Comments on: Downbeat Seattle minimum-wage study targeted by UC Berkeley labor center

By: Dude

Dude — Fri, 30 Jun 2017 01:24:34 +0000

Don’t forget, you’re talking about people the actually believed you could give 30,000,000 people free healthcare and your healthcare costs would go down.

By: Richard Rider

Richard Rider — Thu, 29 Jun 2017 18:52:23 +0000

Here’s the factor that progressives can’t grasp about retail hours. A business can stay open only so long as it covers its VARIABLE costs — primarily labor. When labor costs jump, the “breakeven” point when the business must close it’s doors for the day is much earlier in the evening. It’s going to be difficult to find a burger in Seattle after 10 PM.

Several factors lead to fewer hours paid to people when the wages go up. One factor most people don’t grasp is how a business can “make a profit” when they are open with few customers. Usually, they don’t.

So why do they stay open? They do so to help pay down the FIXED dollar costs.

As long as revenue covers VARIABLE cost (labor, utilities, cost of goods sold, etc.), a business can stay open. But when one of those costs soars (labor, in this instance), the “breakeven” point may be too high to remain open in the off hours. Hence fewer hours worked.

I’ve written an article to explain this to the layman:
http://riderrants.blogspot.com/2016/04/fixed-costs-variable-costs-and-why-no.html

By: Richard Rider

Richard Rider — Thu, 29 Jun 2017 18:45:27 +0000

This study largely shows the SHORT TERM effects. The longer term effects will include more automation, as that labor replacement industry gears up for this rapidly growing need.

Moreover, this study measured the minimum wage effect only through the end of 2016. On 1 January the Seattle minimum wage jumped to $15. Logically the negative effect should grow — especially for unskilled laborers looking for entry level positions.

Teenage employment? That’s going to become less and less available.

By: Richard Rider

Richard Rider — Thu, 29 Jun 2017 18:40:53 +0000

What makes this study so devastating for progressives is that it was done by six doubtless liberal professors in a left wing department of a left wing university in a left wing state. Yet these professors had the academic integrity to report what they found — and got dumped on for doing so.