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Minimum wage dissent: San Jose's law resulted in lost jobs [many restaurants cut jobs and hours]
San Jose Mercury News ^ | December 9, 2014 | Michael Saltsman

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 ...


TOPICS: Business/Economy; US: California
KEYWORDS: california; economics; economy; michaelsaltsman; minimumwage; sanjose
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To: John O
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!!)

Let the market set the wage when we have millions of people coming into the country that will work for 70 cents an hour? I don't buy that one.

21 posted on 12/11/2014 5:45:15 PM PST by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: grundle

22 posted on 12/14/2014 10:05:44 AM PST by 2ndDivisionVet (The question isn't who is going to let me; it's who is going to stop me.)
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To: gunsequalfreedom
Let the market set the wage when we have millions of people coming into the country that will work for 70 cents an hour? I don't buy that one.

We need to execute the entire program. And start by executing these non-uniformed enemy combatants whenever we catch them.

If you have a minimum wage the employer will hire illegals and pay them under the table. After all the illegals are criminals anyway what can they do about it. They just want the jobs.

The minimum wage prices Americans out of their own labor market. No one is going to pay $15 per hour for work that is only worth $5 an hour.

Do away with the minimum wage and the worker and employer are freed up to come to a mutually beneficial agreement.

23 posted on 12/15/2014 5:34:13 AM PST by John O (God Save America (Please))
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To: okie01
Adjusted for inflation the minimum wage in the 1967(peak) was 10.75/hour.


24 posted on 12/15/2014 5:38:58 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: Catsrus
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.

Restaurants CAN'T absorb costs. Most are barely making an adequate profit as it is. They can't raise prices much, because people will be less likely to eat out.

25 posted on 12/15/2014 5:56:35 AM PST by PapaBear3625 (You don't notice it's a police state until the police come for you.b>)
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To: PapaBear3625

The wait staff makes has bigger profit margin than the restaurant itself if you tip them 15%.


26 posted on 12/15/2014 5:59:03 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: ontap

Increasing the minimum wage to $15.00 hour is not unsustainable. I am not defending here but do the math. The labor costs in a prepared restaurant meal is about 30%.
Let’s say a diner costs without tip $10.00. Right now $3.00 of that goes to labor. Lets DOUBLE labor costs to $6.00. The meal now costs $13.00. A substantial increase but not “Astronomical”.


27 posted on 12/15/2014 6:03:32 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: RWB Patriot

I used to be in the restaurant business. Most of the profit comes from drinks both alcoholic and non alcoholic. If you order a meal and drink water the restaurant about breaks even. It costs about 3 cents to make a large coke, it retails for over a buck in most restaurants. Do the math.


28 posted on 12/15/2014 6:06:04 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

A 30% increase in a fast food meal puts it at the same price as a full service restaurant which increases the competition considerably. That is the type of increase that starts the ball rolling on reducing rates which translates to eliminating positions.


29 posted on 12/15/2014 9:26:28 AM PST by ontap
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