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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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1 posted on 12/10/2014 2:17:11 AM PST by grundle
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To: grundle

The city council opinion was that everyone would just raise their menu cost. Guess it was the wrong assumption. But if people are unhappy...elections are where you correct stupid behavior.


2 posted on 12/10/2014 2:21:09 AM PST by pepsionice
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To: grundle
And with these higher min wage laws, come 'shantytowns': Silicon Valley homeless no longer welcome in 'the Jungle'
3 posted on 12/10/2014 2:27:31 AM PST by DaveMSmith (Evil Comes from Falsity, So Share the Truth)
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To: grundle

I think most supporters of raising the minimum wage to absurd levels either don’t have a good grasp of economics, or are cynics who know they can always just blame the inevitable problems on business owners.


4 posted on 12/10/2014 2:32:15 AM PST by RWB Patriot ("My ability is a value that must be earned and I don't recognize anyone's need as a claim on me.")
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To: RWB Patriot

Silicon Valley will benefit greatly from the coming robot dot com boom. For anyone with an IQ less than one standard deviation above normal the benefits are: food stamps and an Obamaphone to track their movements.


5 posted on 12/10/2014 2:59:31 AM PST by Reeses
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To: grundle

Wuh..wuh..what???

Who could have seen THAT coming???

Wow...

/s


6 posted on 12/10/2014 3:04:57 AM PST by Adder (No, Mr. Franklin, we could NOT keep it.)
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To: grundle

Unfortunately voting yourself money only works for politicians.


7 posted on 12/10/2014 3:44:09 AM PST by American in Israel (A wise man's heart directs him to the right, but the foolish mans heart directs him toward the left.)
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To: grundle

Hey, who knew?/s


8 posted on 12/10/2014 3:57:20 AM PST by freeangel ( (free speech is only good until someone else doesn't like it)
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To: freeangel

If raising the minimum wage is a great idea, why not raise it to a $1,000,000 so no one is poor? I have to use extreme types of examples at work to make my point too. People look at it and they say, it’s only a couple bucks and the owner’s can take less profit or increase their wages etc. but in reality what they’ve done is made the owner to find ways of cutting costs and one of the quickest ways to cut costs is to fire employees or replace hamburger with Alpo. You choose.


9 posted on 12/10/2014 4:07:10 AM PST by Mean Daddy
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To: grundle

Wonder who the first to be laid off was?

The Busboys(s)

Another entry level job that used to go to teens, gone.

I am seeing more and more restaurants having their waiters buss the tables


10 posted on 12/10/2014 4:30:52 AM PST by Tupelo (I am feeling more like Phillip Nolan by the day.)
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To: Mean Daddy

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.


11 posted on 12/10/2014 4:51:46 AM PST by Catsrus (al)
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To: Mean Daddy
If raising the minimum wage is a great idea, why not raise it to a $1,000,000 so no one is poor?

That is ridiculous.

12 posted on 12/10/2014 5:06:45 AM PST by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: grundle

That’s what happens when you let a socialogist set economic policy.


13 posted on 12/10/2014 5:14:56 AM PST by Renkluaf
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To: gunsequalfreedom; Mean Daddy
M D-> If raising the minimum wage is a great idea, why not raise it to a $1,000,000 so no one is poor?

GEF-> That is ridiculous.

I think that is exactly MD's point. ANY arbitrarily chosen minimum wage is ridiculous!! If you're going to choose one, then you may as well choose a good one!

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!!)

14 posted on 12/10/2014 5:16:10 AM PST by John O (God Save America (Please))
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To: John O

The Chamber of Commerce is against the minimum wage, therefore I am for it.


15 posted on 12/10/2014 5:20:49 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: Mean Daddy

I’ve always thought we could kill two birds with one stone.
1. Raise the minimum wage to $1,000,000.
2. Tax those rich bastards to oblivion!


16 posted on 12/10/2014 5:43:05 AM PST by GMMC0987
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To: central_va
The Chamber of Commerce is against the minimum wage, therefore I am for it.

Even though that posture, in effect, places you against small business and teen employment?

17 posted on 12/10/2014 5:47:27 AM PST by okie01 (THE MAINSTREAM MEDIA: Ignorance on Parade)
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To: grundle
During Apartheid, South Africa had a very high minimum wage. The purpose was to allow employers to discriminate against Blacks. Before they passed the minimum wage, employers would get an advantage by hiring Blacks at a lower wage. The minimum wage in this country prices no skill Blacks out of the market.

Back in the 50's, inflation had pushed the minimum wage to irrelevance. Thomas Sowell has pointed out that in the 50's, you know under Jim Crow, Black teenage unemployment was lower than the White teenage unemployment rate. Today, in our liberal, progressive, "compassionate" age, Black teenage unemployment to what 2 or 3 or 4 times the White teenage unemployment rate. But it's progressive, enlightened and compassionate, no the media doesn't mention this to the low information crowd.

18 posted on 12/10/2014 5:48:08 AM PST by Jabba the Nutt (You can have freedom or government schools. Choose one.)
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To: grundle
I see the invention of the “Hamburger 3000” looming in the not to distant future. When labor cost rise to unsustainable levels then machines are created to eliminate the cost....economics 101!!!
19 posted on 12/10/2014 5:56:20 AM PST by ontap
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To: Catsrus

“. If they think businesses are going to take the hit - they are sadly mistaken.”

Businesses have been so vilified by the liberals that sheeple view them as evil. NOT as places that hire people, stir economic growth, create innovation, and are the reason this country has been so successful.

Since the entrepreneurial spirit has been squashed, this country’s demise is close by.


20 posted on 12/11/2014 8:56:19 AM PST by yorkiemom
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