RATS aren't smart enough to understand the business model of a lemonade stand...
Posted on 07/01/2017 10:25:57 AM PDT by Renkluaf
U.S. Supreme Court Justice Louis Brandeis wrote: “a single courageous state may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.” Seattle’s Minimum Wage Ordinance, passed in 2014, exemplifies courageous experimentation by a local government.
The ordinance aims to increase earnings of low-wage workers as one response to the troubling rise in income inequality and stagnant wages of low-wage workers. There is national and international interest in knowing how it is working. Unfortunately, not all social experiments work entirely as planned.
On April 1, 2015, the ordinance raised the minimum wage for Seattle employees from the state’s minimum of $9.47 to $11 for large employers. On Jan. 1, 2016, the second phase-in period started, when the minimum wage reached $13 for large employers — 37 percent higher than the state minimum wage at that time. Since January of this year, the minimum wage for large employers has been $15.
. . . Our research found that during the second phase-in period, hourly wages paid to low-wage employees increased, as intended by the ordinance. However, our estimates also suggest that the higher wages led to the elimination of more than 5,000 low-wage jobs. Standard economic theory predicts that employers will reduce their demand for labor given a higher wage. In percentage terms, the loss of jobs was significantly larger than the gain in hourly wages. As a result, while some low-wage workers may have earned more, we estimate that the net earnings per low-wage job in Seattle fell by an average of $125 per month. For low-wage workers, this is a substantial loss.
(Excerpt) Read more at seattletimes.com ...
RATS aren't smart enough to understand the business model of a lemonade stand...
Part of socialism is giving away things that don’t belong to you. These socialist jerks wanted to feel good and score points with each other so they gave away the jobs of poor people. Now those poor people are living off the tax payer and these socialists jerks are supporting them, making themselves feel good and oh so useful by taking taxpayer money every day. The cycle continues until it gets to Venezuela territory.
Part of socialism is giving away things that don’t belong to you. These socialist jerks wanted to feel good and score points with each other so they gave away the jobs of poor people. Now those poor people are living off the tax payer and these socialists jerks are supporting them, making themselves feel good and oh so useful by taking taxpayer money every day. The cycle continues until it gets to Venezuela territory.
Common sense: If you force the employer to raise pay rates, the employer, not wishing to reduce profits, will seek relief.
This can be done by increasing efficiency which will reduce the need for employees.
Robots.
Sorry, dead on, on your part.
When people are paid more than they’re worth, robots get the jobs.
I have $50 to spend on hourly wages.
At $9/hour I can hire 5 full-time and one part time person.
At $15/hour, I can hire 3 full time and one part time person, the part-timer’s hours being further reduced.
Just because minimum wage goes up doesn’t mean I can keep the same staff. I have only so much to spend.
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