AI
Thursday, September 14, 2017 8:18:20 AM
So you think the 15 year old junior high school kid who gets his first job at a restaurant is worth $15 an hour?
Seattle’s new $15 minimum wage, although not yet in effect, is already creating heartburn for area foodies who have apparently noticed many of their favorite city eateries shutting down.
Although there are various factors in play, and the restaurant industry has a high failure rate even under the best of circumstances, the April 1 minimum wage hike appears to be one of them.
The government-imposed minimum was designed as an entry level pay grade rather than an endpoint. In the normal course of things, minimum wage employees — and this usually applies to a younger cohort — pick up new skills and get promoted to higher paying positions or land at another company that offers better opportunities.
Seattle’s $15 minimum wage law is supposed to lift workers out of poverty and move them off public assistance. But there may be a hitch in the plan.
Evidence is surfacing that some workers are asking their bosses for fewer hours as their wages rise – in a bid to keep overall income down so they don’t lose public subsidies for things like food, child care and rent.
Full Life Care, a home nursing nonprofit, told KIRO-TV in Seattle that several workers want to work less.
“If they cut down their hours to stay on those subsidies because the $15 per hour minimum wage didn’t actually help get them out of poverty, all you’ve done is put a burden on the business and given false hope to a lot of people,” said Jason Rantz, host of the Jason Rantz show on 97.3 KIRO-FM.
15 Problems With Raising The Minimum Wage To $15
1) The first minimum wage in 1938 cost between 30,000 and 50,000 jobs.
2) It forces low-skilled people out of jobs, when employers won’t pay $15 to an unqualified worker. If employers are going to pay $15 an hour, they want someone who does a job worth that wage.
3) High-skilled workers who are worth $15 an hour are already employed at jobs that are paid $15 an hour.
4) Businesses would have to charge higher prices to account for rising employment costs, as has been seen in places that already have a high minimum wage.
5) The lower income people who are the ones earning minimum wage would be the ones hurt most by price inflation due to higher minimum wage.
6) Employers would be less likely or less able to offer fringe benefits to their employees, such as time off, sick pay, etc.
7) Empirical research over the past 70 years shows that minimum wage increases tend to reduce employment.
8) Business owners would be less inclined to grow their small businesses, since they would have to pay an employee so high a wage.
9) Teenagers would lose these low-skill, low-pay jobs that help them gain experience for future jobs and activities.
10) Teen crime rate increases as teen unemployment increases, since teens have more free time and less money. This mirrors what happens when students are not in school.
11) People would be less motivated towards higher education if you could make $15 at a low skilled job. Why pay for an expensive education when you could make $15 an hour without one?
12) Increasing minimum wage increases job turnover.
13) This would encourage employers to hire illegal immigrants who they would not have to pay minimum wage, as they are not on official payrolls.
14) A high minimum wage encourages employers to install labor-saving devices and machines to replace expensive employees.
15) Many poor Americans do not work; therefore raising the minimum wage does not help them. It does not put more money in their pocket, and actually hurts them by increasing prices across the market.
The Problem with a $15 Minimum Wage in America An Express Employment Professionals White Paper
http://futurefemaleleader.com/15-problems-with-15-minimum-wage/
http://www.foxnews.com/politics/2015/07/22/seattle-sees-fallout-from-15-minimum-wage-as-other-cities-follow-suit.html
Watch out, the robots are coming!
Former McDonald’s CEO Says $35K Robots Cheaper Than Hiring At $15 Per Hour
“I was at the National Restaurant Show yesterday and if you look at the robotic devices that are coming into the restaurant industry — it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries — it’s nonsense and it’s very destructive and it’s inflationary and it’s going to cause a job loss across this country like you’re not going to believe,” said former McDonald’s (MCD) USA CEO Ed Rensi during an interview on the FOX Business Network’s Mornings with Maria.
He doubled down on his argument by suggesting a new wage system entirely:
“I think we ought to have a multi-faceted wage program in this country. If you’re a high school kid, you ought to have a student wage. If you’re an entry level worker you ought to have a separate wage. The states ought to manage this because they know more [about] what’s going on the ground than anybody in Washington D.C.,” he said.
https://postgradproblems.com/former-mcdonalds-ceo-says-35k-robots-cheaper-than-hiring-at-15-per-hour/
Seattle’s new $15 minimum wage, although not yet in effect, is already creating heartburn for area foodies who have apparently noticed many of their favorite city eateries shutting down.
Although there are various factors in play, and the restaurant industry has a high failure rate even under the best of circumstances, the April 1 minimum wage hike appears to be one of them.
The government-imposed minimum was designed as an entry level pay grade rather than an endpoint. In the normal course of things, minimum wage employees — and this usually applies to a younger cohort — pick up new skills and get promoted to higher paying positions or land at another company that offers better opportunities.
Seattle’s $15 minimum wage law is supposed to lift workers out of poverty and move them off public assistance. But there may be a hitch in the plan.
Evidence is surfacing that some workers are asking their bosses for fewer hours as their wages rise – in a bid to keep overall income down so they don’t lose public subsidies for things like food, child care and rent.
Full Life Care, a home nursing nonprofit, told KIRO-TV in Seattle that several workers want to work less.
“If they cut down their hours to stay on those subsidies because the $15 per hour minimum wage didn’t actually help get them out of poverty, all you’ve done is put a burden on the business and given false hope to a lot of people,” said Jason Rantz, host of the Jason Rantz show on 97.3 KIRO-FM.
15 Problems With Raising The Minimum Wage To $15
1) The first minimum wage in 1938 cost between 30,000 and 50,000 jobs.
2) It forces low-skilled people out of jobs, when employers won’t pay $15 to an unqualified worker. If employers are going to pay $15 an hour, they want someone who does a job worth that wage.
3) High-skilled workers who are worth $15 an hour are already employed at jobs that are paid $15 an hour.
4) Businesses would have to charge higher prices to account for rising employment costs, as has been seen in places that already have a high minimum wage.
5) The lower income people who are the ones earning minimum wage would be the ones hurt most by price inflation due to higher minimum wage.
6) Employers would be less likely or less able to offer fringe benefits to their employees, such as time off, sick pay, etc.
7) Empirical research over the past 70 years shows that minimum wage increases tend to reduce employment.
8) Business owners would be less inclined to grow their small businesses, since they would have to pay an employee so high a wage.
9) Teenagers would lose these low-skill, low-pay jobs that help them gain experience for future jobs and activities.
10) Teen crime rate increases as teen unemployment increases, since teens have more free time and less money. This mirrors what happens when students are not in school.
11) People would be less motivated towards higher education if you could make $15 at a low skilled job. Why pay for an expensive education when you could make $15 an hour without one?
12) Increasing minimum wage increases job turnover.
13) This would encourage employers to hire illegal immigrants who they would not have to pay minimum wage, as they are not on official payrolls.
14) A high minimum wage encourages employers to install labor-saving devices and machines to replace expensive employees.
15) Many poor Americans do not work; therefore raising the minimum wage does not help them. It does not put more money in their pocket, and actually hurts them by increasing prices across the market.
The Problem with a $15 Minimum Wage in America An Express Employment Professionals White Paper
http://futurefemaleleader.com/15-problems-with-15-minimum-wage/
http://www.foxnews.com/politics/2015/07/22/seattle-sees-fallout-from-15-minimum-wage-as-other-cities-follow-suit.html
Watch out, the robots are coming!
Former McDonald’s CEO Says $35K Robots Cheaper Than Hiring At $15 Per Hour
“I was at the National Restaurant Show yesterday and if you look at the robotic devices that are coming into the restaurant industry — it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries — it’s nonsense and it’s very destructive and it’s inflationary and it’s going to cause a job loss across this country like you’re not going to believe,” said former McDonald’s (MCD) USA CEO Ed Rensi during an interview on the FOX Business Network’s Mornings with Maria.
He doubled down on his argument by suggesting a new wage system entirely:
“I think we ought to have a multi-faceted wage program in this country. If you’re a high school kid, you ought to have a student wage. If you’re an entry level worker you ought to have a separate wage. The states ought to manage this because they know more [about] what’s going on the ground than anybody in Washington D.C.,” he said.
https://postgradproblems.com/former-mcdonalds-ceo-says-35k-robots-cheaper-than-hiring-at-15-per-hour/
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