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(NPR)   Recount requested after SeaTac, Washington voters approve minimum wage of $15 an hour. Well, that's what happens when you get vote counters who are only paid $8.25 an hour   (npr.org) divider line 14
    More: Followup, Seatac, Seattle-Tacoma International Airport, best value, Alaska Airlines  
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3692 clicks; posted to Politics » on 28 Nov 2013 at 2:54 PM (34 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



Voting Results (Funniest)
View Voting Results: Smartest and Funniest

2013-11-28 04:04:11 PM
11 votes:
I hope this doesn't cause shops and restaurants in airports to charge a lot more than those elsewhere.
2013-11-29 11:06:25 AM
2 votes:

dangelder: In July 2007, the federal minimum was $5.15. In July 2009 it was $7.25, a jump of 41% in just two years. I don't recall any serious economic trouble during that time period.


Well there was no major economic turmoil after that minimum wage increase, or after the one before that, or the one before that, or the one before that but the next minimum wage increase will definitely cause the US economy to collapse into a dystopian hellhole. The GOP mouthbreathing economic prognosticators will finally be right this time
2013-11-28 05:19:04 PM
2 votes:

super_grass: $15 minimum wage? Good luck with that. $10 is okay, but I can see businesses moving out of the suburb at $15.

Guess we have to wait and see on this one.


Those airports relocate in a heartbeat
2013-11-28 03:33:33 PM
2 votes:

neilbradley: I remember being paid $3.25/hr for my first job in 1985. That rate today is around $7.80/hr. So they're getting more than double the rate of inflation.


Oooooooh, this one is good.
2013-11-29 05:12:03 AM
1 votes:

Unemployedingreenland: I have a small business and employ about 35 part timers - all college and high school students.  We pay about 15% above minimum wage because I don't want to compete with McD's for my labor pool.  We have no direct competition in the area (we are a particular kind of family amusement business), but there is plenty of indirect competition - everything from other venue based entertainment options - bowling, movies, etc. - to gaming systems, Netflix, etc, to just hanging out at someone's house.  Labor is my single largest expense, and eats approx 35% of revenue.  We are also significantly more labor intensive than my indirect competitors.  Our margins are OK (15%-20%) - not great, but so long as we have a sufficient level of revenue, I can make a decent living for me and my family.

In my state, there is talk of raising the minimum wage to about $13/hr, which would increase my labor costs 50%+.  Regardless of business acumen, there's simply no way to pass that additional cost on to my customers.  We have particular "sticky" price points - $19.99 (no really), and $199.99 (again, really).  No matter how we sell, bundle or package things, once the cost per person hits $20 (or the cost per party/group/event hits $200), we see a significant dropoff in sales.  In other words, people seem to be ok with spending less than $20/$200, but there's a widely-held understanding that $20+/$200+ is too much and there's a visceral aversion to spending that much or more on what we offer.

So if my labor costs increase 50%, my margins go negative unless I can somehow overcome this $20/$200 issue (and we've been doing this long enough to understand that there's no handy solution) or reduce my headcount/make my business less labor intensive.  Since every employee is integral to our customer service, reducing headcount is certain to decrease customer satisfaction, which, all things being equal, impacts sales.

Simply put, we are a business that cannot survive a large spike in the minimum wage ...



Have you considered calculating the basic fact that an increased minimum wage means more disposable income which means increased customers/sales for your amusement business? You are not a fixed/essential service so you can only profit when people have left over money to spend on you after they have paid all their bills. In other words, you WANT wages to go up. You NEED wages to go up. If wages don't go up, there will be nobody around with any money to spend on your recreation.
2013-11-29 12:22:46 AM
1 votes:

aneki: And who in their right mind would want to put up with all the headaches of owning a business for minimum wage?


memecrunch.com

Won't somebody think of the poor franchise owners???
2013-11-28 10:57:18 PM
1 votes:

BMulligan: There's a chain of burger joints here in Seattle which starts their employees at $10.25/hour, which is substantially less than $15 of course (although well above the minimum wage), but they also provide 100% employer paid health insurance, child care assistance of up to $8,000/year, and college tuition assistance of up to $5,500/year. They've been in business for over 50 years, and the family that owns the company lives quite well. It is possible to treat employees like human beings and still make a reasonable profit.


In other words, anti-living wage people:

Eat a bag of Dicks.
2013-11-28 07:08:55 PM
1 votes:
Teresaol31: BlastYoBoots: Mr. Eugenides: The market is what the market is.  You cannot legislate the market to behave the way you want any more than you can legislate the tide to come in at a different time.  It's childish magical thinking to believe otherwise.

This reminds me of a quote!

"While the earnings of a minority are growing exponentially, so too is the gap separating the majority from the prosperity enjoyed by those happy few. This imbalance is the result of ideologies which defend the absolute autonomy of the marketplace and financial speculation. Consequently, they reject the right of states, charged with vigilance for the common good, to exercise any form of control. A new tyranny is thus born, invisible and often virtual, which unilaterally and relentlessly imposes its own laws and rules. ... In this system, which tends to devour everything which stands in the way of increased profits, whatever is fragile, like the environment, is defenseless before the interests of a deified market, which become the only rule."

 - Pope "Goddamn" Francis Rand Paul

I was raised evangelical (Baptist) and consider myself an atheist, but I am warming up to this Pope the more I hear from him.  While I can not see myself converting, I have to give him credit for taking my view of the Church up a notch or two.  Certainly a more compassionate and reasonable man than his predecessor who looked and sounded like Darth Cheney's long lost brother.
2013-11-28 07:05:32 PM
1 votes:

Zeb Hesselgresser: "The best way to sabotage chances for upward mobility of a youngster from a single-parent household, who resides in a violent slum and has attended poor-quality schools is to make it unprofitable for any employer to hire him. The way to accomplish that is to mandate an employer to pay such a person a wage that exceeds his skill level."              - Dr. Williams


"Conservatives say if you don't give the rich more money, they will lose their incentive to invest. As for the poor, they tell us they've lost all incentive because we've given them too much money."
―  George Carlin
2013-11-28 06:27:57 PM
1 votes:
This will surely end well

Why stop at $15 an hour?  Why not $100 an hr? There's absolutely zero downside to forcing companies to overpay for labor.

/sarcasm
2013-11-28 06:16:00 PM
1 votes:

Mr. Eugenides: whidbey: OK I predict this thread is going to be about "oh the poor poor employers who have to cough up extra $$$ that takes away from their PROFITS."

*read in a Ferengi voice*

If there is no profit, why am I investing all my money and 80 hours of my time per week?

So I'm assuming you feel that a business owner is entitled to some return on investment if not, well then you're an uneducatable semi literate child and should hold your tongue while the adults speak.

That said, if labor costs are 40% of expenses and they double then there simply won't be any profits.


If labor costs are half of expanses, and they double, that tells us nothing about how much profit is left, because you've told us nothing about what percentage of your revenue your expenses are.

And if labor costs are 40% of your revenue, and you aren't a high end consultancy, then you suck at business and deserve to close. I can't even conceive of a business that both employs minimum wage workers and has 40% of revenue tied up in labor cost.
2013-11-28 04:56:06 PM
1 votes:

neilbradley: I remember being paid $3.25/hr for my first job in 1985. That rate today is around $7.80/hr. So they're getting more than double the rate of inflation.


But gold in 1985 was less than $327/oz

Today it's $1240/oz.  Therefore your $3.25 1985 in gold should  $12.95 now,  so $15 is just 25% more than inflation
2013-11-28 03:59:15 PM
1 votes:

Prophet of Loss: Mr. Eugenides: whidbey: OK I predict this thread is going to be about "oh the poor poor employers who have to cough up extra $$$ that takes away from their PROFITS."

*read in a Ferengi voice*

If there is no profit, why am I investing all my money and 80 hours of my time per week?

So I'm assuming you feel that a business owner is entitled to some return on investment if not, well then you're an uneducatable semi literate child and should hold your tongue while the adults speak.

That said, if labor costs are 40% of expenses and they double then there simply won't be any profits.

1. We are talking about minimum wage, so its service jobs.

2. You can raise prices. Your competition is in the same boat and under the same pressures as you.

If your business acumen is so weak you can't pay a living wage and stay in business then maybe you should do something else and leave running a successful business to 'the adults'.


No one has mentioned price or income elasticity of demand yet, so I'll just assume this will be another Ferengi vs. Commie argument.

*whistles*
*twiddles thumbs*
*feels superior*
2013-11-28 02:56:13 PM
1 votes:
OK I predict this thread is going to be about "oh the poor poor employers who have to cough up extra $$$ that takes away from their PROFITS."

*read in a Ferengi voice*
 
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