the point that everyone will be getting similar compensation as those on Social Security. The crusade toward entitlement lives on while the incentive to get educated loses.

Numbers don’t lie but liars can figure. Yes, our employment numbers have improved, but those reporting those great numbers don’t bother highlighting that most are in the food service and hospitality sectors. The public focus is diverted to those not making enough on minimum wages, i.e., those in the food service and hospitality sectors, and the crusade is to RAISE the minimum wage! Rather than heal the wounds resulting from constant attacks on businesses that are driving out many high wage positions and driving up the costs for those that remain in California, the easy way out is to apply a “band aid” on the wound rather than heal the wound.

An unintended consequence of raising the minimum wage will be adjustments in the cost of services and good, creating an even bigger underclass of unemployable people.

But wait, another unintended consequence associated with the upcoming minimum wage increases will be a great way to incentivize kids to drop out of school. Imagine the carrot of a huge minimum wage of a $25 to 30,000 a year minimum wage as a reward for no higher education. These kids will also be netting more than those on fixed income Social Security. It may be better to stop beating up on businesses with over regulations, over taxation, and uncontrollable “fees”, all to pay for ballooning government spending, that are slight inconveniences to those making the big bucks, but the California financially challenged will continue to disproportionally pick up the costs “camouflaged” at businesses as the costs of burdensome regulations disproportionately affect young people and other Americans who are living within limited means.

By: Sean

Sean — Wed, 19 Aug 2015 19:28:44 +0000

California has both the highest state GDP in the nation and the highest rate of poverty with cost of living considered. If you read about the guy with the pizzeria mentioned in the original LA Times article above also had to raise prices, saw his revenue drop by 30% and has had to close a couple of his stores for lunch. I suspect that most restaurants will be raising prices and cutting back hours to try and stay in the black. Their customers who might have gone out to have $12 fresh pizza vs. $8 frozen pizza may eat at home more often if the price of dining out is way too high.
The other thing most minimum wage articles don’t get into is how higher incomes move people across thresholds with respect to government assistance. Some employers have had employees ask for reduced hours so that they don’t lose benefits. http://www.myfoxorlando.com/story/29616731/seattle-sees-fallout-from-15-minimum-wage.
Finally, the businesses that will most easily handle the transition to higher wage work forces are not the mom and pop independent establishments but the big franchises that can develope software and hardware to automate order taking, money handling and food prep.
It will be interesting to see how the higher minimum wage laws affect business formation and real wage growth. Let’s just hope it does not end as it did in Puerto Rico where applying the US mainland min wage to the poor island resulted in a 30% lower labor participation rate and the state on the brink of bankruptcy.

By: Skep41

Skep41 — Wed, 19 Aug 2015 18:32:02 +0000

Lucky we dont have a porous southern border or a few of those tricky foreign types might be tempted to sneak across the border and undercut the wages of our entry-level teenagers or struggling unskilled workers, especially when we raise the incentives for employers to save money by hiring them.
Of course we’re all ready to pay much more for food in restaurants, especially since that raises the 20% tip we add (somehow mysteriously risen from 15% a few years ago).
Straw? Camel’s back? There is no limit to the amount we can raise prices and taxes.