Posted on 12/10/2014 2:17:10 AM PST by grundle
San Jose's new minimum wage took effect on March 13, 2013, although employers had the previous three months to prepare for the increase. That year, the unemployment rate for young adults in the San Jose metro area jumped sharply by six percentage points -- from 14 percent in 2012 to 20 percent in 2013... Meanwhile, the overall unemployment rate in the same area fell by nearly two percentage points, suggesting that young adults suffered while others did quite well.
... an EPI survey of 163 restaurants in San Jose, 45 percent of which cut employee hours and 42 percent of which reduced staffing in response to the hike.
"I am struggling mightily. I've had to cut staff," Caughe said. "I've personally had to work my own kitchen and my own bar a lot more than I need to, instead of spending the time ... to promote my business and pay my bills and do paperwork."
The city's oldest restaurant, Original Joe's, also has cut back on staff and employee hours. Co-owner Matt Rocca told USA Today that the hike cost his restaurant $90,000 a year, forcing him to lay off five of his 67 employees and shift closing time up to 11 p.m.
(Excerpt) Read more at mercurynews.com ...
The city council opinion was that everyone would just raise their menu cost. Guess it was the wrong assumption. But if people are unhappy...elections are where you correct stupid behavior.
I think most supporters of raising the minimum wage to absurd levels either don’t have a good grasp of economics, or are cynics who know they can always just blame the inevitable problems on business owners.
Silicon Valley will benefit greatly from the coming robot dot com boom. For anyone with an IQ less than one standard deviation above normal the benefits are: food stamps and an Obamaphone to track their movements.
Wuh..wuh..what???
Who could have seen THAT coming???
Wow...
/s
Unfortunately voting yourself money only works for politicians.
Hey, who knew?/s
If raising the minimum wage is a great idea, why not raise it to a $1,000,000 so no one is poor? I have to use extreme types of examples at work to make my point too. People look at it and they say, it’s only a couple bucks and the owner’s can take less profit or increase their wages etc. but in reality what they’ve done is made the owner to find ways of cutting costs and one of the quickest ways to cut costs is to fire employees or replace hamburger with Alpo. You choose.
Wonder who the first to be laid off was?
The Busboys(s)
Another entry level job that used to go to teens, gone.
I am seeing more and more restaurants having their waiters buss the tables
I would gesture to say that most people are economically illiterate. If they think businesses are going to take the hit - they are sadly mistaken. They either pass the hike on to the consumer or do what these businesses are doing - cut hours and staff. Lands, I can’t believe the stupidity of some Americans - those who run governments should be required to take economic classes.
That is ridiculous.
That’s what happens when you let a socialogist set economic policy.
GEF-> That is ridiculous.
I think that is exactly MD's point. ANY arbitrarily chosen minimum wage is ridiculous!! If you're going to choose one, then you may as well choose a good one!
Returning to sanity, it's far better to let the market set the wage. Minimum wage work is not worth what is being paid for it in most locations now (How much skill does it take to flip a burger? And for crying out loud they always get the orders wrong anyways!!)
The Chamber of Commerce is against the minimum wage, therefore I am for it.
I’ve always thought we could kill two birds with one stone.
1. Raise the minimum wage to $1,000,000.
2. Tax those rich bastards to oblivion!
Even though that posture, in effect, places you against small business and teen employment?
Back in the 50's, inflation had pushed the minimum wage to irrelevance. Thomas Sowell has pointed out that in the 50's, you know under Jim Crow, Black teenage unemployment was lower than the White teenage unemployment rate. Today, in our liberal, progressive, "compassionate" age, Black teenage unemployment to what 2 or 3 or 4 times the White teenage unemployment rate. But it's progressive, enlightened and compassionate, no the media doesn't mention this to the low information crowd.
“. If they think businesses are going to take the hit - they are sadly mistaken.”
Businesses have been so vilified by the liberals that sheeple view them as evil. NOT as places that hire people, stir economic growth, create innovation, and are the reason this country has been so successful.
Since the entrepreneurial spirit has been squashed, this country’s demise is close by.
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