A study suggests that higher minimum wages hit poorer bosses’ pockets

[OfTheCross]

A study suggests that higher minimum wages hit poorer bosses’ pockets


Be a broke "boss", brehs...



Aminimum wage is supposed to redistribute money from rich to poor. But economists disagree about whether it actually does so. Some researchers, for example, have found that, in America, Canada and Europe, raising the minimum wage tends to decrease employment among the least-skilled workers, as firms downsize to trim costs. Others have found no effect on employment. And although no one doubts that the policy raises wages for the workers who stay employed, still unsettled is the question of where that extra money comes from.

A new paper by Lev Drucker and Katya Mazirov of Israel’s Ministry of Finance, and David Neumark of the University of California, Irvine, examines increases in Israel’s minimum wage in 2006-08 in search of an answer. The more low-wage workers a company employed, they found, the more its profits declined. Companies with 60-80% of staff earning the minimum wage saw their profits cut by almost half.

 

[dora_da_destroyer]

i aint read the study, but i know the city of emeryville has been dealing with a rash of small business closures due to rents + their high min wage and how they rolled it out over a short time. once again i feel our blanket liberal policies adversely affect small operators while justifiably trying to go after large corps (this is happening with rent control as well - small landlords being hurt by legislation meant to limit the greed of corp RE and large investors)

let's just find balance/nuance

 

[OfTheCross]

i aint read the study, but i know the city of emeryville has been dealing with a rash of small business closures due to rents + their high min wage and how they rolled it out over a short time. once again i feel our blanket liberal policies adversely affect small operators while justifiably trying to go after large corps (this is happening with rent control as well - small landlords being hurt by legislation meant to limit the greed of corp RE and large investors)

let's just find balance/nuance

Simple. Just put in exceptions based on size. Didn't they do that with Obamacare...?

Doesn't ever other tax law have exceptions and loopholes?

I bet Rent going up is more of a factor than Minimum Wage, though...unless it was a big ass increase in wages...

 

[GnauzBookOfRhymes]

i aint read the study, but i know the city of emeryville has been dealing with a rash of small business closures due to rents + their high min wage and how they rolled it out over a short time. once again i feel our blanket liberal policies adversely affect small operators while justifiably trying to go after large corps (this is happening with rent control as well - small landlords being hurt by legislation meant to limit the greed of corp RE and large investors)

let's just find balance/nuance

Balance/nuance is impossible nowadays with out current political system.

 

[Strapped]

Ab5 will try to give gig economy workers a semi fair chance

Hopefully the workers support this moving forward to stop the 1 percenters from hoarding all the bread . This will also affect how amazon does business.

 

[dora_da_destroyer]

Simple. Just put in exceptions based on size. Didn't they do that with Obamacare...?

Doesn't ever other tax law have exceptions and loopholes?

I bet Rent going up is more of a factor than Minimum Wage, though...unless it was a big ass increase in wages...

people underestimate how thin of margins folks are operating on, especially restaurants. rent, supplies, insurance, utilities eat up a lot...CA has, at least in my lifetime, always paid full state/locale min wage to these workers so margins have had to take that into consideration.

in emeryville, min wage is $16.30/hr, they shot down an exception for small businesses to only pay $15/hr...they have so much commercial space sitting idle because coming into new spots is prohibitively expensive as most spots are made for small to mid size businesses and they can't pay the rents + wages, and this area of the bay is notoriously anti-chain - the people who could pay it. it's actually the perfect real live proof for conservative talking points...residents are also mad as hell about all the closures and vacant spaces

 

[Serious]

@DEAD7

 

[Domingo Halliburton]

i aint read the study, but i know the city of emeryville has been dealing with a rash of small business closures due to rents + their high min wage and how they rolled it out over a short time. once again i feel our blanket liberal policies adversely affect small operators while justifiably trying to go after large corps (this is happening with rent control as well - small landlords being hurt by legislation meant to limit the greed of corp RE and large investors)

let's just find balance/nuance

I have no sympathy for landlords.

 

[Rarely-Wrong Liggins]

If the employer can't afford to pay their employees a living wage then they should be liquidated and the employers who can pay the living wage will be able to absorb the extra capacity in the market and thrive. Isn't that how the free market works?

 

[OfTheCross]

@DEAD7

all things in moderation. Minimum wage can go up a bit..(based on location)

 

[Serious]

If the employer can't afford to pay their employees a living wage then they should be liquidated and the employers who can pay the living wage will be able to absorb the extra capacity in the market and thrive. Isn't that how the free market works?

What if you're a new company though. Also like mentioned above a lot of companies operate on margins...

Also a lot of companies out there are actually already in trouble or struggling with debt.

 

[Rarely-Wrong Liggins]

What if you're a new company though. Also like mentioned above a lot of companies operate on margins...

Also a lot of companies out there are actually already in trouble or struggling with debt.

The market is emotionless. Only the strong will survive. Right?

 

[dora_da_destroyer]

I have no sympathy for landlords.

sounds like someone who has never owned shyt

 

[Macallik86]

If the employer can't afford to pay their employees a living wage then they should be liquidated and the employers who can pay the living wage will be able to absorb the extra capacity in the market and thrive. Isn't that how the free market works?

This.

Also, there will be some offset of lost jobs as people working more than one job can quit their second job as they can now survive off of one paycheck.

 

[dora_da_destroyer]

If the employer can't afford to pay their employees a living wage then they should be liquidated and the employers who can pay the living wage will be able to absorb the extra capacity in the market and thrive. Isn't that how the free market works?

is it fukk big business/start your own shyt, #supportlocal or fukk small biz only ones who should thrive is big business

This.

Also, there will be some offset of lost jobs as people working more than one job can quit their second job as they can now survive off of one paycheck.

with what jobs? yall conveniently love to talk in the theory of a perfect world and i have post in this thread sharing what's actually happening in a bay area city.

small businesses can't move afford to do business in emeryville right now, yet most the storefronts and restaurants are partitioned for small business plus the city is anti chain...so now you have storefronts sitting vacant, people out of jobs and nothing coming to replace it...sure sounds like blanket application of minimum wage hikes is working