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Marylee Shrider: Minimum wage hike hurts business
The $8 minimum wage has profound impacts on business, columnist Marylee Shrider writes this week. She's seeing it in higher prices on menus around town. And the business owners and managers she talked with say it's making them adjust hours down and hold off on hiring. So was the $8 minimum wage a good move? — Christine Peterson 97 comments from 26 users
posted by
tonyh
on Feb 29, 2008 at 12:33 PM
The outcome really doesn't surprise me. I've seen it happen before and expected it again this time. The $8 minimum wage wasn't a good idea. This was known and predicted before it was passed. I guess "Seeing is Believing", or maybe not, for some folks. posted by
ChicoEsquela
on Feb 29, 2008 at 12:37 PM
Obviously it is NOT Tony (re "seeing is believing") Many of us warned just this would happen Unfortunately, the people for Min Wage are not business people They are Pols, Libs, and Feel Good Types posted by
TomW
on Feb 29, 2008 at 12:41 PM
Yup, every time we pass the minimum wage, all the businesses say they won't survive. Then all the businesses gripe about how hard it's made things. Then they all do fine. Look at the areas of the country that have the highest minimum wage. How are those places doing? The probem with people who are against the minimum wage is that they have no understanding of economics. Edit: I'll add to this that I'd like to see MaryLee follow up on this in six months to see how business is. posted by
tonyh
on Feb 29, 2008 at 12:42 PM
Ya', too bad the "Feel Good" only lasted a few seconds. We'll be dealing with the damage for years to come. posted by
TomW
on Feb 29, 2008 at 12:48 PM
Actually, Tony, every time the minimum wage goes up, wages increase in the bottom 3 quintiles of income. If by "damage" you mean "expanding middle class", that seems about right. posted by
sfinboston52
on Feb 29, 2008 at 12:53 PM
posted by
ChicoEsquela
on Feb 29, 2008 at 12:56 PM
The probem with people who are against the minimum wage is that they have no understanding of LIBERAL economics. Mattloched that for ya............... posted by
ChicoEsquela
on Feb 29, 2008 at 12:58 PM
and I support worker rights to earn a fair wage, which benefits all people. Thanks for prividing a real life real time example: They are Pols, Libs, and Feel Good Types
posted by
airqualityguy
on Feb 29, 2008 at 12:59 PM
It doesn't take a math genius to see a that a $1 increase in the minimum wage at most restaurants would not result in more than a 1% raise in total costs to the restaurant. Maybe that $20 meal needs to go up 25 cents; big deal if someone can feed their kids a little better. So what is really causing restaurants to raise their prices? Anyone ever hear of inflation from higher oil prices? Or sky rocketing food prices because all our surplus corn has been turned into fuel for our SUV's? posted by
tonyh
on Feb 29, 2008 at 01:01 PM
What good are increased wages if the cost of goods and services go up too. When things smooth out, there's NO increase in buying power, so those increased wages did nothing. In the mean time, the economic turmoil that the rise causes, prices a lot of people out of certain goods and services. This causes spending to decrease temporarily, which hurts the job market for those minimum wage earners. They actually get hurt in the short run by the shock wave. In the long run, it doesn't do a damn thing for anyone. "The problem with people who are against the minimum wage is that they have no understanding of economics." Nobody here said anything about being for, OR against a minimum wage. Before you proclaim us all to be a bunch of blithering idiots, maybe you should read the article. posted by
TomW
on Feb 29, 2008 at 01:01 PM
Chico, there's no such thing as "liberal economics" or "conservative economics". Of course, if you understood economics, you'd know that too. I think a follow up piece should clear all this up for you though. posted by
witbee
on Feb 29, 2008 at 01:02 PM
Perhaps some people missed the part where the business owners said they are cutting hours, not replacing workers and removing benefits? Sounds like we really helped out there..... posted by
sagefever
on Feb 29, 2008 at 01:02 PM
Well tell Ms. Shrider to check out the new 79 cent menu at Taco Bell...saying the min. raise is the cause for higher prices ,is like getting out one cactus thorn and thinking you got them all.Synergizium,interconectivity..economics is many faceted. posted by
allRED
on Feb 29, 2008 at 01:03 PM
I told my wife in 1970 if we make $ 5.00 per hour we would be rich I started @ Kern Rock right after that for $ 4.65 per hour I worked for Culligan in 65/70 for $ 300,00 a month with five of us we really had to make ends meet When I meant my wife i worked for Safeway Markets I told home $ 13.13 a week believe me I didnt wine and dine her but I was a box boy and only worked Sat/Sun When I went into Dispatch @ Kern Rock in 1992 over $20.00 per hour a very nice truck four weeks vacation and a retirement plan But I really enjoyed the $ 300/400 a month income all of us family and friends seemed to be together more nobody had anything but I believe we were happier then Money plays agaisnt family and friends posted by
allRED
on Feb 29, 2008 at 01:07 PM
Just a PS: when I started @ K/Rock concrete was $11 per yard When we were bought out by Cal Mat Concrete was $ 70.00 per Yard I hear now it is $ 95.00 plus p/yd. posted by
adampayne
on Feb 29, 2008 at 01:26 PM
I have read some mean spirited columns, and opinion articles, over the years, but this column sinks to a new low for hostility against the people who struggle the most in this country. The biggest opponent to the minimum wage hike was the restaurant trade association and lobby group, The National Restaurant Association. I guess Marylee must be a charter member. The real facts regarding minimum wage are these. The best minimum wage in the history of the US (and a minimum wage was first established in 1938 at $.25 an hour) was in 1968 at $1.65 per hour. In real dollars, accounting for all the economic variations and fluctuations that paltry sum translates to $9.47 against today's dollar. America's minimum wage today is still well below what the wage's value was for a twenty year period between 1961 and 1981. The minimum wage still puts people at the poverty level in today's America. I am glad to see that the author of this column still has absolutely no capacity to factor in many of the other costs that may also have contibuted to a higher ticket at her favorite resaurant. Since oil just clocked in at a record of $102 per barrell and our gasoline prices are fast approaching $4 a gallon, transportation costs probably have had no influence these past few months in higher costs of goods. The Consumer Price Index saw an increase of more than 22% for the last three month period in transporation costs, and a three month increase of over 43% for energy costs. When you take a twelve month average transportation costs have increased by more than 9% while energy costs increased nearly 20% more than we were paying a year ago. Foods this year are also much higher than other goods for an index increase. Maybe you could ask some of these minimum wage earners to provide research for you, Marylee. I am sure they have some stories to tell you about their "flex" schedules and part-time status to dissalow them benefits. Maybe, you could also look into a government run health care plan that would remove the burden of health care costs from employers which could allow them to compete better in this global economy.
posted by
ProgressivePete2
on Feb 29, 2008 at 01:33 PM
So the logic displayed on here is that we shouldn't bother raising the minimum wage because the price of everything is going up, so in the end it doesn't help. The alternative being that the unfortunate people making min wage just wouldn't be able to afford what they could before, but I guess in your view that's their problem right?
Every time raising minimum wage is brought up, the same people complain about the cost for business owners, but historically, it hasn't shown to have any effect over the long term. I just see it as the rich wanting to keep every stinkin penny they can. The minimum wage hasn't kept up with inflation for a long time now. The min. wage is at it's lowest point in decades when you compare it to inflation. Mix that with the wealthy of this country having more than they have had in decades due to massive tax cuts that we can't afford, and you get the usual complaining about how bad it would be to have the working poor of this country make a few extra bucks rather than have it sit in a bank somewhere. What next, are the working poor going to start wanting affordable health care? Geez, what's their problem? they should just get another full time job or two, right? posted by
ProgressivePete2
on Feb 29, 2008 at 01:42 PM
I challenge Marilee to go a whole month as if she only made $8 an hour for a full time 40 hours per week job. No going out to dinner, no extra trips in the car anywhere, no manicures or getting your haircut or her triple half caff carmel latte from starbucks, and you'd better make your martinis out of that cheap vodka in the big plastic bottle. Oh, and I hope she doesn't get sick sick. People on minimum wage don't have insurance or money to pay for a doctor. No cheating either. Call it a journalistic excercise. Hey you could even write about your experiences.
Don't worry I won't hold my breath that she'd do anything that daring. posted by
trueblueguru
on Feb 29, 2008 at 01:50 PM
posted by
ProgressivePete2
on Feb 29, 2008 at 02:08 PM
It is great for the worker, but keep in mind the worker is also a consumer, and there are a lot more workers than there are business owners. posted by
catpaw
on Feb 29, 2008 at 02:13 PM
When have employers ever said, "Good idea, it's about time" when minimum wages have gone up? But don't despair, there is a way out of this unfair financial burden before businesses go bankrupt: Call legislators and let them know that you back George's open border policy, amnesty and guest worker programs. That'll show those greedy minimum wage employees. posted by
tonyh
on Feb 29, 2008 at 02:25 PM
Does anyone on this blog actually earn minimum wage? If so, let's hear from you. Are you trying to support yourself and family on minimum wage, or is someone else supporting you? How old were you, the last time you actually worked for minimum wage? Let's hear from everyone. I'll start. I was 15 years old, the last time I had a minimum wage job. It was a part-time job too. posted by
jfrancais
on Feb 29, 2008 at 02:31 PM
I had a job where I made $6.00/hr (min wage wage was 4.25) and I thought I was on top of the world! I've never worked for minimum wage but had wages that were pretty close to it. As a matter of fact, when I was deployed I'm sure I made below minimum wage based on the hours worked (I love my job anyway!). posted by
ChicoEsquela
on Feb 29, 2008 at 02:38 PM
Uhhhhhhhhhh............... no math genius here but I had a business wherein approx 70% of the costs were personnel costs. Since your lowest level employee getting the additional dollar (your example AQG) affects what all the others have to get to keep separation, comply with "non-compaction" agreements with the unions, etc. I don't know how you figure the $1.00 would only translate to 25 cents in the increased cost of a meal served. Please enlighten me. I'm no math genius posted by
ChicoEsquela
on Feb 29, 2008 at 02:42 PM
p.s. I agree with you on the corn going to ethanol though Not smart Need to find other feed stocks and eventually get to the enzymatic processes that are really efficient in conversion on a BTU basis (input<=>output). Did you know there is a Chevron sub working with algae that produces some incredible weight (and acreage utilized) to output figures? I'll look it up and post it! posted by
jfrancais
on Feb 29, 2008 at 02:45 PM
My father-in-law is part of a business venture to cultivate a type of grass that grow 15 ft. high in hopes that it can be part of the "ethanol solution" . posted by
thetruthhurts
on Feb 29, 2008 at 02:47 PM
Chico, Check out this website if you want some cool info on algae oil. They are attaching algae farms to coal power plants to feed the algae cO2. www.oilgae.com/
posted by
ChicoEsquela
on Feb 29, 2008 at 02:49 PM
Yes "clear" it up for me TomW That would be nice. A lesson in economics. Please don't just cut and paste some article though, as I have read many. Put it in your own words and give some simple examples. Maybe if its "simple" enough I can comprehend it! posted by
ChicoEsquela
on Feb 29, 2008 at 02:52 PM
I will look at it truth. I saw an interesting article in Diesel World Magazine. I'll post the link if I can find it. I agree with AQG, corn is bad idea. Conversion ratio is bad deal. Doesn't mean the whole idea of bio-diesel is necessarily bad. posted by
ChicoEsquela
on Feb 29, 2008 at 02:56 PM
posted by
witbee
on Feb 29, 2008 at 02:59 PM
Why would Marylee want to live for a month on a wage meant for a teenager? Seriously, if you are an adult with a family to feed, you really need to examine your life a little better to try and figure how you got to that position. When I was in college, freshly married with a small baby, I worked two jobs at minimum wage. I didn't expect to make more, I just worked harder to make more. This went on until I got a real 'grown-up' job.
posted by
thetruthhurts
on Feb 29, 2008 at 03:00 PM
I would love to read that article. I will also try to look for it, do you know what the title was? posted by
ChicoEsquela
on Feb 29, 2008 at 03:02 PM
Chico, there's no such thing as "liberal economics" or "conservative economics Tell it to Paul Krugman or Thomas Friedman When some "economists" bleed their economic "theories" over into the political policy realm and utilize their "theories" to support same there most certainly is "liberal economics" or "conservative economics! Of course, if you understood either politics or economics you'd know that! posted by
murphyt
on Feb 29, 2008 at 03:49 PM
Poor Marilee. She makes at least 3 times the minimum wage, but we should feel sorry for her cuz she had to spend two extra bucks at her last dine out. It costs 700 bucks a month to live in a small apartment, another few hundred bucks for utilities, car insurance costs, gas will be 4 bucks a gallon by summer, yet you want these people to live on 1200 bucks a month take home. The biggest night out for a McDonald's worker's kid is to eat at McDonald's. I can hear it now, "Well if they want to make more money, they shouldn't work there." Okay then, who should? Robots? Maybe y'all are down with sweatshops too. posted by
murphyt
on Feb 29, 2008 at 03:52 PM
It's funny how conservative economics means conservative wages for the poor, but outrageous golden parachutes for the rich. A fast food worker should only make 5 bucks an hour, but a CEO who runs a corporation into the ground gets punished by a 5 million dollar severance package. posted by
possummomma
on Feb 29, 2008 at 04:02 PM
?? Prices have been skyrocketing on consumer items for the last three years...please explain to me how a recent minimum wage hike is to blame. That's a joke. And, frankly, if you can't handle the extra dollar for eating out in your favorite restaurant, then let me be the first to show you to your kitchen. Where is your indignation at the cost of gas to fill your car? What about milk hitting all time highs? Where were you when government officials gave themselves raises? Did you turn down your last raise since it meant the Californian was going to be shelling out a bit more money? As a concerned consumer, you might've done your part to avoid the rising costs that would be passed along to the readers and subscribers and advertisers. posted by
dgrealish
on Feb 29, 2008 at 04:10 PM
Had dinner at a restaurant last night where the salad used to be included with the meal. I had to pay 99 cents extra to have it as one of my sides. I filled my truck up last week, it cost $96.30. Things won't get any better either. posted by
jfrancais
on Feb 29, 2008 at 04:26 PM
Maybe y'all are down with sweatshops too. We are all down with sweatshops on some level if we shop at places like Wal-Mart or Harry&Barry's (which I do). American-style Capitalism is all bout making as much as you can on as little as you can (i.e. Huge profits via low wages). It comes to a point where Americans just have to recognize the game and play it. posted by
ProgressivePete2
on Feb 29, 2008 at 04:45 PM
Since someone mentioned gas prices, I'll take this opportunity to bitch about how we now have to pay nearly $4 a gallon and these gas stations can't even afford to keep those window washing/squeegee wands around and filled up with at least water. There's a law on the books about gas stations required to have clean restrooms, I say we make them have window washers and free air too. It's the least they could do with all the extra billions of dollars we are paying the CEO's and shareholders. They're lucky we don't require they hire people to fill our tanks for us like in Oregon. All gas stations in Oregon are full serve only. posted by
adampayne
on Feb 29, 2008 at 06:22 PM
Tonyh, I'll play. I had an interview with a national chain bookseller here in town to supplement my very modest internet business two years ago. I had executive management experience , oversaw purchasing, distribution and in-store operations for a company which did over a billion dollars a year in sales each year during the 1990s and into this decade. The company was liquidated in 2006, the same year I had this interview. The booksellers offered me a job , but never told me what the pay would be until my first and last day on the job. The pay was $7.50 an hour. You receive no vacation for the first twelve months and no health benefits unless you reach a minimum weekly hourly average over a specified period of time. The job was ultimately a floater position where you are on call if some other employee calls in sick, or if business traffic might require an extra body. I left after one day. When I first moved back to town I took a job a a grocery store chain for about seven months. This company did give you benefits after a three month waiting period and when you averaged over 30 hours a week. It paid a little more than a buck over minimum wage. I left that job when they told me during my review that because I had been hired at such a high starting rate I would not see a raise for at least another year. I talk to a lot of people at various locations around town where people in former occupations and industries one day were cashed out and now work at low level jobs, many at more than one to make ends meet. I am lucky in that I do have some investments and a lovely spouse who makes a decent wage at a good company, but the facts are the minimum wage is becoming the prevailing wage for too many people in this country. posted by
TomW
on Feb 29, 2008 at 07:01 PM
Actually, I have an extra little question for MaryLee: Can you go back and ask those business owners how their sales are year over year? With inflation up, I wouldn't be surprised if business was off. posted by
tonyh
on Feb 29, 2008 at 07:33 PM
Ya' that's what I thought....................................cricke ts chirping...................Nobody on here is actually making minimum wage and trying to support a family. Nobody on here can even remember when they actually MADE minimum wage.........What a bunch of BLOWHARDS!!! posted by
johnburnssucks
on Feb 29, 2008 at 07:36 PM
Yup, every time we pass the minimum wage, all the businesses say they won't survive. I heard that once from a guy who owned a deli. He and his wife each drove a Lexus. Victims.
posted by
tonyh
on Feb 29, 2008 at 08:17 PM
And that's the classic attitude of someone who has no clue what it's like to put your entire financial livelihood on the line to be self employed. It sounds like their Deli gamble paid off for them.........at that point in time. How do you know that they weren't living in the back room a couple of years later, when business fell off? posted by
sagefever
on Feb 29, 2008 at 08:37 PM
I "made" minimum wage at "part time" job when my son was alive~ caring for him.It was no picnic. I'll check back tomorrow for your point. posted by
TomW
on Feb 29, 2008 at 08:41 PM
Tony, my first minimum wage job was working as a busboy at a country club. My lowest paying was a scholarship working in a summer rep theater. I pulled 700 a month for 70 hours a week of work. posted by
tonyh
on Feb 29, 2008 at 08:49 PM
Lemmy get this straight. You were being paid to take care of your Son. Do I understand that right? If I'm understanding right, How'd that work? And, were you the primary bread winner? My point is that, as of now, this blog has been viewed 101 times and you're the first person to answer my question who, as an adult, worked for minimum wage. It still wasn't a full time job though. I asked my questions almost 9 hours ago. posted by
TomW
on Feb 29, 2008 at 08:49 PM
Tony, I am self-employed so I guess whatever I think is the classic attitude of a small business person. By the way, I'm not sure if you caught it, but this hike also raised the minimum wage for people who provide their own tools to 16/hr. That bumps my hourly charge as well. posted by
TomW
on Feb 29, 2008 at 08:51 PM
Gee, Tony, didn't realize we were all on a schedule. I'll be posting some questions for you tomorrow. I'll expect a prompt reply. posted by
tonyh
on Feb 29, 2008 at 08:57 PM
"Tony, my first minimum wage job was working as a busboy at a country club." ......and you were how old? Part-time of full-time? Were you living with Mom, or paying your own bills? "My lowest paying was a scholarship working in a summer rep theater." I have no clue what this means..............
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