How the $15 wage is already killing jobs in Seattle

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.
sawant2
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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japoa
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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

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Guest
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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.

japoa
Guest

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 ?

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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.

Anonymous
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Anonymous

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.

japoa
Guest

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 .

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Guest
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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… Read more »

Kevin Lankford
Member
Kevin 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… Read more »

pm
Guest
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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… Read more »

japoa
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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 .

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

japoa
Guest

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 .

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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.

japoa
Guest

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

upaces88
Guest
upaces88

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

Jack
Guest
Jack

Confused much?

squirrelmistresssquirrelmistress
Guest

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

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Guest
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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.

upaces88
Guest
upaces88

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.

Anonymous
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Anonymous

Thanks, Democrats!!

greenworxx
Guest
greenworxx

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… Read more »

Jack
Guest
Jack

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… Read more »

pm
Guest
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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.

Jack
Guest
Jack

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… Read more »

pm
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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.

Anonymous
Guest
Anonymous

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.

Anonymous
Guest
Anonymous

And again…
“Fast-Food CEO Says He’s Investing in Machines Because He Can’t Afford to Pay Workers,” by Kate Taylor, Business Insider via Yahoo!, 16 Mar 2016
https://www.yahoo.com/finance/news/carl-jr-ceo-predicts-future-203203237.html

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American CEOs want machines because they are greedy (most likely) or incompetent . Their costs will be reduced to a fraction of what it was and typically they won’t pass the savings on to the consumer. Australia pays it’s workers $16.00 an hour and unemployment is extremely low at 4.5%. In fact the wage hike as been a boon for their economy as a whole. https://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=10553 Southern plantation owners complained about the abolition of slavery because they couldn’t afford to pay workers to pick cotton. It seems American corporations are trying to say the same thing with regard to living… Read more »

Anonymous
Guest
Anonymous

You ready and willing to pay for a $11.95 Big Mac meal at McDonald’s?

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Guest
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Do Australians pay $11 bucks for a big mac just because the workers receive a fair living wage? Of course not. https://www.redstate.com/streiff/2015/02/08/minimum-wage-big-mac/
You people have been bamboozled with a lot of neoliberal bunkum. Stop watching television and read some books. Fair wages to workers benefits everyone. It gets spent into the economy to buy more goods which creates more demand, more jobs ect.

Anonymous
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Anonymous

Like this?comment image

Dabigragu
Guest

So now they’re slaves?

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They are saying that you should support their inefficient means of manufacturing by accepting poverty wages. Plantation owners said they need slaves because they couldn’t make a profit on growing cotton otherwise. Is that true? Or are their smarter ways to conduct business that will give workers a fair living wage? Get it now?