The Results of a Seattle Suburb’s Minimum Wage Hike Deserve a Big Fat ‘We Told You So’

IJReview ^ | 6/3/2014 | Michael Hausam

[Beave Meister]

At the start of the year, the Seattle suburb of SeaTac raised the area’s minimum wage to $15, and the consequences are now starting to be felt. And it’s not just the unions who championed the effort, or those who still have jobs, that are feeling them.

Over the last few months, a few things have happened:

Managers have taken more responsibilities on themselves, instead of hiring more workers.

Businesses have laid off workers, or eliminated their plans to hire more.

Area parking now comes with an added “living-wage surcharge.”

Hotels have cut employee benefits, free food, and overtime.

Shocking: when bad ideas are put into place, there are consequences.

The one thing that you won’t read in any of the articles published since the law took effect are stories about businesses hiring more people. Business owners have reported a marked increase in job applications, presumably from those hoping to benefit from the higher minimum wage; but that has not translated into an increase in employment.

[T Ruth]

This article is about a Seattle suburb that has a $15 minimum wage now in effect. The newly-passed Seattle law has a phase-in period. They are different political subdivisions.

[Vinylly]

Yep, even pot is legal in Seattle.

[bigmak007]

Bumper sticker:
Don’t raise wages, just lower taxes

[Amendment10]

"It does not even go to 15 dollars until 2024."

I think that business owners are already appropriately “sandbagging” the rising “flood waters.”

[dfwgator]

And any perks they may have gotten, like free food.....buh-bye....bring your own food or pay for it.

[kingu]

Read the contracts - they are available on the web with a bit of searching. Almost every union, including public employee unions, require a minimum amount ABOVE minimum wage. Thus, if they can raise minimum wage in a locale, ALL the wages of union employees rise by that amount. No strikes, no negotiation, look, new wages. THAT is what all of this is about.

[uncitizen]

Thank you.

[Syncro]

Almost every union, including public employee unions, require a minimum amount ABOVE minimum wage. Thus, if they can raise minimum wage in a locale, ALL the wages of union employees rise by that amount. No strikes, no negotiation, look, new wages. THAT is what all of this is about.

That is exactly correct!

Even top union earners get their wages raised the amount the minimum wage increased.

Even those making hundreds of dollars an hour.

Thanks for bringing that up

[napscoordinator]

Thanks. Very interesting.....a post most worth learning from. You as always are a bundle of information.

[Figment]

“Why not make minimum wage $50/hr?”

You’re lowballing. Make it 10,000/hr and everyone will be a millionair on a part time job

[Finny]

Do not be deceived by the tyranny of "good intentions."

You said it. There is a lot of punishment mentality, and also the "I want a pony" mentality. You get over wanting a pony as a little kid because you figure out the logistics make it a totally stupid fantasy.

There are folks so sheltered from real accountability that they live in a world where they get to have their pony when they grow up! Vegans want to have their pony in a world where we can live without "hurting" animals and still eat healthily and smartly. Environmentalists want their pony in a world where mankind cannot exist and where indeed, the "natural" status quo is as elusive and shifting as wind and dust!

And they want to punish those selfish people who are telling them "no." Like how mean mom and dad were by not letting you have a pony.

[MV=PY]

"If their intentions were noble how come they ALWAYS get things wrong? Not possible. They are destroyers."

I think you underestimate the power of stupidity.

[GeronL]

Yep, they vote for all the goodies and when the bill comes due they are shocked that someone else isn’t paying for it. Like Gretchen Gardner of Austin in that story the other day.

[all the best]

I think you greatly discount darkness. “Liberals” are often quite intelligent. Foolish. But intelligent.

[pepsi_junkie]

I think you give them too much credit. Consider that their intention might be to hurt nasty rich, i.e., productive businesses. They are dark and nasty and just like to wreak havoc.

I don't think they do it just to be mean. that would make them like a force of nature, random and cruel. They are more sinister than that.

I believe they are trying to take the model they used to guarantee themselves eternal power in all the major cities and extend it to the national levels. This requires large amounts of dependency, joblessness, hopelessness and stupidity to succeed. Works for them in cities and seriously, if they cared one iota for the people of the hell hole cities like Detroit they'd stop and say "what are we doing wrong? maybe we ought to try something different" but it's not about the people at all. It's about retaining power.

Stupid, desperate people will keep voting in Democrats, forever, always. It's proven time and time. So they need to make us all stupid (destroy the public schools....check) and desperate. If staying in power forever means wrecking the economy forever, so be it.

You see, they're not mean. They more loathsome than that.

[MV=PY]

"I think you greatly discount darkness"

Touche FReind! Are they smart and evil, or just plain stupid?

It sure is hard to tell.

I think this last "trade" debacle was plain incompetence. Based on Occam's razor, this administration is truly bewildered by concepts such as honor and truth.

We may never know. Either way, it's plainly wrong and nauseating.

[VerySadAmerican]

Maybe this is all Moochelle’s plan. Make junk fast food unaffordable.

[gtwizard]

That would be Seattle that JUST passed a similar law. It fades in over the next 3-4 years but will have the same devastating effect.