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Ohio Feeling Effects of Minimum Wage Increase (Rest of US not far behind)
The Intelligencer Wheeling News-Register ^ | 05 Jan 07 | MICHELLE BLUM

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


TOPICS: Front Page News; US: Michigan; US: Ohio; US: Pennsylvania
KEYWORDS: unions
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To: skimask
Rhe Democrats think that raising the minimum wage won't cause business owners to raise their prices. Since the evil business owners have so much money they should share it with those that don't.

I hear that Neil Cauito had a rather nasty run in with Barney Frank during an interview regarding putting limit on the salary of CEO's.

21 posted on 01/05/2007 3:25:34 AM PST by mware (By all that you hold dear... on this good earth... I bid you stand! Men of the West!)
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To: leadpenny

I believe that the minimum wage push is not about poor working people, but about the Unions pushing the Dumbs to raise them.
Almost all union contracts are tied to increases in minimum wage. When the minimum wage is raised so are the wages of the union workers. As I see it the minimum wage serves no useful purpose. Amen.


22 posted on 01/05/2007 3:41:06 AM PST by gakrak ("A wise man's heart is his right hand, But a fool's heart is at his left" Eccl 10:2)
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To: gakrak

xactly.


23 posted on 01/05/2007 3:49:06 AM PST by leadpenny
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To: leadpenny
For anyone who's curious...

Minimum Wage Statistics

24 posted on 01/05/2007 3:56:39 AM PST by mewzilla (Property must be secured or liberty cannot exist. John Adams)
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To: mewzilla

Facts! Nancy and the gang don't want no steeenking facts.


25 posted on 01/05/2007 3:59:10 AM PST by leadpenny
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To: Lurker
The Dims can't even understand that the tax cuts have resulted in increased tax revenue.

I didn't expect them to have to foresight to get this right either.

They fail to understand the simplest of concepts. Thats exactly why Kerry said he had a plan(s) but couldn't say what they were until after the election. To his credit he was smart enough to know how stupid he was, and that he couldn't show that stupidity to the people before they voted.

26 posted on 01/05/2007 4:01:12 AM PST by libs_kma (Monica blew while Al-Queda grew.....Oh well, Clinton happens!)
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To: syriacus

Don't encourage them. They think that that's exactly how economics works.


27 posted on 01/05/2007 4:04:14 AM PST by Hardastarboard (Hey! What happened to my tagline?)
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To: Hardastarboard
Maybe then they can dig those "Whip Inflation Now" pins out of mothballs.

L

28 posted on 01/05/2007 4:10:42 AM PST by Lurker (Europe killed 6 million Jews and as a reward they got 40 million Moslems. Karma's a bitch.)
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To: Hardastarboard

Minimum Wage Hikes are linked to UNION WAGE CONTRACTs. If the Rate is increased, all Union workers get a raise.

Payola.


29 posted on 01/05/2007 4:12:34 AM PST by Broker (Haddi Nuff)
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To: leadpenny
Why will liberals whine endlessly about the cost of oil and its impact on other prices, but they can't see the same connection to the cost of labor?
30 posted on 01/05/2007 4:12:49 AM PST by TankerKC (32570 21R)
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To: PA-RIVER
"For the Children"

It will be a mojor theme. Witness...


31 posted on 01/05/2007 4:41:03 AM PST by TankerKC (32570 21R)
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To: backhoe

CEO pay gets passed on to customers as well. But nobody here is bitching about that.


32 posted on 01/05/2007 4:45:44 AM PST by Wolfie
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To: Wolfie
CEO pay gets passed on to customers as well. But nobody here is bitching about that.

Because CEO pay isn't controlled by a LAW. You get that, right?

33 posted on 01/05/2007 4:47:08 AM PST by TankerKC (32570 21R)
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To: leadpenny
Basic lesson in economics: there are two types of costs that can afflict business, fixed and variable costs. Fixed are costs the business can do nothing about - namely taxes, cost of labour, cost of energy, etc. Variable - the amount of labour, etc. - they can. By boosting fixed costs, businesses will be required to attack variable costs or increase prices to maintain profitability. By boosting wage costs, they either set up for less labour to be employed or for prices to go up.

In other words, the Democrats are a bunch of complete turd-brained idiots.

Regards, Ivan

34 posted on 01/05/2007 4:52:46 AM PST by MadIvan (I aim to misbehave.)
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To: DB

Maybe the answer is to have the ballot initiative that raises the minimum wage should also REQUIRE companies that are affected by the increase also MUST increase their prices, across the board, by the same percentage. If it's a 20% increase then their would have to increase their prices by 20%. The voters should also be willing to force the customers to help fund the increase. Only FAIR!


35 posted on 01/05/2007 4:56:14 AM PST by jwparkerjr
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To: backhoe

"The "businesses" do not pay this...

...their customers do."

Don't forget about the increased weekly payroll taxes. Employer matching SS and Medicare will increase weekly to line the treasury. Where does that money come from? It don't come from the money tree!


36 posted on 01/05/2007 4:59:47 AM PST by poobear (Once people escape the tender mercies of big government, they don't want to go back.)
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To: Broker
re: Minimum Wage Hikes are linked to UNION WAGE Contracts

How true! And, in my experience every person working for a company that pays minimum wage to start also has to raise others in the company by the same amount. Otherwise the entry-level workers end up making more than the company's longer-term employees. That dollar or so an hour is just the beginning, it reverberate through the company's entire wage structure.
37 posted on 01/05/2007 5:00:52 AM PST by jwparkerjr
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To: leadpenny

And this is unexpected? Where to the *raise the minimum wage* people expect the moeny to come from? News for them, too; minimum wage jobs are not meant to be lived on.


38 posted on 01/05/2007 5:04:21 AM PST by metmom (Welfare was never meant to be a career choice.)
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To: Wolfie
"CEO pay gets passed on to customers as well. But nobody here is bitching about that."

Hmmm I must have missed the bill congress passed that gave a mandatory raise to CEOs.

Could you provide a link to such?

39 posted on 01/05/2007 5:06:02 AM PST by Mad Dawgg ("`Eddies,' said Ford, `in the space-time continuum.' `Ah,' nodded Arthur, `is he? Is he?'")
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To: leadpenny

What goes up must come down. Will it be the business owners' fault next? The politicians will tax the rich businesses to make up for the inequity, thus starting another spiral of price hikes. Yep, what goes up must come down. The unwashed masses these predators preach to are oblivious that they are being conned and coined all for a vote.


40 posted on 01/05/2007 5:07:52 AM PST by commonguymd
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