AARP and the photographers of Magnum Photos look at older people living in new ways around the world in A New Age.

Reply
Valued Social Butterfly
0
Kudos
144
Views

Re: Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact

144 Views
Message 1 of 25

@KidBoy2 wrote:
Beware the Consequences of a $15 Minimum Wage
Those who say raising the minimum wage will have no effect on employment are dreaming.

https://www.inc.com/magazine/201603/norm-brodsky/15-minimum-wage-consequences-for-businesses.html

As most of you probably know, I operate a chain of fast-casual restaurants in New York City called Kobeyaki, which feature Japanese "rolls, bowls, burgers & buns." We employ 45 people in three locations and more than 80 percent of them are hourly--which puts me right smack in the middle of the current debate over the minimum wage.

That debate is raging in New York, where the governor has publicly committed to raising the minimum wage to $15 per hour as soon as he can. (It's currently $9 per hour in New York; the federal minimum is $7.25.) I understand the emotional appeal of such a move, and, like most entrepreneurs, I have no problem paying employees as much as the business can afford. My partners feel the same way. But if $15 per hour becomes our entry-level wage, there will be consequences. We will have to make significant changes to our operations to stay in business. Jobs will be lost.

The reason is simple math. Our restaurants will no longer be viable if labor costs rise above 35 percent of revenue. And no, we can't just jack up prices and pass the additional cost along to customers. There are real limits to what people will pay. We can charge only so much for a shrimp tempura roll or a Kobe beef burger before our customers will start looking at other dining options.

Right now, labor costs in each of our restaurants average about 26 percent of revenue. We're paying the minimum wage for entry-level jobs, such as busboy and dishwasher. Other hourly people get more than that, but none as much as $15 per hour. If the minimum rises, not only will we have to pay more to entry-level people, but everyone above them will have to get a raise as well. You can't pay someone who does food preparation what you pay someone who buses the tables and sweeps the floors.

Don't get me wrong. I would like to be able to pay entry-level people $15 per hour and raise everyone else's wages as well. It's just not feasible. Before the government forces us to do it--as seems likely--we have to take steps to protect both the business and as many jobs as possible.

The first options are to automate and outsource, and we're preparing to do both. Much of the ordering is already automated. We have employees taking and inputting orders right now because human contact is important to building customer relationships. But we'll have to cut back on the number of people doing that job. Customers will have to input their own orders either online or at a console in the restaurant. Nor will we be able to have as many people preparing the food. We prefer to do that ourselves, but we can outsource the work. That will eliminate more jobs and allow us to reduce our labor costs.

I realize that these types of changes will have some negative consequences, both for businesses like mine and for society as a whole. Entry-level, minimum-wage jobs are the first rung on the ladder you have to climb to have a career. In all the businesses I've run, we've recruited people for better-paying, higher-level positions from the entry-level pool. A $15-per-hour wage will put some people on more solid economic ground but at the same time make it harder for thousands of others to find work and get started on a career.

Kobeyaki is not an isolated example. Every business with minimum-wage employees faces the same pressures that we do and will be forced to respond. Those who say raising the minimum wage will have no effect on employment are dreaming.

===============================================================

The big box stores like Walmart and fast food giant McDonald's will survive but they will cut jobs. Many of the small business will not survive.

Look for higher prices which will hurt the people the Democrats say they want to help.

Why are you posting the same material again. I gave you an answer on this. It is not true. I told you where you could visit to prove that. I asked you what places have you visited that have the high minimum wage and what you say has happened. I will give you the answer. none. I covered McD, and Walmart plus other stores with you, and gave you facts on what is really happening. Instead of answering me you just repeat the same things over again to another person. They were not true when I answered you, and they are not true now.

Report Inappropriate Content
0
Kudos
144
Views
Treasured Social Butterfly
0
Kudos
189
Views

Re: Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact

189 Views
Message 2 of 25

@KidBoy2 wrote:
williamb39198 posted...

Interesting isn’t it? The right does not want people to earn more in wages for working, perhaps to help move away from public assistance. Yet, they do not want anyone to receive public assistance...message? Just be poor, keep working for substandard wages, and don’t complain!

Any wonder why the right cannot present real solutions, to real problems, for real people.


==================================================

OMG...how can you say "The right does not want people to earn more in wages for working, perhaps to help move away from public assistance. Yet, they do not want anyone to receive public assistance...message? Just be poor, keep working for substandard wages, and don’t complain" ????

That does seem to be the position or the Regressives. Are you saying you are in favor of public assistance and food stamps? 

Report Inappropriate Content
0
Kudos
189
Views
Valued Social Butterfly
0
Kudos
196
Views

Re: Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact

196 Views
Message 3 of 25
williamb39198 posted...

Interesting isn’t it? The right does not want people to earn more in wages for working, perhaps to help move away from public assistance. Yet, they do not want anyone to receive public assistance...message? Just be poor, keep working for substandard wages, and don’t complain!

Any wonder why the right cannot present real solutions, to real problems, for real people.


==================================================

OMG...how can you say "The right does not want people to earn more in wages for working, perhaps to help move away from public assistance. Yet, they do not want anyone to receive public assistance...message? Just be poor, keep working for substandard wages, and don’t complain" ????
Report Inappropriate Content
0
Kudos
196
Views
Valued Social Butterfly
2
Kudos
206
Views

Re: Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact

206 Views
Message 4 of 25

@KidBoy2 

Nothing that I said was untrue. Sorry to hear that you are offended by the truth. 

What the fascist right does not understand, and tries to deny others, is quality of life issues...not just theirs, but for others. The better that the quality of life is for those around you, the better that your own quality of life will be.  

Sad to hear that the restaurant owner only pays minimum wages...funny that his income per year was not posted. 

Or what are the ratings of his restaurants?

Report Inappropriate Content
2
Kudos
206
Views
Valued Social Butterfly
0
Kudos
213
Views

Re: Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact

213 Views
Message 5 of 25
Beware the Consequences of a $15 Minimum Wage
Those who say raising the minimum wage will have no effect on employment are dreaming.

https://www.inc.com/magazine/201603/norm-brodsky/15-minimum-wage-consequences-for-businesses.html

As most of you probably know, I operate a chain of fast-casual restaurants in New York City called Kobeyaki, which feature Japanese "rolls, bowls, burgers & buns." We employ 45 people in three locations and more than 80 percent of them are hourly--which puts me right smack in the middle of the current debate over the minimum wage.

That debate is raging in New York, where the governor has publicly committed to raising the minimum wage to $15 per hour as soon as he can. (It's currently $9 per hour in New York; the federal minimum is $7.25.) I understand the emotional appeal of such a move, and, like most entrepreneurs, I have no problem paying employees as much as the business can afford. My partners feel the same way. But if $15 per hour becomes our entry-level wage, there will be consequences. We will have to make significant changes to our operations to stay in business. Jobs will be lost.

The reason is simple math. Our restaurants will no longer be viable if labor costs rise above 35 percent of revenue. And no, we can't just jack up prices and pass the additional cost along to customers. There are real limits to what people will pay. We can charge only so much for a shrimp tempura roll or a Kobe beef burger before our customers will start looking at other dining options.

Right now, labor costs in each of our restaurants average about 26 percent of revenue. We're paying the minimum wage for entry-level jobs, such as busboy and dishwasher. Other hourly people get more than that, but none as much as $15 per hour. If the minimum rises, not only will we have to pay more to entry-level people, but everyone above them will have to get a raise as well. You can't pay someone who does food preparation what you pay someone who buses the tables and sweeps the floors.

Don't get me wrong. I would like to be able to pay entry-level people $15 per hour and raise everyone else's wages as well. It's just not feasible. Before the government forces us to do it--as seems likely--we have to take steps to protect both the business and as many jobs as possible.

The first options are to automate and outsource, and we're preparing to do both. Much of the ordering is already automated. We have employees taking and inputting orders right now because human contact is important to building customer relationships. But we'll have to cut back on the number of people doing that job. Customers will have to input their own orders either online or at a console in the restaurant. Nor will we be able to have as many people preparing the food. We prefer to do that ourselves, but we can outsource the work. That will eliminate more jobs and allow us to reduce our labor costs.

I realize that these types of changes will have some negative consequences, both for businesses like mine and for society as a whole. Entry-level, minimum-wage jobs are the first rung on the ladder you have to climb to have a career. In all the businesses I've run, we've recruited people for better-paying, higher-level positions from the entry-level pool. A $15-per-hour wage will put some people on more solid economic ground but at the same time make it harder for thousands of others to find work and get started on a career.

Kobeyaki is not an isolated example. Every business with minimum-wage employees faces the same pressures that we do and will be forced to respond. Those who say raising the minimum wage will have no effect on employment are dreaming.

===============================================================

The big box stores like Walmart and fast food giant McDonald's will survive but they will cut jobs. Many of the small business will not survive.

Look for higher prices which will hurt the people the Democrats say they want to help.
Report Inappropriate Content
0
Kudos
213
Views
Treasured Social Butterfly
1
Kudos
232
Views

Re: Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact

232 Views
Message 6 of 25

Perhaps 15.00 an hour  is not official. but my cleaning lady already gets 20.00 and hour and my maintenance man does also.
So, in effect those people are already getting 15.00 or more an hour. whether is official or not.
I will agree that service businesses always are a lot lower than anyone else.

Report Inappropriate Content
1
Kudos
232
Views
Valued Social Butterfly
3
Kudos
234
Views

Re: Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact

234 Views
Message 7 of 25

@KidBoy2 wrote:
Richva posted..

IF the $15 how minimum wage is allowed to go into effect by the regressives, it will improve the finances of millions of Americans. It will reduce the welfare and food stamp rolls. It will force some marginal businesses out but no more than a raise in raw material costs.

================================================================

Sounds like Utopia. Dream on!


It IS Utopia and the great thing is it happened EVERY TIME we raised the minimum wage.

What caused our current Distopia is cutting taxes for the rich, which has NEVER caused the economy to improve, caused deficits to skyrocket, giving GOPers an excuse  to shred the social safetynet, which they did, leaving more people in poverty.

Report Inappropriate Content
3
Kudos
234
Views
Valued Social Butterfly
0
Kudos
240
Views

Re: Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact

240 Views
Message 8 of 25
williamb39198 posted...

Interesting isn’t it? The right does not want people to earn more in wages for working, perhaps to help move away from public assistance. Yet, they do not want anyone to receive public assistance...message? Just be poor, keep working for substandard wages, and don’t complain!

Any wonder why the right cannot present real solutions, to real problems, for real people.

==============================

Not one thing you posted about the right is correct.

Report Inappropriate Content
0
Kudos
240
Views
Valued Social Butterfly
0
Kudos
243
Views

Re: Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact

243 Views
Message 9 of 25
Richva posted..

IF the $15 how minimum wage is allowed to go into effect by the regressives, it will improve the finances of millions of Americans. It will reduce the welfare and food stamp rolls. It will force some marginal businesses out but no more than a raise in raw material costs.

================================================================

Sounds like Utopia. Dream on!

Report Inappropriate Content
0
Kudos
243
Views
Valued Social Butterfly
3
Kudos
254
Views

Re: Support for $15 Minimum Wage Plummets When Americans Are Told Its Economic Impact

254 Views
Message 10 of 25

Interesting isn’t it? The right does not want people to earn more in wages for working, perhaps to help move away from public assistance. Yet, they do not want anyone to receive public assistance...message? Just be poor, keep working for substandard wages, and don’t complain!

Any wonder why the right cannot present real solutions, to real problems, for real people. 

Report Inappropriate Content
3
Kudos
254
Views
cancel
Showing results for 
Search instead for 
Did you mean: 
Users
Announcements

Have a question about AARP membership or benefits? Ask it in the AARP Help Membership forum, Benefits & Discounts forum, or General forum.


multiple white question marks with center red question mark

Top Authors