So you’re offering to pay for the food yourself, instead of paying half and having taxpayers pay the rest through food stamps, medicaid and other welfare?
The assertion that raising the minimum wage leads to layoffs is a myth. It was never supported by any data; merely theorized. It has become one of those axioms accepted as “common knowledge” much like the early belief that the sun revolved around the Earth.
“Between January and December of 2014, while Seatac’s business owners (and their customers) were absorbing the cost of paying minimum wage employees $15, unemployment decreased 17.46%, falling from 6.3% to 5.2%. It turns out that you CAN increase the minimum wage (even in large increments) and increase overall employment at the same time.” from Forbes Magazine (http://www.forbes.com/sites/timworstall/2015/03/16/we-are-seeing-the-effects-of-seattles-15-an-hour-minimum-wage/#f0748d7715aa)
“Myth: Increasing the minimum wage is bad for businesses.
Not true: Academic research has shown that higher wages sharply reduce employee turnover which can reduce employment and training costs.
Myth: Increasing the minimum wage is bad for the economy.
Not true: Since 1938, the federal minimum wage has been increased 22 times. For more than 75 years, real GDP per capita has steadily increased, even when the minimum wage has been raised.
Myth: The federal minimum wage goes up automatically as prices increase.
Not true: While some states have enacted rules in recent years triggering automatic increases in their minimum wages to help them keep up with inflation, the federal minimum wage does not operate in the same manner. An increase in the federal minimum wage requires approval by Congress and the president. However, in his call to gradually increase the current federal minimum, President Obama has also called for it to adjust automatically with inflation. Eliminating the requirement of formal congressional action would likely reduce the amount of time between increases, and better help low-income families keep up with rising prices." U.S. Department of Labor (https://www.dol.gov/featured/minimum-wage/mythbuster)
Conservatives repeat the same mantra despite the fact that the data doesn’t back up the theory.
The final argument is the math. If I have 10 workers, and I raise their wages from $10 an hour to $15 an hour, I’ll need another $5 an hour each, or $2,000 in more revenues each 40 hour work week, to pay for that raise. If there is no $2,000 per week in more revenue, I’ll have to cut cost, and the most likely way I’ll do that is by reducing the number of workers I have to pay. So, yes, a significant raise will produce layoffs.
Minimum wage increases are easy to study (since you can find towns basically across the river from each other where one gets a raise and the other doesn’t when one state raises the minimum wage). Jobs do not evaporate, but people get off welfare and economies improve. If you believe the conservative schtick on this, you have to assume that all companies currently have more employees than they need, and can easily lay them off and still stay in business. That’s a really dumb assumption.
Where I live a full-time job at $10/hour is more than enough for a single person to pay the bills and have enough for luxuries. In the Northeast and Left Coast, that is not so true. But remember, entry level is just that – if you do a good job and stick around, you get raises. Of course when the $15 kicks in, those receiving government benefits will simply cut their hours so they don’t lose their ‘benefits.’ I guess they will have more time to pursue art, as Nancy Pelosi would say.
The labor market is more complicated than a single business model. The labor market is in constant flux with or without wage manipulations. Most important, workers have varying skill levels. Studies show that as wages rise, geography and age comes in to play for jobs lost and gained. Overall jobs are created at a net gain when wages are increased. The lower-skilled, young and old employees might not fare as well, depending on the location of the business.
Everybody says raising the minimum wage will cause layoffs. I’ve been in the work force for almost 50 years and I have seen the minimum wage go up several times and have never once seen these layoffs they talk about. What world is this happening in?
braindead Premium Member about 8 years ago
Right.
There were never any layoffs before that darn $15 minimum was proposed.
Michael Peterson Premium Member about 8 years ago
So you’re offering to pay for the food yourself, instead of paying half and having taxpayers pay the rest through food stamps, medicaid and other welfare?
Darsan54 Premium Member about 8 years ago
For all the promises of jobs if only industries get more tax cuts, the only aspect which seems to rise is executive’s bonus checks.
DAngelo136 about 8 years ago
The assertion that raising the minimum wage leads to layoffs is a myth. It was never supported by any data; merely theorized. It has become one of those axioms accepted as “common knowledge” much like the early belief that the sun revolved around the Earth.
“Between January and December of 2014, while Seatac’s business owners (and their customers) were absorbing the cost of paying minimum wage employees $15, unemployment decreased 17.46%, falling from 6.3% to 5.2%. It turns out that you CAN increase the minimum wage (even in large increments) and increase overall employment at the same time.” from Forbes Magazine (http://www.forbes.com/sites/timworstall/2015/03/16/we-are-seeing-the-effects-of-seattles-15-an-hour-minimum-wage/#f0748d7715aa)
“Myth: Increasing the minimum wage is bad for businesses.
Not true: Academic research has shown that higher wages sharply reduce employee turnover which can reduce employment and training costs.
Myth: Increasing the minimum wage is bad for the economy.
Not true: Since 1938, the federal minimum wage has been increased 22 times. For more than 75 years, real GDP per capita has steadily increased, even when the minimum wage has been raised.
Myth: The federal minimum wage goes up automatically as prices increase.
Not true: While some states have enacted rules in recent years triggering automatic increases in their minimum wages to help them keep up with inflation, the federal minimum wage does not operate in the same manner. An increase in the federal minimum wage requires approval by Congress and the president. However, in his call to gradually increase the current federal minimum, President Obama has also called for it to adjust automatically with inflation. Eliminating the requirement of formal congressional action would likely reduce the amount of time between increases, and better help low-income families keep up with rising prices." U.S. Department of Labor (https://www.dol.gov/featured/minimum-wage/mythbuster)
Conservatives repeat the same mantra despite the fact that the data doesn’t back up the theory.
Holden Awn about 8 years ago
The final argument is the math. If I have 10 workers, and I raise their wages from $10 an hour to $15 an hour, I’ll need another $5 an hour each, or $2,000 in more revenues each 40 hour work week, to pay for that raise. If there is no $2,000 per week in more revenue, I’ll have to cut cost, and the most likely way I’ll do that is by reducing the number of workers I have to pay. So, yes, a significant raise will produce layoffs.
TomGn about 8 years ago
What happened to entry level jobs
Nebulous Premium Member about 8 years ago
McD’s CEO just got his pay TRIPLED.But the guy working the counter still can’t afford to supersize his Happy Meal.
ARodney about 8 years ago
Minimum wage increases are easy to study (since you can find towns basically across the river from each other where one gets a raise and the other doesn’t when one state raises the minimum wage). Jobs do not evaporate, but people get off welfare and economies improve. If you believe the conservative schtick on this, you have to assume that all companies currently have more employees than they need, and can easily lay them off and still stay in business. That’s a really dumb assumption.
superposition about 8 years ago
http://mynorthwest.com/91276/fact-check-is-15-minimum-wage-really-killing-seattle-jobs/
Squirrelchaser about 8 years ago
Where I live a full-time job at $10/hour is more than enough for a single person to pay the bills and have enough for luxuries. In the Northeast and Left Coast, that is not so true. But remember, entry level is just that – if you do a good job and stick around, you get raises. Of course when the $15 kicks in, those receiving government benefits will simply cut their hours so they don’t lose their ‘benefits.’ I guess they will have more time to pursue art, as Nancy Pelosi would say.
Mr. Blawt about 8 years ago
The labor market is more complicated than a single business model. The labor market is in constant flux with or without wage manipulations. Most important, workers have varying skill levels. Studies show that as wages rise, geography and age comes in to play for jobs lost and gained. Overall jobs are created at a net gain when wages are increased. The lower-skilled, young and old employees might not fare as well, depending on the location of the business.
eremite about 8 years ago
Why do we think profit is constant?
than revenue must go up
Which it does, because businesses can have more customers (higher demand) not just (higher prices)
or expenditures must go down
More efficient use of time, labor-saving machinery, etc, not just….(layoffs).
Thakns, tom, for explicitly stating the big three hidden—and flawed—economic assumptions behind right-wing opposition to minimum wage increases.
superposition about 8 years ago
For along time wages and profits were parallel tracks … then, neoliberalism strikes again.
Lyman Elliott Premium Member about 8 years ago
Everybody says raising the minimum wage will cause layoffs. I’ve been in the work force for almost 50 years and I have seen the minimum wage go up several times and have never once seen these layoffs they talk about. What world is this happening in?
Dave Ferro about 8 years ago
No, they’re too stupid to realize that.