A $15 Minimum Wage May Do More Harm Than Good

Almost everything in life is based on perspective. Differing perspectives are the reason we have two political parties always at odds with one another, and why we see nightly debates on cable TV news networks over social and economic issues. However, varying perspectives are also what make this country so great, as everyone has the freedom to express his or her opinion.

Today I'm going to share a bit of my own personal perspective on the recently passed minimum wage law in Seattle. I worked for near-minimum wage for a period of my life, and now I earn enough to live comfortably. I'm also a resident of a city not too far north of Seattle. Therefore I have a deep understanding of the inner workings of the city and how this wage increase could affect local and global businesses, as well as the rest of the nation.


Source: Joe Lustri, Flickr.

The city of Seattle sets a precedent
The new law, which was approved by a 9-0 vote by the Seattle City Council, will more than double the current federal minimum wage of $7.25 per hour to $15 per hour and will be phased in over a number of years, depending upon business size. Businesses with 500 or more employees will be required to phase this new wage in by 2017, or 2018 if they're offering health care to employees. Smaller businesses would have five to seven years to complete the phase-in.

This move is particularly notable given that Washington state already has the highest minimum wage in the country at $9.32 per hour and that a proposed federal increase in the minimum wage to $10.10 per hour has stalled in Congress with little traction. 

Source: Yang Lee, Starbucks.

The benefits of a big pay raise
When I worked at my previous jobs, which paid just north of minimum wage, the prospect of a substantial increase in my pay sounded promising, if not downright awesome. The entire basis of the minimum wage increase is to put more money in the pockets of workers to increase their take-home pay and provide them with a wage they can actually live off of. Based on some crude calculations, once the $15-per-hour new law takes full effect, a full-time employee will be making about $31,000 per year before taxes. That's pretty close to three times the current federal poverty guidelines for a single-person family household in 2014 of $11,670. 

In addition to putting more money in the pockets of Seattle workers -- of whom an estimated 100,000 make less than $15 an hour now -- a higher wage could help boost morale. A happy worker is a more efficient worker, and this could lead to improved operating efficiency at businesses, as well as less worker turnover. If a worker is making the highest minimum wage in the country, he or she is likely to take pride in their job and fight hard to keep it, which helps with the cohesion of both small and large businesses and may ultimately trickle down to an improved consumer experience.

This law could do more harm than good
But as I said, everything is based on perspective.

I also see the other side of the argument and believe that drastically raising the minimum wage in such a short period of time (even five to seven years) could prove disastrous to the Seattle economy and large businesses such as Starbucks (NASDAQ: SBUX  ) , McDonald's (NYSE: MCD  ) , and Subway, which fill the streets in Seattle.

First, I'd suggest that with higher minimum wages comes the potential for higher-priced products. Local news station KING 5 in Seattle interviewed David Jones, a Subway franchise owner who would be among the first affected by the law shortly after its passing. Jones noted that he would need to boost his footlong prices by $0.75 (in some cases as much as 15%) just to keep up with the large minimum wage boost.

More importantly, though, Jones notes that this isn't just an increase in wage for workers who currently make less than $15 per hour. With management in many restaurants making around $15 an hour to perhaps a little more than $15 per hour, their wages will need to go up as well to match their job title and/or tenure with a company. Not to mention that the phase-in means bigger businesses like Starbucks, McDonald's, and Subway will need to boost their prices sooner than smaller businesses, which can keep their prices lower for years later while still meeting the wage phase-in requirements.

Source: Dan Moyle, Flickr.

These wage increases mean more money in the pockets of some 100,000 Seattle workers, but it could come at the expense of millions of Seattleites and tourists who could be paying considerably more for practically every product and service within the city limits. It may also cost some workers their jobs, as some businesses may choose to sacrifice staff members over raising prices. With wages high, finding a job within the city could become increasingly difficult.

Secondly, think about how a large increase in the minimum wage could detract from bringing new business to Seattle. With the exception of a handful of sectors -- such as biotechnology, which relies on well-paid and specialized researchers and has a strong footing in Seattle, and retailers like Costco (NASDAQ: COST  ) , which is known for its progressive pay policy and health care benefits for employees -- a higher wage, which leads to higher expenses, could dissuade businesses, both large and small, from opening up shop in Seattle. It may even dissuade business from opening up in Seattle's surrounding communities for fear that the $15 minimum wage could spread to other local communities. This could lead to a decline in competition and a reduction in innovation, which is bad for the consumer on both fronts.

Third -- and a lot of minimum wage workers in Washington state don't fully realize this now -- their benefits, such as free downtown parking, health care coverage, and so on, are included as part of their wage. So as real wages rise to $15 an hour, you could see businesses cutting back on the amount of perks offered to employees. If free downtown parking is eliminated, for example, it could cost area workers $10-$15 per day (trust me -- I've tried to park downtown, and you really won't find a spot much cheaper than this). In addition, large businesses may choose to simply drop workers below the 30-hour-per-week threshold as defined by the Affordable Care Act, removing any chance of paying a penalty for not offering and/or subsidizing full-time workers' health insurance. In other words, the benefits workers may gain in pay could be lost in the intangibles they're not currently factoring into their current pay.


Source: Joe Monin, Flickr.

Here's the biggest concern of all
But there's an even greater concern as I see it. A $15 minimum wage completely removes workers' incentives to develop the skills needed to improve their socioeconomic outlook. The $15 minimum wage law (with exceptions for teenagers, who can be paid below the $15 minimum wage) acts as an instant reward to workers with fewer skills, reducing their desire to learn skills, which may be more desirable by businesses and may land them a better-paying job in the long run.

In a perfect world, wages are based on skill specialization, and in the majority of instances those who have put in the time to go to college or trade school and learn a specific set of skills should be paid more than those who haven't put in that effort. Of course, the world isn't perfect, but the minimum wage boost will only discourage the desire to obtain and grow workers' skills, which is ultimately bad for businesses.

You decide
The good news for both supporters and opponents of the $15 minimum wage is that the phase-in period could allow regulators to make adjustments as needed to hit a middle ground where workers can earn a living wage and businesses can successfully operate and innovate without having to pass along hefty price increases to consumers. With cheers coming from one side and lawsuits expected from big businesses, this isn't the last we'll hear about this law in Seattle -- or other cities for that matter.

What I do know is that drastically boosting the minimum wage probably won't work as the law currently stands. The benefits it could provide to workers in terms of higher pay and better work satisfaction will be more than canceled out by the lack of drive for workers to improve their skill set, potentially higher prices for products and services, and a dearth of business innovation as higher employee costs cause businesses of all sizes to shun Seattle and its outlying communities.

But that's just my perspective. What's yours?

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Comments from our Foolish Readers

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  • Report this Comment On June 07, 2014, at 1:22 PM, Treborn822 wrote:

    Businesses can only raise the price of a product if they expect people are willing to pay that price. And if they expect that they already would have raised it. It has nothing to do with the wages they pay. Supply and Demand. I don't care if you pay your daughter 40 dollars an hour - you cant charge 30 dollars for a glass of lemonade at your lemonade stand. .

    Also - The common talking point of saying "Minimum wage was only meant to be temporary jobs" fails in the face of logic. If every minimum wage person in the US were magically given a 4 year degree today where would they all work? Are there 4 million job openings that are currently unfilled? And if so, would McDonald's have to close now that they have no employees left?

  • Report this Comment On June 07, 2014, at 3:35 PM, RRobertsmith wrote:

    productivity keeps going up (more robots) so wages should keep going up to match

  • Report this Comment On June 08, 2014, at 10:53 AM, sabebrush6 wrote:

    There are a lot of businesses involved with this $15 an hour wage in Seattle that can simply move their office to another location outside of the area because where the office is located doesn't matter & it would keep the current wage level thus prohibiting the high labor cost. I sure would.

    Another thing, if wait staff is getting $15 an hour, they sure don't need tips. They can kiss those tips goodby.

  • Report this Comment On June 08, 2014, at 11:11 AM, roadrunner14 wrote:

    So let me get this right.......an Unskilled worker gets $15.00 an hour, while say a Truck Driver makes $17.00 an Hour. Truck Driver has a bunch of rules, licensing, and drug testing to constantly go through. What do you think will happen here? Trucker either decides to be a Walmart greeter for say $15.90 pr hour, or to retain driver the Trucking company raises wages at a rate comparable to todays level. With that said, Trucking Company raises rates to haul freight that supplies said Walmart, thus raising prices at said Walmart, thus ultimately raising prices on Consumer. Consumer then pays more for said product, then complains at absorbently high prices. It's a vicious circle, but eventually you need to get a skill and get out of the minimum wage, plus food stamp mentallity. If you are undocumented, then you need to explain why, and how you became Undocumented. Then pay all back taxes, get documented, and pay the system your FAIR share.

  • Report this Comment On June 08, 2014, at 11:20 AM, sogole wrote:

    This will result in (1) fewer jobs (2) higer prces.

  • Report this Comment On June 08, 2014, at 11:41 AM, grandmafufu wrote:

    The one thing this article, which, by the way is quite surprisingly good, does not address------more money more taxes. That $15/hr. is NO when you realize how much more you will pay in Fed/St income tax; more on SS/Medicare as well. Also, all the lost percs such as free parking, free lunches, are now coming out of your pocket. So, tell me, what did you again? This article is based on "perception". And, so true. You perceive that $15/hr. looks so good and then reality kicks in. You will be working less hours, also. Probably loose health benefits and have to use obamacare which will break you the first time you have to go to the ER/Hospital (deductibles get paid up front first before any insurance kicks in). Once again, the unions who have pushed this have used their "sheeple" for their benefit only---now they can also demand more union fees because of what they did for you. Tips! Non-existent. So you tell me, who wins in this. Business will close or move thus eliminating money from the City coffers. That's means property taxes will go up. I wonder, are they teaching economics in HS or College any more? Because you sure wouldn't know it.

  • Report this Comment On June 08, 2014, at 11:43 AM, grandmafufu wrote:

    And, I should have checked my spelling and grammar before I hit "post". But, I think you get the message.

  • Report this Comment On June 08, 2014, at 11:45 AM, grandmafufu wrote:

    Last thought. Many who get food stamps and other State/Federal benefits will no long be eligible because of this. Well, that is at least a win for the taxpayers in general.

  • Report this Comment On June 08, 2014, at 11:52 AM, waffleguy wrote:

    Minimum wage is entry level and for those jobs that are on the bottom end of profitability. Also, what people not in business ownership/management don't understand is that pay for a job cannot exceed the worth of that job to the business. Thus, if a dish washer is worth,say, 2% of the restaurant sales (I don't know what the % is, it's just for illustration) if the cost of that job goes up, menu prices go up. That or the combination of benefit elimination, less people doing the same amount of work and menu increase. They really aren't going to net that much more because their out of pocket will go up. But I guess the unions like it because their wages are often tied to minimum wage levels.

  • Report this Comment On June 08, 2014, at 1:45 PM, mhardiman1953 wrote:

    Most business owner are greedy they want everything for themselves.they can raise prices a nickle to help pay wages. The businesses that don't want to give their employees raises let them go out of business. In would not support them.

  • Report this Comment On June 08, 2014, at 2:41 PM, dennismcbk wrote:

    There is no justification, moral or pragmatic, for paying anyone a wage that is less than the wage necessary to pay for all the fundamentals of a decent life, ie: housing, food, medical, education, clothes &c. If capitalists have been paying less than a living wage, and the general population has gone along with it, then there is no one to blame for any disruption in the economy that occurs with a higher minimum wage other than the capitalists who have been cheating their workers for years, and the general public who goes along with their cheating. If the capitalist cannot offer a product or service at a reasonable and/or acceptable price without cheating his workers, then the capitalist does not deserve to be in business. To go further, if you're the customer of a capitalist who is cheating his workers it is your moral responsibility to not continue supporting this capitalist. The greatest irony in the minimum wage debate is the fact the vast majority of Americans insist they are Christians and yet see no conflict with the immoral behavior of cheating employees.

  • Report this Comment On June 08, 2014, at 3:27 PM, jonfraer wrote:

    More and more people are avoiding fast food chains as prices are not worth what you get.

  • Report this Comment On June 08, 2014, at 6:18 PM, Disgustedman wrote:

    The only problem I see is how this hurts the retirees who are on a limited fixed income. Many rent small rooms and thus, their rent will increase and they cannot afford to move anywhere.

  • Report this Comment On June 08, 2014, at 6:20 PM, Disgustedman wrote:

    Remember this folks, most of those "Fast food joints" are NOT corp owned, but are run by small franchise operators who pay fees to the corp every year...The small independent shops will either raise prices or close and thus, hurting more people.

  • Report this Comment On June 08, 2014, at 7:46 PM, johnnya2 wrote:

    Well lets see, the highest minimum wage int he country is in San Francisco. Amazingly enough the unemployment rate in SF is 4.4%, which is considered FULL employment by most economists. Taxes, rents and parking are ALL very expensive in SF, yet businesses STILL hire people. The fact is, companies will hire if there is demand The way to INCREASE demand is to have more people paid more. Imagine you used to make $14k per year, but now make $30k per year. Can you now buy extra groceries? Maybe a new car? Maybe clothes for your kids? Maybe go to a restaurant? Maybe take a vacation? Guess what, that spending is called DEMAND. Companies like Apple which have BILLIONS in cash sitting in a bank do nto help the economy. It is lliek hoarding food, if you dont eat it, it helps nobody

  • Report this Comment On June 08, 2014, at 8:00 PM, LaryB wrote:

    Raising the minimum wage is likely to one of two things: either close businesses that can not afford to pay the higher wage; or cause those businesses to let workers go to bring their workforce into line with what they can afford to pay. Either way low wage workers lose.

  • Report this Comment On June 08, 2014, at 8:41 PM, ewalters wrote:

    The prices of things DO NOT HAVE to go up, they would go up out of revenge and greed. These corporations obviously don't have much respect for their workers, it's obvious. The starting at the bottom thing makes perfect sense, but the thing is we are becoming overpopulated, less opportunities with more people. Simply put,,,, if they would pay a FAIR LIVING WAGE, taxpayers wouldn't have to carry them anymore, people that work hard should get paid at least a LIVING WAGE. Why would you want to see a hard working person, regardless of skill level, struggle due to not being payed fairly, it affects us all in the end.

    If they raise that crap out of the prices, IT IS SIMPLY GREED, the reason we are here in the first place. Maybe we ALSO need limitations on what they can charge to keep things kosher. Everybody has to make there money, but damn, they corporate officals have BILLIONS of dollars, why the hell do they need more???? GREED, simply GREED! We need to fix it, we have kids growing up that only know what we teach them.

    WE HAVE KIDS GROWING UP THAT ONLY KNOW WHAT THEY SEE AND ARE TAUGHT!

  • Report this Comment On June 08, 2014, at 10:27 PM, RFTECH3000 wrote:

    you totally nailed it but good luck trying to explain any of this to liberals !

    its not only the managers that who make $15 a hour now who will want a raise , just about anyone out there from manufacturing workers over construction , electricians, plumbers , mechanics , all of those skilled trades want more than !

  • Report this Comment On June 08, 2014, at 10:31 PM, RFTECH3000 wrote:

    there is another point sean has left out , its a lack of employees in skilled trades that will arise in years to come !

    Why ? because there is no reason for anybody to attend a community college to become a certified mechanic or going through the troubles of becoming a licensed electrician , plumber or AC tech if you make min wage or a little more than min wage after you get done especially if you can have the same pay with little or no skills flipping burgers !

  • Report this Comment On June 08, 2014, at 10:35 PM, RFTECH3000 wrote:

    @ ewalters :

    you sound like a communist !

    nobody forces you or anyone to work at companies who pay min wage , it is not like you get drafted to work at those places , its up to you to learn skills and find a better paying job

  • Report this Comment On June 08, 2014, at 10:36 PM, RFTECH3000 wrote:

    one thing is for sure , if the min wage goes to $15 a hour then I will stop eating at mc donalds and any other fast food chain and reduce my spending at wal mart to a bare minimum , just out of protest !

  • Report this Comment On June 08, 2014, at 10:50 PM, tduaime wrote:

    Places like McDonald's Bk and Wendy's will just reduce the amount of staff and the amount of hours people will work. They will use the managers they have to cover those shifts. They will reduce everyone's hours to less then 30 per week and stop paying for medical insurance. You can only charge so much for a Big Mac and fries. As a former Director

    of Operations for McDonald's I know how the Owners

    mind thinks. Just reduce the amount of people working at one time. 7.25 per hour times 2 = 14.50 so one at 15 will cost me .50 more per hour I can raise prices by .05 and still make money but service will be slower that's about it

  • Report this Comment On June 08, 2014, at 11:01 PM, Quickwhit22 wrote:

    First, great article Sean. Well researched and written. However, I don't agree with your conclusion.

    "A $15 minimum wage completely removes workers' incentives to develop the skills needed to improve their socioeconomic outlook."

    I disagree. Wouldn't a person with more leisure time/energy/money pursue and cultivate interests that ultimately better their communities/employers? Happy workers and so forth.

    "bigger businesses like Starbucks, McDonald's, and Subway will need to boost their prices "

    Good. Hamburgers shouldn't cost a dollar anyway, unless you're using poor/hazardous/cheap materials. Plus, I was under the assumption these companies have large cash reserves, (Not sure about this though) why aren't these reserves being used instead of hoarded? And wasn't Starbucks founded in Seattle? Why would they move elsewhere?

    "think about how a large increase in the minimum wage could detract from bringing new business to Seattle"

    Hmmm, I doubt this is true. Sure you might loose the Walmart's and other vultures, but a progressive city like Seattle wouldn't market to those companies anyway.

    The health insurance aspect is worrying and I do see most employers cutting down to 30hrs. However, I still think that a 15 dollar minimum wage is necessary. A person just can't live on 8 dollars an hour.

  • Report this Comment On June 08, 2014, at 11:04 PM, johnnypoindexter wrote:

    Another option for Subway would be to make the 12" subs truly measure 9". Hey- they did it with "two by fours"!

  • Report this Comment On June 08, 2014, at 11:22 PM, johnnypoindexter wrote:

    You are going to have to raise the welfare and unemployment benefits, too. Because the peeple that live off these ecosystems historically have made more than someone who actually works for a living (AND that working poor person in many cases might truly deserve $15.00/ hr. for a minimum wage level job). The welfare queens aren't going to lay there quietly on the couch with the TV blaring and take a pay cut. As it reads in the first line of your well-written article "almost everything in life is based on perspective."

  • Report this Comment On June 08, 2014, at 11:33 PM, johnnypoindexter wrote:

    that's the liberal agenda: DO MORE HARM THAN GOOD. problem solved

  • Report this Comment On June 09, 2014, at 12:06 AM, Djinn wrote:

    If I were a business owner I'd adopt the Seahawk model. Each employee would have to re-apply for their job and compete with all those out of towners who'll be flocking to Seattle hoping to cash in. Owners will be able to pick and choose, and in some cases upgrade their staff.

    I do believe there's a very good chance of this happening. The buzz here in SW Washington is for those with retail experience to toss their hat into the ring for a Seattle job. Bottom line: the value of a Seattle employee is going to raise and those seeking employment don't have something, other then a heart beat, of value to the owner, they're toast.

  • Report this Comment On June 09, 2014, at 12:21 AM, yugo26 wrote:

    Impact on non-profits that provide work/training to the hard to employ population?

  • Report this Comment On June 09, 2014, at 1:18 AM, Macke47 wrote:

    Inflation will eat away every penny within 5 years. Dollars are just pieces of paper with a perceived value, children. The government could theoretically give every person a million dollars, but then a million dollars would be worthless. Large wage increases like this cause the inflation rate to spike, especially when skilled workers demand a commensurate increase in wages. The problem with inflation is that it overshoots, like in post WW1 Germany. Seattle residents will end up making less in real money than they were making before the increase. The ironic thing is that rich people will become richer comparatively during this high inflation time period because they put their money in investments that earn a rate of return that is greater than the inflation rate. Actually, look at the country as a whole since Obama became president to see the truth in this fact. The stock market is hitting records while we have a true unemployment rate of 14-16% because our government is spending and printing money like never before. By the time Obama is gone, $15 will probably equal less than $7.50 today. It is an exercise in futility. If you want a career in fast food, you have much bigger problems than your pay check.

  • Report this Comment On June 09, 2014, at 2:10 AM, ChMacQueen wrote:

    Fairly good article on a few points. If min wage goes to $15 then the entire scale needs to raise. Many managers and such at these places are making $15ish an hour now so their wages will need to increased as well. The cycle just goes on and on with the idea that somehow it doesn't go to the top due to the huge wage gap. But how can you expect a college grad in a skilled profession that is now making $14-16 an hour starting not to expect to be bumped up to $22-25. After all the grad went to college and has work skills.

    So many uneducated people who think that this will even the scale and raise people up. Problem is costs go up more then any min wage increase. This means in the end the only ones moved are middle class who's income stays the same as before... meaning middle class moves down.

    ALL this does is drag the middle down. Raising the min wage is NOT the answer or even a bandaid fix. It just opens the wound even bigger.

  • Report this Comment On June 09, 2014, at 2:17 AM, csucv wrote:

    I think more than anything, what you will see is a domino effect... the burger flipper now makes $15/hr... those who have education & skills making that wage right now will want a higher hourly wage... payroll costs (both wages AND employers Social Security contribution) will increase... workers making more per hour already will see the lower wages come up to their level.... more people demand higher wages commensurate to their education/training/time on the job... higher costs to provide goods and services.

    The end result?

    Within 5 years, the value of $15/hr will be the equivalent of an $8/hr job today.... INFLATION people!

  • Report this Comment On June 09, 2014, at 5:20 AM, Droppo wrote:

    Oh no! A sandwich might cost an extra .75! How will anyone ever afford that?!?!?!? Newsflash: prices have already been going up all over the country without a minimum wage increase. There is supposed to be a cycle in place where wages increase and prices increase. All we have had for decades thanks to certain people fighting against the wage increase is higher costs and no way to help pay for them. Let the cycle play out the way it is supposed to and stop doing the bidding of the businesses that just don't want to pay more.

  • Report this Comment On June 09, 2014, at 8:29 AM, plaintalk wrote:

    Hard working minimum wage earners spend all their money thus get our economy moving faster and gaining speed in recovery. They spend for food, clothe, entertainment including internet & mobile phone also for transportation. These business are owned and controlled by handful of rich people who hoard their wealth and try to black mail elected officials to create more new laws to help run business without regulations, try to run the country sitting in business executive seats. This country is slowly moving in the direction of ancient Empires and lords

  • Report this Comment On June 09, 2014, at 8:51 AM, KatZu wrote:

    Funny how flipping burgers now make more than Certified Medical Assistant and the same as LPN.

  • Report this Comment On June 09, 2014, at 12:48 PM, kenrmills wrote:

    "But there's an even greater concern as I see it. A $15 minimum wage completely removes workers' incentives to develop the skills needed to improve their socioeconomic outlook. The $15 minimum wage law (with exceptions for teenagers, who can be paid below the $15 minimum wage) acts as an instant reward to workers with fewer skills, reducing their desire to learn skills, which may be more desirable by businesses and may land them a better-paying job in the long run."

    OMG!!!!! Please stop with the ignorance. It does nothing like that. What it does do is lock out those who can't produce close to $15/hr at work. It lowers their opportunities to learn new skills and develop in the workforce. It destroys employment for younger, less skilled people.

  • Report this Comment On June 09, 2014, at 12:59 PM, TMFJCar wrote:

    The minimum wage would be nearly $22.00 if it kept pace with productivity. Of course, some of that is technology-based more than labor based. But, the skills needed to earn minimum wage are higher now than they were then too. Yes, it does hurt people currently making $15/hr, but one hopes the minimum wage folks will spend and lead to more bonuses and raises for all. Either way, I think this is interesting because regardless of what everybody's opinion is -- you don't know it until you try it. Nobody thought supply-side economics would work and nobody thought Keynesian economics would work. At the time they were used, both worked well.

  • Report this Comment On June 09, 2014, at 6:32 PM, FundManager wrote:

    Wow. This comment section is hilarious. I personally do not believe there should be a minimum wage at all. The idea that the gov't would set a price floor on a commodity is absurd, and labor is a commodity.

    But let's assume a min. wage is a good thing, why $15? Why not give everyone $100,000? Half of this country are already "takers" anyway, go big.

  • Report this Comment On June 26, 2014, at 10:02 AM, dimestop wrote:

    ...

    SO HERE'S REALITY AND "COMMON SENSE FOR YOU"...

    a. instead of ARGUING about "whose speculative THEORY" on cost increase of McDonalds...

    b. trying "looking at Australia" WHERE THE

    "NATIONAL MINIMUM WAGE" is like $16. in most large urban areas... (some people in McD's are making $22. with a bit of seniority...)

    c. So "screw the argumentive BS..."

    ...the economist who wrote this article ABOUT AN AUSTRALIAN MCDONALDS...at the wage levels I indicated above...

    d. SAID "the price of a BIG-MAC" was JUST .70 cents MORE THAN IN THE U.S. STATES...

    e. oh, and the McDonalds WAS FULL because the "high national Min Wage" FLOODED all their malls and "consumer" small biz... WITH LOADS OF "PAYING CUSTOMERS"

    f. so the BIG-MAC was so much more expensive...BECAUSE THE "high-min" wage was OFFSET by the HUGE CONSUMER TRAFFIC LEVELS... not just in McDonalds BUT IN "ALL OF RETAIL AND MALLS" ETC.

    so you DON'T NEED "THEORY OR OPINIONS"

    JUST "USE THE EXAMPLE OF AUSTRALIA"...A REAL WORLD ...REAL NUMBERS... REAL REALITY EXAMPLE...OF "HIGH NATIONAL MINIMUM WAGE" ...etc.

    oh...THEY DON'T HAVE A "REAL ESTATE CRISIS THERE EITHER...

    or ..."huge national debt and budget deficits EITHER...

    because they "didn't let a bunch of "moderated Repubs gov spend on a multi-trillion dollar war ...making expendable weapons...

    INSTEAD THEY "INVESTED IN THEIR MIDDLE-CLASS CONSUMERS".......

    putting the "money in their hands" (instead of lobby defense contractor buddies of mostly moderated Repubs)

    resulted in a THRIVING DOMESTIC ECONOMY compared to ours...

    in fact AUSTRALIA is the "only one of sixteen large Western Economies" THAT HAS little impact from the "global economic recession" ......

    the meaning and lesson being: FORGET YOUR BS ECONOMIC "THEORIES AND VESTED INTEREST HYPE FROM POLITICIANS"

    AND "JUST DO WHAT THE AUSTRALIANS ARE DOING..."

  • Report this Comment On September 14, 2014, at 12:22 PM, Bobgoebel1 wrote:

    I'm noticing everyones focus is mainly on fast food. What about retailers in the mall. Have you noticed a lot of malls are struggling to keep tenants.

    Retail has a vicious competitor and thats Amazon, Ebay, Newegg ect. Anyone who has a wholesale account with larger distributors is reselling on these sites at barley any profit. Causing a huge dent in the retail space. Raising the minimum wage will only force these retailers to close and focus more on online sales. So what!

    How many times have you walked into a store and said,"I can get this on Amazon Cheaper!" and decided to buy it online. So did 10 other people that day. Retailers are trying to compete with online, but with payroll and huge rents it making it very difficult.

    The minimum wage increasing will defiantly cause issues with retailers keeping their doors open. They cannot raise their prices to support payroll do to online pricing.

    So start getting use to staying at hope and waiting for your stuff to arrive by mail. Retail will soon disappear.

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Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2986073, ~/Articles/ArticleHandler.aspx, 9/19/2014 10:04:07 AM

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