The $15 disaster: Seattle’s grim warning for NYC

[Madmallard]

From the article:

In reality, businesses have to make tough choices and cut back, so it’s often low-income workers who pay the price for this progressive policy.

The elitist politicians pushing through radical minimum-wage hikes surely understand the financial jig they’re asking businesses to dance. When it comes to the budget in their own offices, they apparently can’t make the finances work.

Right now, 18 of New York’s Democratic members of Congress have co-sponsored the federal Raise the Wage Act, which would raise the minimum wage nationwide to $15 by 2024. These congressional supporters include Sen. Kirsten Gillibrand, who recently tweeted that “no person who works 40 hours a week should still live below the poverty line.”

Yet not a single one of New York’s 18 senators and representatives co-sponsoring the Raise the Wage Act pays a $15 minimum wage to all his or her staffers — in fact, they don’t pay their interns at all, according to an analysis by the Employment Policies Institute.

Then again, perhaps New Yorkers should envy politicians who stop at mere minimum-wage hypocrisy.

http://nypost.com/2017/06/27/the-15-disaster-seattles-grim-warning-for-nyc/

 

[Bob]

McDonald's currently has kiosks in 500 stores. They're targeting 2500 stores by the end of this year, and all stores by 2020. You will soon also be able to order and pay for your food via smartphone app.

McDonalds WILL be the model for fast food and quick-service before long. Keep pushing for that $15 an hour and see what happens.

 

[Jmac00]

 

[Criticalt]

These politicians know exactly what they are doing. They were told by EVERY expert, including their own, what a disaster this would be.
Its a win win for them.
They get votes for going along with it and they get a bunch of unemployed entitlement recipients when it fails.

 

[The30oz]

"It’s worth noting that these findings are preliminary, not yet subjected to the scrutiny of peer review."- from the article

I dont support raising the minimum wage but both studies (only 2) are shit. They both looked at different jobs with differwnt variables which would obviously give them different outcomes.

 

[tirwin1]

It's interesting. There are all kinds of articles out based on the results of Seattle. Lefty sites are spinning it as good news, conservative sites as confirmation of their predictions. I've read a few articles from both sides and they all seem to be based on the same study. How can this be? How can one study be cited by everyone and interpreted in different ways?

The news today is almost 100% pure spin. It takes work to get to the actual truth of the matter. The simple reporting of facts has taken a back seat to barely concealed editorial spin. No wonder the reputation of the press is below used car salesmen.

 

[nortatoga]

 

[Criticalt]

It's interesting. There are all kinds of articles out based on the results of Seattle. Lefty sites are spinning it as good news, conservative sites as confirmation of their predictions. I've read a few articles from both sides and they all seem to be based on the same study. How can this be? How can one study be cited by everyone and interpreted in different ways?

The news today is almost 100% pure spin. It takes work to get to the actual truth of the matter. The simple reporting of facts has taken a back seat to barely concealed editorial spin. No wonder the reputation of the press is below used car salesmen.

There are some facts that cannot be spun.
Businesses in Seattle are cutting jobs and having workers take on the extra work for the extra pay.
Companies in Seattle are actively looking for ways to cut costs and automating their business.

I also know that NY business are doing the same.
My GF is the HR manager for a LARGE national company.
Even though WNY isnt at $15 yet, her company is very proactively looking to save millions of dollars.
In preperation they have ALREADY eliminated assistant manager positions in 11 NY stores. 100% because of the $15 minimun.
They are also getting rid of long time associates that make over $10/hr so they dont have to compensate them later.
They are hiring less and giving more responsibility to current employees.
This is happening in preperation for the pay hike, so its not a huge stretch that Seattle is far beyond this.

 

[@thewheels]

This is really simple math even for politicians.

Mickey D's has one of the best profit margins in the FF industry at roughly around 20%. Most FF chains are much lower.
Raise payroll by 30, 40 or even 50% and those margins take a giant shit.
There's 3 remedies.
1. Cut costs
2. Raise prices
3. Both 1 and 2

Pols have knowingly done nothing more than buy the votes of their ignorant constituents and Business foots the bill.
Hidden bonus: The workers become more dependent on the gov to offset their overall loss in earnings.