Posted on 01/05/2007 2:05:18 AM PST by leadpenny
ST. CLAIRSVILLE — Ohio’s new minimum wage is just five days old but already, some businesses have begun raising their prices to pay for it.
On Monday, the state’s minimum wage rose $1.70 from the national level of $5.15 an hour to $6.85. Annual cost-of-living increases will follow. Voters approved the change via a constitutional amendment in the November general election.
About 600,000 of Ohio’s 5.5 million workers got raises Jan. 1.
Several Belmont County businesses said they have cut back on their work force or at least workers’ hours.
Jerry Gasber of Gasber’s Fine Day Restaurant, located on U.S. 40 west of St. Clairsville, said he already has cut back one person on each shift. In addition, he’s had to raise prices.
“It’s very inflationary,” he said of the increase.
It comes at a time when Gasber’s business is being affected by a gasoline surtax on food deliveries and a tax on sanitation. He noted sanitation rates have increased four-fold over the past five years.
At Sonny Boy’s on National Road in Bridgeport, there haven’t been any staff cuts. However, the restaurant has raised its prices by about 50 cents per meal, said Tracy Leiffer, spokeswoman for the business.
Mike Palicka, manager of Garfield’s restaurant in the Ohio Valley Mall in St. Clairsville, said that business hasn’t raised prices yet, “but I’m sure it’s going to come.”
The business, he said, will have to cut back on hours for its employees. However, he doesn’t think it will be a problem. The wage increase comes at a time when the holiday rush is over and many employees are returning to school, he said.
At the Subway store in Martins Ferry prices have gone up by 20 cents a sandwich, said manager Loren Beckett. However, there have been no cuts in staffing, she said.
But the increase seems to have had no effect on the Convenient Food Mart in Flushing, according to manager Linda Porter.
The same goes for Zontini’s Pizza in Martins Ferry and Carlini’s Pizza in Shadyside.
When asked if he’d seen any changes, Zontini’s manager John Canter said “not really.”
According to published reports, U.S. House Speaker Nancy Pelosi, D-Calif., has indicated a federal minimum wage increase will be part of her first 100-hour agenda. The measure would call for a raise to $7.15 an hour, but it is not expected to include adjustments for inflation.
Meanwhile, Michigan’s minimum wage will go from $6.95 to $7.15 on July 1 and to $7.40 a year later.
Pennsylvania’s minimum wage rose to $6.25 an hour on Monday and will increase to $7.15 on July 1. The increase was approved by the state’s General Assembly and was signed by Gov. Ed Rendell in July
60% of minimum wage earners work part-time (the media won't say that)
And anyone at the poverty level already qualifies for the EITC ,anyway.
(Just transfering the welfare state to businesses-now improved, with the help of the RINOs!)
Oh man, thanks for that picture. I've moved recently and don't have the tv hooked up yet. I heard that she had her grandchildren with her, but didn't know she went all out like this.
Who do these libs think they're fooling??? What do these kids have to do with the legislative process? And from a feminist perspective, Pelosi is the first female Speaker and she chooses to surround herself with kids?? Doesn't make sense.
For once, I'd like politicos to stop worrying about the children and start worrying about working, taxpaying adults.
60% of minimum wage earners work part-time (the media won't say that)
And anyone at the poverty level already qualifies for the EITC ,anyway.
(Just transfering the welfare state to businesses-now improved, with the help of the RINOs!)
Raising wages may increase some prices, but it does not cause inflation.
What's the minimum wage in Japan?
"In other words, the Democrats are a bunch of complete turd-brained idiots."
And 50% of the country that vote for them too. You can thank a large chunk of women voters for that too whom vote on emotions instead of logic.
So overall, the only way for businesses to pay their increased expenses is to pass on the costs to their customers.
Thurday,1/11 at the Lone Star Restaurant, 7495 Mentor Avenue, Mentor @ 7:00 PM. We have the back room reserved and we can order food/drinks from there.
Inflation is a monetary phenomenon. If the government creates more money than the economy needs, the extra causes inflation.
Now businesses doesn't only have to pay more for hiring teenagers, but now they are required to pay higher for unions which this clause is tied in their contracts.
Yes.
So overall, the only way for businesses to pay their increased expenses is to pass on the costs to their customers.
If the consumer doesn't get more money (pretend the money supply is perfectly managed) then he can't buy the same amount of goods. So he buys fewer of these now higher priced goods, or reduces consumption of other goods. If all consumers do that, the demand for these goods drop, producers reduce their workforce and reduce production until prices drop back to a lower level.
I'm just curious as to how many employees he had who are actually working for minimum wage? The fact that he would do a 25% cut across the board in hours to make up for a 20% increase in the minimum wage would have to mean that every one of his employees was a minimum wage earner. Further, if all of his employees were minimum wage earners, he could only justify a 20% decrease in hours. Somehow I think someone is being disengenuous.
I suspect he is using this hike as a means to attempt to force an increase in productivity over and above the effects of the new minimum wage law.
Frankly, I suspect (as an independent grocer) that none of his employees were being paid minimum wage beyond the 90 day probation period.
Call me cynical.
Ahhh if there were no laws setup to allow corporations to exist then there would be no corporations, thusly there would be lots fewer jobs being that most large scale operations would not operate under a sole proprietorship.
Of course all the foreign countries who did allow corporations to exist would then have a large influx of new businesses.
I am guessing logic is not one of your strong points is it?
Why aren't those kids in school?
The YMCA in Dayton announced they were raising membership fees.
When I started working (restaurant), minimum wage was about $3.25/hour. After working there about two months, not missing any scheduled shifts, showing up on time, covering shifts when needed, and actually working hard, they bumped me up to 3.50, then soon $4, and on up. If you prove your worth to your employer, you won't be making the minimum very long. Even though I made more that minimum, I didn't sit back and say "wow, I make $2 over minimum, I've got it made!!" I saw the wait staff pulling in closer to $12/hour with tips, and got into that. Isn't that just common sense to try to work hard, improve your skills, and be of value to your employer? We really don't need a minimum wage.
Raising prices is inflationary.
Say the economy produces $1 billion in goods and the money supply is $1 billion. A price is raised. No more goods are created, no more money is created. How is that inflationary?
This is southern, rural Ohio, and I don't doubt for a moment that most employees are at or near minimum. $7 an hour used to be a "nice" unskilled hourly around here. Now it is minimum wage. So my guess is that all his employees are now at minimum.
He's going to have to change that to have some kind of graduated scale from his younger and older employees.
I still remain skeptical. Employers are always looking for ways to make their workforce more productive, but cutting their pay and then asking them to work harder is not the way to do it. They will invariably NOT work harder. And since the minimum wage is now 25% higher, they can get their raise by finding another minimum wage job somewhere else that will give them more hours.
I never cease to be amazed at the utter stupidity of many employers and supervisors.
I'm not satisfied even at quadruple minimum wage and that would be true regardless, it doesn't affect me. I work hard to achieve my goals and couldn't care less what the minimum is.
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