If you still have a job, or are looking at “career opportunities” in fast food, the Minimum wage climbs 70 cents tomorrow to $7.25 per hour.
Of course, the Cato Institute will assign all jobs lost from this point forward to the rise in the minimum wage, the total disaster that the Shrubbery left behind will have nothing to do with it.
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7 comments
Hmmm…let’s see. Which contributes to the collapse of companies….$7.50/hr vs. $33,000/second.
Yeah…I can see where that $7.50/hr really weighs down a company’s opportunity to make a profit.
When things were humming along down here, the fast food places were paying over $7/hour for high school kids.
It’s another form of stimulus, because minimum wage people spend whatever they make – they don’t have much choice.
In-and-Out Burger here in CA starting pay is about $9/hr. If you are going to work the fast food fry line…that’s the one to work at.
To stimulate an economy, you want to give the folks who spend money…money in which to do just that. The Uberwealthy and all their tax breaks don’t do jack s**t. They hide behind the gated communities complaining about the rifraff who are scrubbing their toilets.
The second paragraph is the basic reason that tax cuts for the wealthy don’t work – they don’t risk their money, that’s how they got wealthy.
The put their money in T-bills and real assets, and they don’t spend as much as anyone who is “middle class” to live from day-to-day.
I worked for wealthy people, and they never pick up a check or carry cash. Most of them don’t even carry a wallet. They often don’t own the clothes they wear in public or the cars they drive. It is disgusting how much they are just given or loaned for an indefinite period.
I own and operate a franchised sandwich shop in the Chicago area. The minimum wage hike in IL has cost me over $50,000 per year in additional wages–for nothing additional–same amount of work but costs me $50k more a year. My franchise requires a lot of man-hours compared to some of our competition. To start out–think about that–because I employ a relatively large number of people I am at a disadvantage.
Now I know what you are thinking–you are rich and can afford it–I am not rich at all. We are struggling severely especially in this economic climate. Quite frankly my take-home pay is laughable considering the risks I’ve taken, the hours I work, and how good I am at my job–which is very good.
When the min. wage was $5.15 /hr we started people out at $6 /hr–that was considered good and at that time my full timers earned $12 /hr (or double the minimum wage). Now the min. wage is $8 /hr and guess what my full time people make now? $12 /hr–the same; however, prices everywhere around them have gone up. So not just the business owner gets squeezed folks. Believe me if I could increase the wage of my full timers I would. But the gov’t forced me to give raises to a bunch of 18-, 19-year-olds whom for most of them this is there first job and quite frankly they weren’t asking for a raise in the first place–I’ve never had a hard time hiring and retaining great part timers. But that guy/girl that stuck w/ the company for a couple years and began to climb up the ladder? Screw them! And they are getting screwed and most of them probably don’t know it.
On another note, $50,000 a year is a lot of money. Had I been able to retain those monies FY2007 would have been a good year and FY2008 wouldn’t have been a total nightmare. The point? That additional money could have enabled me to open up another location and grow my business or afford me a better chance at surviving this economic crisis. Either of which doesn’t result in lost jobs.
Now you say, “see the ‘rich’ are getting richer.” Well the idea in growing a business is usually to build wealth so generically speaking you’re correct. However, when I build these stores I am paying mostly union painters, carpenters, plumbers, architects, etc–all earn good livings. Also, 90% (believe it or not) of the equipment I purchase is manufactured in the US–and we buy a lot of equipment. Whats more, the truck driver that delivers our operating supplies once a week makes about $70,000/yr. Same with the supplier of our aprons, produce, and other services such as garbage, telecom, water, and power–all provide good or even great middle-class jobs.
My example is just one example. But imagine this happening on a macro-scale a million times over. RAISING THE MINIMUM WAGE NEGATIVELY IMPACTS THE MIDDLE CLASS FAR MORE THAN ANY GROUP. Overall, it is my belief that raising the minimum wage only benefits those who intend on staying on the minimum wage all of their lives.
On another note, $50,000 a year is a lot of money. Had I been able to retain those monies FY2007 would have been a good year and FY2008 wouldn’t have been a total nightmare. The point? That additional money could have enabled me to open up another location and grow my business or afford me a better chance at surviving this economic crisis.
which suggests you were never planning to give any of that $50,000 to your $12/hr workers as a raise.
.-= last blog ..Woman’s best friend’s best friend =-.
This sounds like a local issue, because the current Federal minimum wage as reached by 3 70¢/hour increases is $7.25, and out-sourcing has ensured that millions of Americans will never make more than minimum wage their entire working life.
When I starting working in 1964 the minimum wage was $1.25/hour. To have the same purchasing power today, the minimum would have to exceed $10/hour.
If people don’t make a decent wage, they can’t buy your sandwiches. Henry Ford knew that, and paid his workers enough so they could buy his cars. You don’t want to pay people enough to buy your sandwiches, but think they’ll sell.
Half of the households in the US make less that $50, 000/year, but the middle class isn’t being squeezed, small business is. What do you want from me – the corporations own Congress, and I’m getting screwed by the same policies that reward corporations and ignore small business.