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$15 Minimum Wage Causes Seattle Restaurants To Suffer Worse Job Loss Since Great Rece

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$15 Minimum Wage Causes Seattle Restaurants To Suffer Worse Job Loss Since Great Recession

Screen Shot 2015-08-10 at 9.45.20 PM

We told them, but did they listen? No.

Via Daily Caller:

According to a report released Sunday by the American Enterprise Institute (AEI), the $15 minimum wage has caused Seattle restaurants to lose 1,000 jobs — the worst decline since the 2009 Great Recession.

“The loss of 1,000 restaurant jobs in May following the minimum wage increase in April was the largest one month job decline since a 1,300 drop in January 2009, again during the Great Recession,” AEI Scholar Mark J. Perry noted in the report.

The citywide minimum wage increase was passed in June of last year. The measure is designed to increase the city minimum wage gradually to $15 an hour by 2017. The first increase under the plan was to $11 an hour in April. According to the report, Seattle restaurants have already faced severe consequences as a result. In contrast, in the six years since the 2009 financial crisis, the industry has been recovering in areas without the $15 minimum wage.
 
Not to worry, I'm sure the brain-trust behind raising the minimum wage will "fix" it. All they have to do is raise the minimum wage to $22 and hour and mandate that all employees work half as many hours as they currently do at $11 and hour.

See? That puts everyone back to work. Easy-peasy!
 
Minimum wage exists to increase the pay of government workers. If the government clerk makes $15 an hour, then the burger flipper doubles his pay to 15, the clerk demands 30.
 
There are more people now free to pursue what they really wanted to do before they were roped in by the wily evil Capitalist fast food industry recruiters who lied to them about the pay, job and working conditions while holding them hostage to the company store and those that are still working are very, very happy to be earning more take-home than the business owner, because, the business owner always voluntarily eats any increases, because you know, economics 101, you cannot raise prices because demand falls off.

Every one except idiots knows that, and by idiots, of course we refer to the economically illiterate right-wingnuts.


:cool:
 
Since you're going to deal with anecdotal evidence and laser focus on restaurants I'll just drop this right here.

Link

In January, the town of Seatac, Washington, put in to effect a new $15 per hour Minimum Wage. No ramp ups, no tiered implementation. One day it was the state standard, the next, the highest minimum wage in the nation. The Koch Brothers sank a fortune to fight this measure, which fell on deaf ears as the town rejected their trickle-down theories and instead voted for the measure. The result is that for one town, they became a test bed, to put the theories behind trickle-down economics to the test.

Now, nine months on, we are witnessing one of the most dramatic recoveries in the Pacific Northwest.

Last July, business owner Scott Ostrander claimed that the increased wage would force him to lay off staff, if not shut down his businesses. Instead, his business, the Cedarbrook Lodge hotel, is expanding, adding 63 more beds to meet demand. Instead of layoffs, he needs to hire more people. And his story is not the only one.

Tom Douglas, who runs fifteen restaurants in the Seattle area, warned that a higher minimum wage law being considered by Seattle would force the shutdown of a quarter of his restaurants. Instead, after the results in Seatac, he is opening five new restaurants to meet demand. And this story is being repeated, over and over again, throughout the region.

Well paid employees pump money in to the local economies. This is basic economics, dating back to Adam Smith.
...
They forgot the words of wisdom from President Franklin D. Roosevelt, in an address given in Cleveland, Ohio on October 16, 1936.

It is to the real advantage of every producer, every manufacturer and every merchant to cooperate in the improvement of working conditions, because the best customer of American industry is the well-paid worker.
 
NeverEndingMe said:
only by working hard can one achieve min wage
Click to expand...

Uh, Jen, minimum wage is an entry level wage that is paid to someone just hired to give them the opportunity to prove they can work hard and add value to the business with their labor. In fact, it takes 30-90 days to actually earn minimum wage and after you do, once that probationary period if over, an employer will then give you more money to retain your newly acquired skills and productivity.
 
JAMESBJOHNSON said:
Minimum wage exists to increase the pay of government workers. If the government clerk makes $15 an hour, then the burger flipper doubles his pay to 15, the clerk demands 30.
Click to expand...

You're half right. Increases in minimum wage is nothing more than the government giving itself a raise in the form of payroll taxes (the most repressive tax of all), and gross receipts tax revenues. All in the name of being "for the people."

Ishmael
 
Ulaven_Demorte said:
Since you're going to deal with anecdotal evidence and laser focus on restaurants I'll just drop this right here.

Link

In January, the town of Seatac, Washington, put in to effect a new $15 per hour Minimum Wage. No ramp ups, no tiered implementation. One day it was the state standard, the next, the highest minimum wage in the nation. The Koch Brothers sank a fortune to fight this measure, which fell on deaf ears as the town rejected their trickle-down theories and instead voted for the measure. The result is that for one town, they became a test bed, to put the theories behind trickle-down economics to the test.

Now, nine months on, we are witnessing one of the most dramatic recoveries in the Pacific Northwest.

Last July, business owner Scott Ostrander claimed that the increased wage would force him to lay off staff, if not shut down his businesses. Instead, his business, the Cedarbrook Lodge hotel, is expanding, adding 63 more beds to meet demand. Instead of layoffs, he needs to hire more people. And his story is not the only one.

Tom Douglas, who runs fifteen restaurants in the Seattle area, warned that a higher minimum wage law being considered by Seattle would force the shutdown of a quarter of his restaurants. Instead, after the results in Seatac, he is opening five new restaurants to meet demand. And this story is being repeated, over and over again, throughout the region.

Well paid employees pump money in to the local economies. This is basic economics, dating back to Adam Smith.
...
They forgot the words of wisdom from President Franklin D. Roosevelt, in an address given in Cleveland, Ohio on October 16, 1936.

It is to the real advantage of every producer, every manufacturer and every merchant to cooperate in the improvement of working conditions, because the best customer of American industry is the well-paid worker.
Click to expand...
.

1) The OP is not "anecdotal" it is an actual count of actual job losses.

2) Your post is anecdotal. Who knows what the reasons were for those particular success stories.

3) Saying "the story is being repeated over and over again" is fluff.

4) Your anecdotes are past their sell by date. The effect of a dumb idea like raising minimum wage overnight takes a bit to wreak havoc. Companies scramble to cut other costs, see if they increase productivity with better workers, see if better workers can improve customer satisfaction, see if any of that translates to better volume from the same number of employees, same production from less employees, or higher prices accepted by consumers. The OP is that result almost a year after your anecdotes.

One of the highest costs for a restaurant is labor. Dramatically increasing that has consequences. If there was some hidden margin to cover these increased costs, the businesses would have already been lowering prices to increase market share or raising prices if there was room in customer demand.
 
Yardley said:
.

1) The OP is not "anecdotal" it is an actual count of actual job losses.

2) Your post is anecdotal. Who knows what the reasons were for those particular success stories.

3) Saying "the story is being repeated over and over again" is fluff.

4) Your anecdotes are past their sell by date. The effect of a dumb idea like raising minimum wage overnight takes a bit to wreak havoc. Companies scramble to cut other costs, see if they increase productivity with better workers, see if better workers can improve customer satisfaction, see if any of that translates to better volume from the same number of employees, same production from less employees, or higher prices accepted by consumers. The OP is that result almost a year after your anecdotes.

One of the highest costs for a restaurant is labor. Dramatically increasing that has consequences. If there was some hidden margin to cover these increased costs, the businesses would have already been lowering prices to increase market share or raising prices if there was room in customer demand.
Click to expand...

*chuckle*

:cool:

Your economic lesson is being met with anguished thoughts like, "That's not true! Bastiat is an idiot, von Mises has been debunked, we have the internet, we're evolved and the laws of Sociology and Economics evolved right along with us; you idiot right-wingers are living in the past! I live in the future!"
 
Yardley said:
.

1) The OP is not "anecdotal" it is an actual count of actual job losses.

2) Your post is anecdotal. Who knows what the reasons were for those particular success stories.

3) Saying "the story is being repeated over and over again" is fluff.

4) Your anecdotes are past their sell by date. The effect of a dumb idea like raising minimum wage overnight takes a bit to wreak havoc. Companies scramble to cut other costs, see if they increase productivity with better workers, see if better workers can improve customer satisfaction, see if any of that translates to better volume from the same number of employees, same production from less employees, or higher prices accepted by consumers. The OP is that result almost a year after your anecdotes.

One of the highest costs for a restaurant is labor. Dramatically increasing that has consequences. If there was some hidden margin to cover these increased costs, the businesses would have already been lowering prices to increase market share or raising prices if there was room in customer demand.
Click to expand...

The OP laser focused on restaurants.

The article I posted showed where not only are the restaurants in Seatac not losing jobs, they are expanding, along with the other businesses in the town. "Who knows" what caused it is disingenuous when you're so quick to blame the losses in the OP on the minimum wage hike.

Labor is also, by far, the one of largest expenses in the hotel and lodging industry business and despite the dire warnings, the lodge mentioned not only did not reduce staff, it is expanding and hiring.

Nine months isn't long enough for the dire consequences that the town was warned about to kick in? Three quarters of consistent growth despite the job killing nightmare that was promised? :rolleyes:
 
Instead of raising mon wage

Guv should raise IQ of most of the clowns in the US
 
miles said:
UD, shut the fuck up.
Click to expand...

Oh no, he is a valuable lesson on just how far out on a limb the Left will go in order to deny reality and science.

;)

What really want is for him to pop off even more.

Ask him to tell us why $15 an hour is a superior wage floor compared to $20 an hour, a much more livable wage for the darlings at the bottom, single moms, teens, minorities...

:cool:
 
4est_4est_Gump said:
Oh no, he is a valuable lesson on just how far out on a limb the Left will go in order to deny reality and science.

;)

What really want is for him to pop off even more.

Ask him to tell us why $15 an hour is a superior wage floor compared to $20 an hour, a much more livable wage for the darlings at the bottom, single moms, teens, minorities...

:cool:
Click to expand...

UD is a fucking toolbox.

$20 is slave labor. I say $45 is more like it.
 
Nothing at all disingenuous about it. An anecdote about two or three businesses could be the result of literally anything. For the entire sector of a local economy that is noted for having high proportion of their expenses to be labor costs to lose jobs in that number, there is no other rational explanation.

And yes nine months is a very short window, the majority of all new restaurants fail they fail within the first year but not within the first week the first month or even necessarily 9 months. We are not talking about newly started restaurants we are talking about established restaurants that have cleared that first year hurdle.
 
Last edited:
miles said:
UD is a fucking toolbox.

$20 is slave labor. I say $45 is more like it.
Click to expand...

Why do withhold from minorities that extra $5 that could make the difference between feeding their children or buying grams her medication?

Are you, or have you ever been, a Republican?

;) ;)
 
4est_4est_Gump said:
Oh no, he is a valuable lesson on just how far out on a limb the Left will go in order to deny reality and science.

;)

What really want is for him to pop off even more.

Ask him to tell us why $15 an hour is a superior wage floor compared to $20 an hour, a much more livable wage for the darlings at the bottom, single moms, teens, minorities...

:cool:
Click to expand...

I would answer if you were to ask an actual question.

Minimum wage should be tied to both the area's cost of living and the federal poverty line.

No worker with a full time job should earn wages that keep them below poverty levels.

An employer should not abuse the social welfare system in order to pay lower wages to it's employees. I'm looking at you Walmart, showing employees how to make up the difference in their low wages through government aid. Pathetic.

A single minimum wage worker who has worked continually for the federal minimum wage since 1968 has been deprived of over a quarter million dollars in wages over the course of those 45 years. $293,735.12 to be exact. The reason for these lost wages is simple: The minimum wage is not tied to inflation, which lowers its purchasing power every year. And far too many Congresses and presidents have failed to act to ensure that it increased with inflation since 1968. Today, the federal minimum wage stands at $7.25 per hour. Had it simply kept pace with inflation since 1968, it would be about $10.70 per hour.

So where did these billions of lost wages go? In the 45 years that the minimum wage has lost nearly one third of its value, the compensation of large corporations' CEOs has shot up through the roof, increasing over 900 percent. Large corporations and their executives have been benefiting from and taking advantage of cheap labor and have achieved windfall profits.
 
Que said:
Nothing at all disingenuous about it. An anecdote about two or three businesses could be the result of literally anything. For the entire sector of a local economy that is noted for having high proportion of their expenses to be labor costs to lose jobs in that number, there is no other rational explanation.

And yes nine months is a very short window, the majority of all new restaurants fail they fail within the first year but not within the first week the first month or even necessarily 9 months. We are not talking about newly started restaurants we are talking about established restaurants that have cleared that first year hurdle.
Click to expand...

Nine months is too short, but almost a year is more than enough. :rolleyes:

By the way, there's more than two or three businesses in Seatac, they're seeing across the board improvement. The article focused on the stories of those particular businesses because of statements from the owners before that ended up being completely and utterly wrong.

Much like you are.
 
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