How the $15 wage is already killing jobs in Seattle

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Unintended consequences.

Via NY Post: Spiking the minimum wage statewide may appeal to a Democrat eyeing a future run for national office. But it’s a bad idea for New York.
Don’t believe us? Look how it’s working out in real life at a town already en route to a $15 minimum — Seattle. An American Enterprise Institute report sums up the results. Spoiler alert: It’s not pretty.
Seattle passed its $15 law in June 2014. Starting last April, it raised the minimum from $9.32 (the state minimum wage) to $10 for certain business, $11 for others.
Increases to $12, $12.50 and $13 an hour began taking effect for most employers this Jan. 1. The jumps will continue until the minimum hits the full $15 an hour in 2017 for some before it’s universal in 2019. Yet even the early impact is harsh.
The AEI study, worked up from Bureau of Labor Statistics’ monthly surveys, shows that, between April and December last year, Seattle saw the biggest employment drop in any nine-month period since 2009 — a full year into the Great Recession.
The city unemployment rate rose a full percentage point.
Before the minimum-wage hikes begin, Seattle employment tracked the rest of the nation — slowly rising from the 2008-09 bottom. But it started to plunge last spring, as the new law began to kick in.
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Furthermore, Seattle’s loss of 10,000 jobs in just the three months of September, October and November was a record for any three-month period dating back to 1990.
Meanwhile, employment outside the city limits — which had long tracked the rate in Seattle proper — was soaring by 57,000 and set a new record high that November.
Seattle is learning that it can’t unilaterally ignore basic economics. Businesses adapt to government dictates. To survive mandated pay hikes, they lay off employees, or avoid new new hires to control costs.
Read the whole story here.
h/t Hot Air.
DCG

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0 responses to “How the $15 wage is already killing jobs in Seattle

  1. Not too many white people in that pic ! Woman under armpit of sign carrier might be white , but that’s about it . Maybe Latino ? Liberal lunacy at it’s best

     
  2. This is great news for working people! Finally they will be earning a just wage.
    Sure there might be some minor difficulties with the sudden increase. A four year phase in would have been better. However, the Business’ that can’t afford to pay a living wage are not sound anyway. Why subsidize an inefficient business with subhuman wages? Why should people suffer so that a badly managed corporation can stay afloat? The well run companies will easily adjust and make higher profits in the long run.

     
    • A question for you …..If you had a business who , had to answer to investors as to why you are paying entry level employees 15.00 an hour . What answer would you give them ? Nobody walks into a job / career making , in your terms , good money without education or experience . The minimum wage was never intended to be a living wage . ……..
      Would you pay a person 15.00 an hour to ask the question , Do you want fries with your order ?

       
      • The problem with shareholders is that they don’t give a flying damn about anything else except maximizing profits.
        I would tell them as CEO, that it’s time we paid a fair and just wage to our employees. Corporations have an obligation to the public good, not just our own profits. We run an very efficient business and can easily make the adjustment that will profit us and the economy in the long run. For once our employees can afford to buy the products they make and they will purchase more from other business too.

         
        • Then employees will have to do fair work– they have to create enough value, per person, to be affordable– the same economics that affect them, affect employers too.

           
        • What is fair ?
          Life is not fair .
          If you had money invested in a company , would you be thrilled at the thought of the C.E.O over paying for entry level jobs ? . It is the responsibility of the job seeker to give the company a reason to hire him in the first place . If you only have basic skills , you only make basic salary . Economics 101 .

           
          • Corporations surely don’t care about what’s fair if workers don’t stand up for their economic rights. If you can’t support your on entry level wages, then the minimum must be raised. Since Corporations won’t voluntarily do the right thing then union collective bargaining or minimum wage laws must be passed. The wage rates are scientifically determined based upon the costs of living. That is fair.
            I agree with FDR when he stated, “No business which depends for existence on paying less than living wages to its workers has any right to continue in this country.” (1933, Statement on National Industrial Recovery Act)

             
            • Kevin J Lankford

              Of course you speak of the same f.d.r. that outlawed the private possession of gold by U.S. citizens and confiscated any and all gold exchanging it for worthless paper.
              Any who truly understand our economy and the creation of money know that it was never intended to be fair to all. Money was created as a tool of enslavement. Perhaps it could even be called black magic for the power it holds over people and the world itself. Its purpose it to represent value and a way of storing value. True value comes from mans labor (at least originally), which means the printers of our currency are actually laying claim to all value, and all labor. Remember it was a rothchild who said ” allow me to print a nations money and I care not who makes the laws”, or something to that effect.
              Money itself once had value, when it was created from precious metals,or even through transactions of valued commodities. Now it is no more than paper of different denominations, and soon actual physical currencies will be done away with all together. A persons worth will be nothing but figures on a computer.
              Does the “mark of the beast” come to mind? The anti-Christ? The one world government?

               
              • You are absolutely right about that. FDR committed trust fraud by bankrupting the government and making the people liable for private banker debts. He is the reason we have a perpetual national debt, along with Wilson who signed the Federeal Reserve Act of 1913.
                However, his second bill of rights advocates Christian workers rights and reforms. It is beyond reproach and conforms completely with the Gospels. Government is our servant and should serve the needy and guarantee God granted unalienable rights to life (healthcare, work) liberty and happiness. I suspect few of the Fox news viewers here have ever read it. https://www.heritage.org/initiatives/first-principles/primary-sources/fdrs-second-bill-of-rights

                 
                • And this is the same f.d.r who gave us Pearl Harbor , and the wonderful Ponzi scheme of Social IN-Security . Ask the survivors of the ” Arizona ” what they think of that weasel , you can’t because there were none .

                   
                  • Yes, but should we be so ignorant to throw out the good with the bad?

                     
                    • What did he do good ? He plunged us into a war which we did not have a ” dog in the fight ” ….Therefore increasing the national debt to the bastard and inbred Rothchild crime syndicate . If that is what you consider good , I’d hate to see your definition of bad , Maybe ” Uncle Joe ” or Mao ?
                      As far as that nonsense about a ” 2nd bill of rights ” . Give me the first and leave my ass alone .

                       
                    • The plutocrats and bankers you rage about don’t care for FDR’s second bill of rights either. FDRs implementation of his New Deal populist programs and reforms was considered by the elites to be a betrayal of their interests. Just so you know whose company you keep in your uncritical indiscriminate rejection of FDR’s administration.

                       
                    • Can you not comprehend this ? All this creep was , another cog in the wheel . If you dislike the country so bad , and search for free health care , move to Cuba , Canada , England ….You should feel right at home being on a waiting list

                       
                • I was in Walmart last night. There were “3” employees on the floor! That was it!!!

                   
    • Confused much?

       
  3. it’s too bad that a minimum wage job can’t support a family, sometimes that’s the only job people can get.

     
    • I thought this was a hangout for Christians? How can you patronized a business that pays their employees poverty wages? Have you no shame. Mathew 25:35 or don’t the Gospels apply to real world economic settings? I bet you own a Apple Ipad and couldn’t care less that it was made in factories with suicide nets surrounding them in China. https://www.bing.com/images/search?q=china+factory+with+suicide+nets&view=detailv2&qpvt=china+factory+with+suicide+nets&id=4DB96C2E9042AA933EBD0BD75D98FFFF7F7D0D36&selectedIndex=6&ccid=CjIhaB2R&simid=608050336464833920&thid=OIP.M0a3221681d91ff5b58432692aa2f5cf3o0&ajaxhist=0
      You know that GOP & libertarians would like slave labor factories here too. It’s the only way corporations would voluntarily move their factories back into the USA.

       
      • I don’t own an iPad. But I’ll be sure to pass this info along to the woman I saw buying pre-made sandwiches at $4.99 each, as well as chips and sodas, at the convenience store with her EBT card. She got into her nice minivan and ate that sandwich she needed for survival while playing on her iPad.

         
        • I don’t believe this story as people on SNAP know the consequences of exceeding their $1.50 day food allowance. But let’s say this is her first month on SNAP and she spends too much for lunch one day. You might find sadistic delight in the fact that she will have nothing to eat for half of the month.
          Did you know that you can get a free cellphone from the government? That’s probably what she was using, perhaps to find work that has been outsourced to china.
          Don’t you feel ashamed as a Christian for repeating these hateful lies about the poor Christ said were blessed?

           
          • Well of course you would say I lie. I’m an ignorant idiot, after all. And I’m certainly aware of the government cell phone program. Didn’t know that includes iPads as well.
            I’ll say it again: I see people making purchases everyday at the store with their EBT, buying junk food, energy drinks, and crappy food that is needed for survival. I especially enjoy watching when one makes a purchase with their EBT card, then pays cash for their cigarettes, blunts, or beer. Warms my heart to know our taxes are helping them survive.

             
            • Do you really believe that this is how all poor people behave? They are all willingly jobless and just pretending to be poor or just committing food stamp fraud because it’s such a luxurious life? This risible canard is what gives your prejudice away. It’s the misanthropic attitude of the plutocrat class. And don’t worry when they’ve genocided the working poor, you middle class snobs will be next.

               
  4. This is soooo irresponsible to do this!!!
    IF you don’t make enough $, you go to a trade school,a Community college; and/or go on to get a degree.
    I have shopped at the same Walmart for years.. They had to lay people off.
    They have fewer people now that have to do the jobs of “3-4” people to afford to keep the store open.

     
  5. Thanks, Democrats!!

     
  6. In many areas of the country, there is a shortage of people in the trades. Those who can work in plumbing, heating/AC, metal fabrication, pipe fitters, master craftsmen in woodwork, stonework, etc. can make a better than average living. Most community colleges provide training at a bargain, but apparently too many individuals are spoiled by the “handouts” and frankly, just too lazy and/or cognitively ill equipped to motivate and apply themselves to anything other than low level service jobs. There’s nothing wrong with service jobs, as they were originally meant for high school and college students to gain basic work skills and experience dealing with the public. When most of our manufacturing went overseas, we noticed more and more mature adults working at fast food venues. Those mature adults who have lost their jobs due to downsizing and corporations moving offshore, have to go back to school, if at all possible. It is really the only way to break out of a minimum wage existence. It’s truly a shame, but $15 is too much to pay for unskilled labor and I’m unwilling to pay $10 for a burger.

     
    • I know a gal who applied for food stamps. She was working and going to community college part-time to get an education for a career. The government told her that since she could afford college, she didn’t need their assistance. It happened in another state too, where the government told her she should ask for less hours because she made too much money (was done with school and working full-time at this point) to receive food assistance. So there’s the government disincentivizing her to get an education to better herself or to work harder in order to get some benes. Screwed up government system…

       
  7. After getting out of the Navy at 24 I went to college on the GI Bill. I got $190 a month. Apartment rent was $90 and was increased to $110 and it was a crap hole of a place. Food and gas wasn’t covered by the remainder so I worked every day at one of four jobs that I found and maintained during my term in college. I realized that if I went to school full time and worked I could get my degree in 3 years so I borrowed money on loan programs when I needed it, I worked and I studied and I got out in 3 years.
    Part time and/or minimum wage jobs are not meant to support a family and only a real nut would think otherwise. Corporations and small businesses have budgets and a portion of that budget covers employee pay and possibly benefits. Exceeding the budget in that area means that you have to have layoffs.

     
    • A “nut” is someone that argues against one’s own rights and interests without realizing it.
      The CEO and shareholders have rights to decent living but workers do not. What sane member of the 99% advocates this?
      If you believe workers don’t have a right to wages that can support their lives and that of their families as a minimum wage — regardless of skill level of the job — then you are the nut.

       
      • CEO’s and shareholders provide the capital and expertise that permits a corporation or small company to exist. In the case of large concerns, accountants and business managers, etc., are degreed and experienced man and women who have attended college, obtained degrees and skills that are required to manage the concerns business affairs.
        A person who did not attend college or who did not complete high school or some kind of useful or vocational training and who has no visible or useful skills and who has little or nothing to offer to help the concern grow and improve, may have a place in the corporate scheme of things, but that slot is small and can be easily filled by any number of people who are willing to work.
        Pay increases typically come with time and a good work record but a top wage should never be paid to someone just because they believe they’re entitled to it.

         
        • Nothing you have said entitles the working person to receive less that a living wage. They perform the work necessary for profits to be made. If your corporation cannot afford to pay the proper wage, then you are incompetent. Why should anyone be your sweat shop worker while you reap big profits sitting on your duff. Burger King, for example, is very well run organization and can easily afford to pay the just wage. They just choose not to out of greed.

           
      • You mean like folk who Fight for $15/hr (often at the behest of some “organizer”) then get laid off when their company can’t employ as many as it did before or fails because it can’t support the new wage structure? It’s happened before and more than once.

         

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