Minimum Wage Increase Impact/Effect

morekaos said:
Its a circle jerk.  They have had forced living wage laws there for years that have driven up cost of living by artificially raising wage costs that raise all costs.  Its a failed experiment that that article can't bring itself to admit...I used that article because of its astonishing denial and its groping for any other excuse but the obvious.
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I know non-chain, non millionaire-backed restaurants have trouble surviving or even being opened in Irvine. I'm curious to know what percentage that is due to the high labor costs verses the high rent they have to pay to their billionaire landLORD.
 
Loco_local said:
morekaos said:
Its a circle jerk.  They have had forced living wage laws there for years that have driven up cost of living by artificially raising wage costs that raise all costs.  Its a failed experiment that that article can't bring itself to admit...I used that article because of its astonishing denial and its groping for any other excuse but the obvious.
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I know non-chain, non millionaire-backed restaurants have trouble surviving or even being opened in Irvine. I'm curious to know what percentage that is due to the high labor costs verses the high rent they have to pay to their billionaire landLORD.
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As a result, you get more and more food trucks for those who want a quick start-up! :p
If you are successful at that, and manage your finances wisely, perhaps you'll get a shot at your own Irvine restaurant being successful.  If there's the will, people will find a way.



 
Loco_local said:
morekaos said:
Its a circle jerk.  They have had forced living wage laws there for years that have driven up cost of living by artificially raising wage costs that raise all costs.  Its a failed experiment that that article can't bring itself to admit...I used that article because of its astonishing denial and its groping for any other excuse but the obvious.
Click to expand...

I know non-chain, non millionaire-backed restaurants have trouble surviving or even being opened in Irvine. I'm curious to know what percentage that is due to the high labor costs verses the high rent they have to pay to their billionaire landLORD.
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So your in favor of rent control?
 
Loco_local said:
eyephone said:
Loco_local said:
eyephone said:
So your in favor of rent control?
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No, I'm just against monopolies and greed.
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Do you know what a monopoly is? (Please don't say it's a board game)
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No.  Please tell me.
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Maybe you shouldn't throw words around if you do not know what it means.

A monopoly is a market structure in which there is only one producer/seller for a product.
 
Ok. I got it.  Thank you. Maybe I should go back to school and take econ 101. I wonder if Peter Navarro still teaches at UCI. If not I can always read his textbook.
 
Nevermind. That would be a bad idea
http://www.forbes.com/sites/timwors...alarmingly-ignorant-about-trade/#4f44a79881e3

Donald Trump's Trade Adviser, Peter Navarro, Is Alarmingly Ignorant About Trade
Donald Trump's arguments on trade have been puzzling economists. Not because they are quite clearly founded in an absolute ignorance of what trade is or how it works, for that is rather common. All too many people, and definitely too many politicians, believe that it is exports that make us rich when it's really access to the imports which drives the whole idea. Similarly a trade deficit, in a world of floating currencies, isn't a problem because a deficit will be, has to be as a matter of accounting identity, balanced by a capital account surplus. Getting these things wrong is all too usual.

No, what is puzzling economists is that it's difficult to work out where these ideas are coming from. It's okay, if a little lazy, to get them wrong if you're not paying attention. But to be taking advice from someone who is gloriously, entirely, wrong on the subject takes some doing. So, where are these wrong ideas coming from? And the answer is Peter Navarro. At which point the New Yorker has tried to discuss these ideas with Navarro.
 
Loco_local said:
Similarly a trade deficit, in a world of floating currencies, isn't a problem because a deficit will be, has to be as a matter of accounting identity, balanced by a capital account surplus. Getting these things wrong is all too usual.
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Yes, how to we get a surplus in the capital account?  Money flows into the country.  What's the money do when it gets in the country?  It buys the ASSETS.  In an nutshell the Capital Account is Net Foreign Asset purchase less Domestic Asset purchases.

The key word is floating currencies.  If the currencies floats and foreign entities buy domestic assets, our currency stays floating.  If they don't, the currency crashes when accompanied by trade deficits.

Another way of thinking of what the economists are saying is it's okay if you overspend, you're getting richer as long has you can increase the line of equity on your house.
 
This is so obvious as to be stupid....law of unintended consequences but for some the outcome was clear.

The Minimum-Wage Job-Killer Strikes Again!

Economic Fallacies: McDonald's stock has hit new highs in recent days, despite fast-food industry woes. Why? Mickey-D's is replacing 2,500 human workers with digital kiosks this year. Way to go, minimum-wage advocates!

Working from the absurd idea that if higher wages are good for individual workers, it must be socially beneficial to have government order all employers to pay their workers more, progressives and other leftists have had extraordinary success in forcing small businesses to pay higher minimum wages.

Big Mac's stock is up 27% this year. Why? Pushed by concerns over a rising minimum wage, the fast-food chain is replacing human cashiers as fast as it can. But it really has no choice.

By the end of 2017, it plans to have digital cashiers in 2,500 restaurants; by 2018, another 3,000 restaurants will go digital. They're also going to let you order via mobile device at 14,000 restaurants by year end. McDonald's calls it the "Experience of the Future" strategy.

That's thousands of workers gone. That's no future jobs for young people with no skills, no training, no education and no alternative who might have found a job at McDonald's.

Don't blame Ronald McDonald. This is the inevitable result of the minimum wage, pushed down business' throats by politicians using the phony language of compassion and economic equality.

http://www.investors.com/politics/editorials/the-minimum-wage-job-killer-strikes-again/
 
UW study finds Seattle?s minimum wage is costing jobs

http://www.seattletimes.com/business/uw-study-finds-seattles-minimum-wage-is-costing-jobs/

This latest study from the UW team looks at the effects of both the first and second jumps. The second jump, in January 2016, raised the minimum wage to $10.50 to $13. (The minimum wage has since gone up again, to the current $11 to $15. It goes up again in January to $11.50 to $15.)

The team concluded that the second jump had a far greater impact, boosting pay in low-wage jobs by about 3 percent since 2014 but also resulting in a 9 percent reduction in hours worked in such jobs. That resulted in a 6 percent drop in what employers collectively pay ? and what workers earn ? for those low-wage jobs.

For an average low-wage worker in Seattle, that translates into a loss of about $125 per month per job.
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http://irle.berkeley.edu/seattles-minimum-wage-raises-pay-without-costing-jobs/

Berkeley, CA ? Seattle?s groundbreaking minimum wage law is raising pay for low-paid workers without hurting jobs, according to a new report released today by University of California, Berkeley economists. The report, which analyzes employment data before and after the law went into effect, finds no evidence of job loss in the city?s restaurant industry, even as pay reached $13 for workers in large companies.

?Seattle?s minimum wage law is working as intended, raising pay for low-wage workers, without negatively affecting jobs,? said Professor Michael Reich, lead author of the report. ?These findings are consistent with the lion?s share of rigorous academic minimum wage research studies.?

Seattle was one of the first municipalities in the U.S. to enact a gradual minimum wage increase to $15 an hour. The minimum wage increased to $10 or $11, depending on business size on April 1, 2015. A second round of increases, including a $13 minimum for some large businesses, took effect on January 1, 2016. In 2017, minimum wage rates for workers in Seattle range between $11 an hour and $15 an hour. The full $15 minimum wage will be phased in for all workers in the city by 2021.

Using state-of- the-art ?synthetic controls? methods, the researchers analyzed county and city-level data for 2009 to 2016 for all employees in the Quarterly Census of Employment and Wages. They compared Seattle?s restaurant pay and job growth patterns with a ?synthetic Seattle,? constructed from a weighted average of comparable metropolitan economies across the U. S.

The results of the UC Berkeley analysis show that wages in Seattle?s food service industry increased because of the minimum wage law. The wage increase was less pronounced in full-service restaurants, suggesting that restaurants took advantage of the new tip credit included in the city?s minimum ordinance.
 
They addressed that report from....


Reich and economists at the left-leaning Economic Policy Institute."

And

"the UW researchers did conclude that, for low-wage restaurant workers, the law cost them work hours. (Specifically, though the actual number of hours worked by low-wage restaurant workers in Seattle increased a slight 0.1 percent from the second quarters of 2014 to 2016, the researchers? ?synthetic Seattle? model showed that if the minimum wage law hadn?t been in effect, there would have been an 11.1 percent increase in hours for those workers.)"

 
morekaos said:
This is so obvious as to be stupid....law of unintended consequences but for some the outcome was clear.

The Minimum-Wage Job-Killer Strikes Again!

Economic Fallacies: McDonald's stock has hit new highs in recent days, despite fast-food industry woes. Why? Mickey-D's is replacing 2,500 human workers with digital kiosks this year. Way to go, minimum-wage advocates!

Working from the absurd idea that if higher wages are good for individual workers, it must be socially beneficial to have government order all employers to pay their workers more, progressives and other leftists have had extraordinary success in forcing small businesses to pay higher minimum wages.

Big Mac's stock is up 27% this year. Why? Pushed by concerns over a rising minimum wage, the fast-food chain is replacing human cashiers as fast as it can. But it really has no choice.

By the end of 2017, it plans to have digital cashiers in 2,500 restaurants; by 2018, another 3,000 restaurants will go digital. They're also going to let you order via mobile device at 14,000 restaurants by year end. McDonald's calls it the "Experience of the Future" strategy.

That's thousands of workers gone. That's no future jobs for young people with no skills, no training, no education and no alternative who might have found a job at McDonald's.

Don't blame Ronald McDonald. This is the inevitable result of the minimum wage, pushed down business' throats by politicians using the phony language of compassion and economic equality.

http://www.investors.com/politics/editorials/the-minimum-wage-job-killer-strikes-again/
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The McD's I see all have signs up advertising wages higher than the proposed minimum wage.

The automation isn't about dollars, it's about the fact that they can't hire workers even though they're paying higher than the proposed minimum wage.
 
I don't ever recall so many places at once having help wanted signs. Almost every fast food place, Home Depot, etc.
 
Seattle may be a bad example. Have you seen their unemployment stats? That's a pretty hot labor market right now.

Bottom line on this type of automation is that it would happen regardless of minimum wage hikes. This may all backfire at some point when they charge you $10 for a value meal at a glorified vending machine/building.
 
qwerty said:
I don't ever recall so many places at once having help wanted signs. Almost every fast food place, Home Depot, etc.
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But are they full time openings? I talk to a lot of retail workers who say........ I have to go to my "other job" because they have two or three part time jobs, none of which qualify for health benefits. They want one full time job with benefits but several part time is what they can get.
 
Minimum wage hasn't gone up to $15/hr yet and Shinsengumi in Irvine is already charging $20 for udon.

I am now buying ready and frozen meals from Trader Joes.  $_$

Back in late 80's I was pushing shopping carts at $3.25 or $3.35/hr.  Community college was $5/unit.

Today minimum wage is going to $12/hr next week, and community college charges $46/unit.

People say "minimum wage workers should go to community college and learn a skill".  OK, make community college job training programs more affordable please.  ;p
 
momopi said:
Minimum wage hasn't gone up to $15/hr yet and Shinsengumi in Irvine is already charging $20 for udon.

I am now buying ready and frozen meals from Trader Joes.  $_$

Back in late 80's I was pushing shopping carts at $3.25 or $3.35/hr.  Community college was $5/unit.

Today minim wage is going to $12/hr next week, and community college charges $46/unit.

People say "minimum wage workers should go to community college and learn a skill".  OK, make community college job training programs more affordable please.  ;p
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In the early 80's community college was $00000000000000000 per unit.

In the late 70's UCI was $200 per quarter (3 quarters regular session) between the reg fee and educational fee and you got a free bus pass. Cal State was $100 per semester, plus books in both cases.

And UC med school............. lol! You could go for $860 per YEAR in fees, plus books, room and board of course.

Out of state was way more. Back in those days it was a big benefit to be a California resident unlike now when the state schools rather charge out of state fees than have our own kids go there.

Min. wage in the late 70's went from $2 to $3.10 on Jan. 1 1980.

I worked full time to put myself thru school with those low tuition rates and even then I had student loans.

An ENTIRE year's worth of wages going to nothing else bought a Ford pinto, manual transmission, no radio, floor mats or a/c. Today an entire year's worth of wages would probably buy a much better Honda Civic.

 
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