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Surprise! $15 an hour minimum wage backfires
American Thinker ^ | 06/02/2014 | Thomas Lifson

Posted on 06/02/2014 7:12:58 AM PDT by SeekAndFind

It turns out that leftists can’t repeal the law of supply and demand. In the Seattle suburb of Seatac, adjacent to the airport and full of parking lots, hotels, and restaurants with many low wage employees, the minimum wage was hiked to $15 an hour, and the results of this social experiment are coming in. United Liberty reports:

February report from the Seattle Times revealed:

At the Clarion Hotel off International Boulevard, a sit-down restaurant has been shuttered, though it might soon be replaced by a less-labor-intensive cafe…

Other businesses have adjusted in ways that run the gamut from putting more work in the hands of managers, to instituting a small “living-wage surcharge” for a daily parking space near the airport.

That’s not all. According to Assunta Ng, publisher of the Northwest Asian Weekly, some employees are feeling the pinch as employers cut benefits. She recalls a conversation she had with two hotel employees who have been affected by the wage hike:

(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: Washington
KEYWORDS: minimumwage; washington
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To: SeekAndFind
I'm all for that Bracaro program. Way back, a cranberry bog owner actually had to try to find workers in the community before he could bring in contract labor from Cambodia. Some locals going through tough times actually took those jobs and got a fresh start.

I just don't know how we get back to sanity easily. The percentage of those who don't work among young adults is staggering. They have to be brought into the job market. This cuts across ethnic and racial lines. As near as I can see, it doesn't involve ability. It's that it's too easy for them to survive without working.

The US needs a "time out" to stabilize our population.

41 posted on 06/02/2014 8:13:11 AM PDT by grania
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To: SeekAndFind
...as employers cut benefits...

Well, obviously the solution is to raise it up to $25/hr now to compensate for the reductions in benefits.

42 posted on 06/02/2014 8:14:08 AM PDT by Cementjungle
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To: jiggyboy

I would expect that the minimum wage workers would be limited to the number of hours that prevent unemployment bennies; thus, the employer is in the clear. Jus sayin...


43 posted on 06/02/2014 8:15:58 AM PDT by SgtHooper (This is not my tag!)
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To: Blood of Tyrants
and what are the chances that Congress will get tough on illegal immigration

Whatever their rhetoric, just a little time in DC and all but a few are seduced by the Chamber of Commerce message. It'll take a real crisis, probably after it's too late, for DC to stop the insanity.

44 posted on 06/02/2014 8:16:10 AM PDT by grania
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To: SeekAndFind
It's all about Consequences.

Something Liberals never understand. They think just because they say it, it will be so.

45 posted on 06/02/2014 8:19:01 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: MrB
Sounds like they need directive 10-289 to solve this problem.

Wondering how many people will get that reference .... well played.

46 posted on 06/02/2014 8:20:00 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: grania
I just don't know how we get back to sanity easily. The percentage of those who don't work among young adults is staggering. They have to be brought into the job market. This cuts across ethnic and racial lines. As near as I can see, it doesn't involve ability. It's that it's too easy for them to survive without working.

I do not remember where I saw it, but I read last Friday that one in six American males between the ages of 25 and 54 IS NOT WORKING.

That's worse than the Great Depression. The media's silence is deafening.

47 posted on 06/02/2014 8:22:09 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: grania

raising the minimum wage accomplishes nothing.

the price of everything simply goes up and those people still employed who are making more lose some or all assistance they are getting. When all the dust clears, they could conceivably have less total income they before and be able to buy less with each dollar.


48 posted on 06/02/2014 8:23:07 AM PDT by TexasFreeper2009 (Obama lied .. the economy died.)
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To: SeekAndFind

But it sounds and feeeeeeeeels so good! Isn’t that enough for you people????


49 posted on 06/02/2014 8:26:09 AM PDT by Phillyred
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To: SgtHooper

Maybe; unemployment payments are a state program. (The feds either outright gave or “loaned” many billions to many states during the worst unemployment period of 2008-2009.) I know that a couple of years ago CA did not distinguish between full time or part time; they asked how much did you make each of the last six quarters, and based the payment on the highest quarter.


50 posted on 06/02/2014 8:30:25 AM PDT by jiggyboy
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To: SeekAndFind

“It turns out that leftists can’t repeal the law of supply and demand.”

Well, they could (sort of) if they went full-bore communism. OK, not exactly a repeal, but more like they could moot it since there would be zero supply but infinite demand.


51 posted on 06/02/2014 8:31:11 AM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: SeekAndFind

Had a local McDs that was going to fall under the boom of the Obama 10.10 an hour wage increase for military contractors. It’s on military leased property but had civilian access. Was always busy but Mcds ran the numbers and closed it. They couldn’t afford it. Other area Mcds were at least able to find the displaced workers jobs. So now dependents who worked there and were able to walk or bike to work can’t.

They still have a bowling alley that came under the same contractor wage rules. Friends wanted to go in and get some food but not bowl. The place instituted an 8 dollar cover charge if you’re not bowling. They didn’t say it but the cover charge was to make up for the Obama wage rules.


52 posted on 06/02/2014 8:37:15 AM PDT by Hillarys Gate Cult (Liberals make unrealistic demands on reality and reality doesn't oblige them.)
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To: DaveA37
Won’t be long and the entire ocean will be contaminated with their stupid idea of a $15.00/hour min wage.

The $16, then $18, then $20...

53 posted on 06/02/2014 8:48:19 AM PDT by VRW Conspirator (Global Warming is caused by illegal immigrants!)
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To: grania

I think you may have answered your own questions.


54 posted on 06/02/2014 9:09:47 AM PDT by oldtech
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To: latina4dubya
"When did Seattle go to $15 an hour? wasn’t the plan just announced about a month ago? i had not realized it was already happening..."

The city council is voting on it today, and it will pass (it passed 7-0 in committee). It goes into effect next April, but I think it is phased-in over three years with different timetables for corporations and small businesses, and different rules for minors.

I think it very well might jeopardize my son's job and my girlfriend's job. My son works in Seattle Seahawks merchandising, and this law plus Obamacare might cause them to outsource the entire merchandising operation, as is done by most teams. My girlfriend works for a small business that might not be able to afford the minimum wage requirement without cutting staff.
55 posted on 06/02/2014 9:10:00 AM PDT by Steve_Seattle
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To: SeekAndFind
"On May 1, Seattle Mayor Ed Murray announced he had brokered a deal to raise the city’s minimum wage for all workers from $9.32 to $15 an hour, the highest in the country."

I believe that deal only applies to City of Seattle (government) employees. The comprehensive wage increase is being voted on today.
56 posted on 06/02/2014 9:12:29 AM PDT by Steve_Seattle
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To: Kirkwood

If the workers can only make 2.5 cups of coffee per hour, the business is doomed anyway.

I used to be opposed to raises in the minimum wage. The argument that supply and demand should set the wage makes perfect sense economically, socially and morally. But the problem is that the business community isn’t satisfied with that. They believe they should pay far less than any employee will work for, and when no employee will take the job, they should be able to import foreign workers, and leave the public to pay for food, housing, shelter and medical care.

There is a minimum wage in America, and it’s a lot more than $15 an hour. The only thing is that its paid for by taxpayers, not employers. It’s about damned time employers pay for their own workers.


57 posted on 06/02/2014 10:06:03 AM PDT by dangus
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To: grania
I'd like to see the minimum wage be raised, but not too quickly, so that people who have full time (or nearly so) jobs don't need government handouts.

In other words, you support stupidity and liberalism as long as it happens slowly.

Listen up. The REAL minimum wage is ZERO. These folks are finding that out. It is entirely un-conservatinve to support any minimum wage (i.e. a wage level that is artificially set by bureaucrats). Let the market decide what a job is worth and we will all be better off, or we can go full stupid and turn it over to the politicians and watch in confusion as the law of unintended consequences goes to work.

58 posted on 06/02/2014 11:51:52 AM PDT by BlueMondaySkipper (Involuntarily subsidizing the parasite class since 1981)
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To: thirst4truth

Seattle City Council is voting on it today.


59 posted on 06/02/2014 11:58:21 AM PDT by CityCenter (Resist Obamacare!)
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To: BlueMondaySkipper
I'll repeat my reasoning. "Let the market decide" doesn't apply when the US worker is undermined by cheap foreign labor, legal and illegal. Another aspect is that we are in a race downward economically if goods which are produced by slave labor in foreign countries can undercut goods manufactured in the US. We need tariffs to stop that practice.

And please don't try the sophomoric argument that the US citizen benefits. Our globalist masters get obscenely rich from the practice, while US citizens become ever more dependent on government handouts. Haven't you noticed? The gap between rich and poor and the destruction of the middle class is out of control.

60 posted on 06/02/2014 12:10:23 PM PDT by grania
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