$15 minimum wage

[flywise]

Simple
Destroy jobs
Create more dependence on the gov.
Now you have a whole bunch of slaves

[jnd1959]

In industries where unskilled labor is a significant portion of the costs and margins are very low, there will be inflationary pressures on prices. In industries with the same cost structure but higher margins, profit will suffer. Some say this is fine as business owners don't need all that money anyway. This misses the point. The wealthy don't go around buying up airplanes and yachts. They invest that in other businesses either through the market or private placements. If profit margins decrease but risk remains the same there will be less of that product.

Additionally, raising the minimum wage for unskilled workers will primarily hurt the entry level employee. If I am a teenager competing with someone that has two years experience, and I can't discount my rate below the market, I will not get hired.

Finally, if the minimum wage is above the market rate, those industries that can further automate will. I would expect to see major fast food moving to discounted app ordering. And, as some pizza places already do, you are texted a code and pick up your pizza in the warmer using the code. No front person necessary.

As far as other unskilled services such as lawncare, these already use contract labor to avoid payroll costs. I expect the new congress and the incoming president to crack down on this. those are low to mid margin industries. Here, I would expect them to move to automation. We're not far from one guy watching two automated mowers and two automated weed eaters do their work.

Anytime you raise costs without raising productivity, something has to give. Either I move to more productive employees (read more experienced), automate, absorb the additional costs, decrease services (how many gas station attendants do you see now?) or go out of business.

In this case, areas where the market is already above the minimum wage will see no effects. Areas where the market is significantly below the minimum wage will see the most disruption. This is my main complaint with a federal minimum wage. It is based on market costs in major metropolitan areas. That disruption will primarily affect those areas where costs of living are lower.

And no, I don't have a major in economics, I have a minor.

[texansfan]

Don't forget, what about all the ingredients in the combo? Labor to process meat, labor to farm vegetables, cost of manufacturing of cups and cardboard containers, labor to have it all delivered and distributed, fuel costs increasing for all logistics on their end, rent increases so the property management firm can cover their increased labor costs......It's more then the $.15 cents you think per combo.

Now extrapolate that across all business.......

Again.
This is all part of econometrics.

https://www.federalreserve.gov/econresdata/feds/2015/files/2015042pap.pdf

A little light reading for you

[rtp]

Reminds me of the old saying........Hello, Im from the govt and Im here to help you.

[JBJTX81]

I'm in Healthcare. Labor is 55% of our entire expense. Our average wage rate for our company is right at 20/hr (roughly 1k employees). These are folks making 8/hr to 70/hr. A majority of our revenue is from the govt and fixed at certain rates. Our entire industry would literally go bankrupt if this were to happen with no offset in revenue. I'd venture without having the stats in front of me that 50%+ of my employees make less than 15/hr.

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[Throwin Darts]

If you have an employee that's been with you for ten years and still only makes $9 that says more about YOU than anything

It says everything about the employee. If the employee had a set of skills that the market valued above $9/hr then the employee would seek employment elsewhere. This is not slave labor. Employees can seek their market value from other employers. Employers seek the lowest cost of labor for the skillset they are employing and employees seek the high price of labor for the skillset they provide. At the point where these two motivations intersect, you have employment.

[Landrover]

First off, I am anti-minimum wage at any level. But, you math is wrong. If that person made just one combo per hour then you would be close. But, there are many things that come into play that determines the cost/retail of that burger. Labor is a huge part of it but so are items such as fixed expenses, such as rent, advertising and admin cost. That worker might make 50 combos per hour, thereby spreading out the increase of cost. It comes to an additional $.15 per combo. I also see the number of hours/employees being reduced to keep the wage expense reasonable. Of course, less employees means reduced service but all fast food places would be in the same boat and same playing field.

While I agree that increasing minimum wage will make all items more expensive, it is not the killer of small business that this chinese flu is.

Well put! [emoji108]
And yes, I have a undergrad in Ag Econ and Masters in Agribusiness.......as if that really matters.[emoji1787] But, I now own restaurants and have 36 employees and growing. Will it be a transformative event, YES! Are we ready, absolutely [emoji817]........with our long standing bonus system we are pretty dang close to that mark already.......thus our very low turnover rates. In addition our upcoming locales are needing minimum employees based on multiple innovations and the technology we use everyday. I will pass on pulling my hair out and screaming [emoji33]. Time to pivot and continue to WIN, that's just how I was trained. My labor, COGS, utilities, security, etc will be affected but that is my job to make them desirable as a entrepreneur. [emoji106]

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[kurt68]

Well put! [emoji108]
And yes, I have a undergrad in Ag Econ and Masters in Agribusiness.......as if that really matters.[emoji1787] But, I now own restaurants and have 36 employees and growing. Will it be a transformative event, YES! Are we ready, absolutely [emoji817]........with our long standing bonus system we are pretty dang close to that mark already.......thus our very low turnover rates. In addition our upcoming locales are needing minimum employees based on multiple innovations and the technology we use everyday. I will pass on pulling my hair out and screaming [emoji33]. Time to pivot and continue to WIN, that's just how I was trained. My labor, COGS, utilities, security, etc will be affected but that is my job to make them desirable as a entrepreneur. [emoji106]

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Oscar, can you share with me the names of your restaurants if they are local in Spring. You will have my support.

[Russ79]

One of the reasons he is going to push this is to help his union friends and support. As soon as the minimum wage goes to $15 all union contracts will have to renegotiated because the benchmark wage they start with has now gone up.

[Let's go Brandon!]

One of the reasons he is going to push this is to help his union friends and support. As soon as the minimum wage goes to $15 all union contracts will have to renegotiated because the benchmark wage they start with has now gone up.

Right along with dues <cough>democratcampaigncontributions <cough>

[texansfan]

It says everything about the employee. If the employee had a set of skills that the market valued above $9/hr then the employee would seek employment elsewhere. This is not slave labor. Employees can seek their market value from other employers. Employers seek the lowest cost of labor for the skillset they are employing and employees seek the high price of labor for the skillset they provide. At the point where these two motivations intersect, you have employment.

LoL
That means you're not expecting your employee to improve YOY if they are stuck in that state.
Think about it, what type of business would you be running where am employee can be with you for 10 years and so be making less than $10 per hour?

Even if they worked at a hand car wash they need to be running the place and you should be paying them more than $15 an hour because they are worth more to you than that.
At 10 years shouldn't they be like family?
If not a very good friend.

Again, it says a lot about you all here.
You think you're better than but this is actually showing how little you care for the next person.

[texansfan]

Well put! [emoji108]
And yes, I have a undergrad in Ag Econ and Masters in Agribusiness.......as if that really matters.[emoji1787] But, I now own restaurants and have 36 employees and growing. Will it be a transformative event, YES! Are we ready, absolutely [emoji817]........with our long standing bonus system we are pretty dang close to that mark already.......thus our very low turnover rates. In addition our upcoming locales are needing minimum employees based on multiple innovations and the technology we use everyday. I will pass on pulling my hair out and screaming [emoji33]. Time to pivot and continue to WIN, that's just how I was trained. My labor, COGS, utilities, security, etc will be affected but that is my job to make them desirable as a entrepreneur. [emoji106]

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I thought about you the other day.
I drove by your old location on Gessner/Richmond and forgot you weren't there anymore.
Still that daiquiri place.

[texansfan]

Oscar, can you share with me the names of your restaurants if they are local in Spring. You will have my support.

Bonfire Wings
He has a location on 45 right in front of the Walmart
Next to the at&t store
It's the Walmart near West Rd exit on 45
Across from the high school

[texansfan]

One of the reasons he is going to push this is to help his union friends and support. As soon as the minimum wage goes to $15 all union contracts will have to renegotiated because the benchmark wage they start with has now gone up.

What unions are less than $15 starting?
And yes, Marty did wonders for Boston.

[ateague11]

Here are my thoughts. I don't agree with any minimum wage especially one as high as $15 per hour. All employers should have the right to pay an employee what they wish. Let the job and society dictate the jobs hourly rate. For example. If McDonald's tried to hire employees at $2.00 an hour do you think anyone would work there? No! They would have to raise the rate until it becomes appealing to workers. The employees willingness to work at a specific pay rate and competition between other food chains would ensure the rates are not too low or too high