1/02/2006

Working at minimum, living beneath it

Here's some food for thought from an article about state efforts to raise minimum wages:

Opinion polls show wide public support for an increase in the federal minimum wage, which falls far short of the income needed to place a family at the federal poverty level. Even the chairman of Wal-Mart has endorsed an increase, saying that a worker earning the minimum wage cannot afford to shop at his stores.


Right, there you go: it's blindingly obvious that Republican efforts to discourage the public will on the matter of minimum wages are just your usual plutocratic greed in action. But what about small business owners?

"Restaurants are a low-margin business," said Geoff Hetrick, president of the Ohio Restaurant Association. "A number of marginal operations which are more or less on the ragged edge right now might find this to be the straw that breaks the camel's back, especially in northern Ohio where they've had a significant loss in manufacturing employment that's taken a lot of disposable income out of the economy."

So in other words, minimum wage should be kept low so that restaurants can stay in business in areas where jobs have hemorrhaged and only the more well-off can keep eating out? Sorry, you get no sympathy here pal. Let democracy (and not obese lobbyists) alter the minimum wage as necessary to keep up with inflation, and the affordability of basic needs.

9 Comments:

At 11:45 AM, Anonymous Anonymous said...

Many workers in restaurants do not even make minimum wage. A friend's daughter just got a job at a local, no-chain restaurant as a hostess for $2.15/hour. A tip-sharing process is in place, but will it really make up the difference. Things have got to change, my brothers, and change now!

 
At 12:04 PM, Blogger DavidD said...

I used to work at Perkins... we made $2.15 an hour and if 10% of our sales didn't get us up to minimum wage they had to make up the difference... so it's not like they are slave laboring.

 
At 3:58 PM, Anonymous Anonymous said...

Mark -

Raising the minimum wage is a jobs elimination program. Labor is just like anything else. If it costs more, people will make due with less or find substitutes (maybe someplace else.)

There's no way around that.

Now recognizing that it will cost jobs to add to the minimum wage, here's a suggestion. How about a minimum wage increase ONLY for the eleven metro counties?

Anoka County, MN
Carver County, MN
Chisago County, MN
Dakota County, MN
Hennepin County, MN
Isanti County, MN
Ramsey County, MN
Scott County, MN
Sherburne County, MN
Washington County, MN
Wright County, MN

This will
-serve to preserve jobs outstate where the economy is tightest
-encourage development outside the metro corridor
-recognize the real differences in urban and rural living
-take pressure off urban sprawl

What's your thoughts on something like that?

-Censored

 
At 1:32 AM, Anonymous Anonymous said...

Why is it that when the suggestion is made that a few crumbs be tossed toward people on the very bottom of the workforce some wingnut always chimes in about what a job-killer it is?

Do they really need somebody to wipe their shoes on that badly?

I never noticed them raising a peep when rich people welfare helps the well-to-do to move their investments/industries overseas. Doesn't that have a negative impact on the economy as well?

What's up with that- do our freeper bretheren someday expect they'll make a killing and get to push brown people around like the big boys do now?

 
At 11:27 AM, Anonymous Anonymous said...

Andy -

Why does someone always mention that minimum wage increases eliminate jobs?

Because having the whole truth is better than just your meme.

So far as moving industries and investments overseas, see the thread at
http://newpatriot.org/2005/12/why-give-capital-break.html#comments

There is a very significant difference between using overseas labor (which is trade by another name) and overseas investment which is an exflow of capital.

Trade strengthens the economy where the divestiture of capital hurts.

So, how about a program to move jobs out of the cities? Anyone?

-Censored

 
At 12:05 PM, Anonymous Anonymous said...

I find this whole debate about minimum wage confusing using
Gene T.'s post as a starting point as a reflection of minimum wage reality. I am guessing your friend's daughter is working her first job, and has little or no job experience. She is also living at home under her parent(s) umbrella. That is your typical minimum wage worker. I would guess in 6-9 months after proving her worth she will get a raise and if she does not will move on to a better paying job. Again a typical path for minimum wagers. Sadly there are those who fail to realize that there are plenty of jobs that do not require complex skills sets to make multiples of minimum wage.

I will use my own daughter as an example here. She got her FIRST job at the local private little league ballfield concessions this past summer at $10/hr. While this job was temporary it worked well for her active high school lifstyle. She proved herself to her employer has been invited to return next summer, others where not. She is currently exploring other opportunities and is seeing most ENTRY level jobs are around 7-9/hr in the west the metro. Note that there is strong competion for these positions yet the employers all feel they must pay these much higher than minimum wages to get and retain quality employees. Why is that? Because the market dictates what any employee should cost. Don't pay enough and turn over or the quality of employees will cost you more than higher wages.

As part of my job I get to many customers, mostly manufacturing, many outstate it does not take long to figure out if the company pays a decent wage or not just by looking at the two measure empoloyee quality, and retention.

Dave

 
At 1:32 PM, Blogger missbhavens said...

Restaurants and other tip-generating jobs are not required to pay minimum wage. In NYC they pay $2.65 which gets totally eaten as taxes, and, if you're lucky, pays toward your health insurance.

 
At 12:43 PM, Anonymous Anonymous said...

Jobs data out today.

Unemployment is just 4.9% Is this too high? Too low? Near the non-accelerating inflation rate of unemployment?

What can be done to reduce it? Should it be reduced?

Anyone?

-Censored

 
At 4:56 PM, Anonymous Anonymous said...

Looks good to me, 108,000 new jobs is a little light but I am sure in a month or so it will be revised upward like november going from 215,000 to 305,000.

Of course lower unemployment is going to apply some upward pressure to wages. If we could get the illegal immigration under control the lower scale jobs would also show wages gains as well.

Dave

 

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