$15 Minimum Wage = Small Business Death Sentence

$15 Minimum Wage = Small Business Death Sentence

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Recently some cities have enacted a $15.00 per hour minimum wage piggy backing on the president signing a $10.10 minimum wage order for federal “vendors.” Not employees, just “vendors.” The cities decided they knew better and dealt a death blow to an already fragile economy. Many small businesses, and fast food and hospitality-based businesses need inexpensive workers to ensure they keep costs down on food and services that otherwise most Americans wouldn’t buy. That’s right. Americans want bargains. They don’t want $12 hamburgers and a $14 rootie-tuttie pancake plate, or a $150 a night Motel 6 room.

Most of those screaming about the minimum wage are those who A.) will eventually get dues from it (read: union) or B.) think the world revolves around them and that they should get $15.00/hour for making my “½ caff, decafe, macchiato over sugared” coffee incorrectly. But that’s not the point. The point is that, most of the businesses targeted here are franchise business; Subways, IHOPs, and McDonalds, just to name a few.

Franchises make very little money until you own several of them. Franchise owners are mom and pop stores where they mortgage their homes, spend their savings, and, usually, are the last to take a paycheck to ensure everyone else gets paid first.

Now, let me pause to say to those of you who are going to email or write me about how much these businesses are making. If you’ve never have had a business yourself (with multiple employees), I will say, in the immortal words of Archie Bunker, “stifle it,” and in my words, “go pound sand,” you have no more standing than someone who doesn’t vote complaining about our leaders.

If you think that raising the minimum wage from $8.00 plus per hour to $15.00 per hour won’t affect mom and pop you have a counting problem. Businesses figure out how many people they need to run the business and turn a profit. Let’s say the number is 10. You almost double wages by raising to $15.00/hour. That means on paper it’s like doubling the workforce (without the increased manpower), yet the business has already determined that they can’t afford that many employees. The bottom line is, some workers will have to go! It’s bad enough that most jobs created these days are part-time simply because most businesses can’t afford Obamacare and are uncertain of the economy. So we end up with more lost jobs.

On what planet does that make sense? And what about the stores that are on the outskirts of those cities implementing the increase? Do you think many will drive an extra few miles to pay less for a hamburger or gas or services, especially in today’s economy? Yes, of course they will! So how is that going to help the already struggling businesses who are now mandated the $15.00/hour minimum wage? It won’t!

In my area we have had several restaurants shutdown due to a lack of traffic to keep them open, even though they were always packed, with a waiting line! Eating establishments are giving out coupons by the truckload, buy one get one, get a free dessert, Tuesdays kids eat free. These are loss leaders hoping people will come in and buy more booze or items not on special. Guess what? When people are hurting free is all they can afford.

In Seattle the airport has already raised its minimum wage to $15.00/hour. It’s going into effect January 1st, 2015. Employees are already looking at how to spend it. Yes, that $8.00 beer will now cost you $12.00 and that Pizza Hut Mini $12.00 pizza will now cost you $18.00. Great! And now, airport vendors say they are looking for ways to cut employees! More unemployed. Good job Mr. Obama. The only jobs you seem to be creating are the ones at the Unemployment Offices to handle the influx of people. Thanks.

Several eatery chains and two hotel chains have shelved plans to build and open new places. Once again, thank you Mr. Obama. A few hundred building jobs lost, a few hundred maintenance jobs lost, and while pushing away business, in the process you’ve taken down a whole bunch of small mom and pop support service businesses.

A socialist who won a seat on the Seattle City Council said she will fight hard (I will not degrade this article with her name) to get a $15.00/hour wage for the entire city! Just lunacy.

What will it take to get you lefties to see what your plans do to people? How many jobs are lost? How many families have to cut back on food and services? How many now can no longer afford healthcare? Even when given proof that these things are happening, you ignore it. You guys are like Bagdad Bob standing at the podium, bombs going off all around while he is saying, “We have the enemy defeated. outside the city walls all is well. Victory is near.” You need to open your eye to reality.

Americans, get a grip, or you are going to lose it… Let the soup lines begin!

  • zrevtom

    minimum wage goes from say 8 to 15 dlrs for a new employee
    employee with two years experience making 12 dlrs. does he stay the same or does it go to 15 dlrs and how does he feel when a new person comes in and makes more or the same as he does.
    these idiots who want to give something to others do not feel the consequences of their actions because it is not coming out of their pocket. I had a new guy come in to work for me and his salary was only 4,000 less than mine after 17 years working for that company, how do you think I felt or anyone, no appreciation for the years. It depends on the conditions of employment, they filled a need and they had to pay up. but someone out of high school starting at the same level as a trained experienced and longtime employee, just not right and morally wrong

  • jimeckland

    I think over a couple of years or so the Economy will correct for the higher wages….I also don’t think a $1.69 Double cheesesburger rising to $2.50 will be a major problem. The competition will be operating under the same conditions…. The U.S. Constituition gives no authority to The Federal Govt. to establish a Minimum wage among the general population, but the State Constitutions allow more…. It’s important that our economy produce good-paying jobs and High Legal and illegal Immigration forces Labor rates down !!! Let’s moderate Immigration torestore the Natural Labor Market and Minimum wage will no longer be an issue !!

    • Ed Portela

      Wow, Jimeck, you ARE a REAL nincompoop !
      “$1.69 cheeseburger increasing to $2.50″ and that will be the only consequence; that was a good one !
      And when the $2.50 cheeseburger goes to $9.50, don’t worry ! The competition (or whatever was left of it), according to you, “will be operating under the same conditions”. (ANOTHER good one, you iidddiott !!)
      A fruitfly has a tiny brain, …. and you, sir, are “operating under the same conditions”.
      Any of you who feel like scolding me for comparing this iiddiott’s brain to a fruitfly’s, save yourself the trouble: I KNOW I should not be doing that, and that it constitutes bad manners; but I can’t help myself – MMMORRONNSS always make me lose my patience ….

      • jimeckland

        Ed,
        You can’t make an intelligent comment without the name-calling.???…At $9.50 there will be few people buying them.. Even if wages double, that would mean prices would rise at most by double which would mean $3.38….in my example…. Let’s stick to civil comments please. I don’t recall supporting a $15 Minimum but $10-12 /hr. wouldn’t keep me up at night.

        • Pam Dunn

          You DID NOT make an “intelligent comment”. It was a rather asinine comment of total ignorance about economics and business.

      • boone1

        Sir you are doing just fine keep up the good work on this moron.And by no doubt he is more then an idiot.I can’t say here they won’t print it.

    • Pam Dunn

      NOT very bright are you; QUIT THINKING, it’s NOT working for you.

      • boone1

        Pam this guy has been living with mom an dad to long knows nothing about economics and business or how they are run.

    • Destry

      The states may have the authority to establish minimum wages for the state, and whether or not the federal government has that authority is another question. But the real question as it applies specifically here… do individual cities, towns, villages, etc. have the authority to establish a higher minimum wage then the state in which they are located?

    • boone1

      Damn boy lay off that Obama cool-aid it’s killing your stupid brain you moron liberal..

  • fideux

    I needed a job and took a job making considerably less than I got paid per hour on the job I had gotten laid off from. The new employer knew I was desperately in need of a job and basically, took advantage of me. After working for him for two years, I had gotten a few raises and was back up to the scale other shops were paying. Then, my boss needed another mechanic and hired this new guy with little or no experience on at the same rate I had recently been raised to. I asked my boss why he did that (this new guy couldn’t fix anything and had to use my bosses tool because he hardly had any) and my boss said “because I’m really hurting for mechanics”. I did the reasonable thing and quit two days later moving my 50k worth of tools to my new job that included better benefits and $1.80 more per hour!
    BTW, cross Seattle off any possible travel destinations for me!

  • Sunshine Kid

    Prior to 1900, inflation was pretty much flat – there wasn’t any to speak of. Then, in 1938, the USA decided to make the minimum wage twenty five cents per hour. Yes, there had been some inflation issues up to that point, but they were mostly tied to the government/banking and market manipulation by private and government agencies. How does minimum wages affect inflation? Well, here is a comparison: In 1950, the cost of a 3 Musketeers candy bar was five cents, and the minimum wage was seventy five cents per hour, or 25 candy bars that were 3″X2″X1″ in size. I haven’t bought a 3 Musketeers bar for many years now, but I will bet that A) they are much smaller and B) you could not get that many for one hour’s wage.

  • Destry

    Two things about his item that need to be clarified. One is that in Washington State, including the cities of SeaTac and Seattle, where the $15/hour minimum wage has been made into law, the minimum wage is already the highest in the nation… $9.32/hour indexed to inflation. The second is that the $15/hour minimum wage does not effect Seattle-Tacoma (Sea-Tac) International Airport because a judge found that the airport, operated by the Port of Seattle, is a separate municipality not subject to the minimum wage law passed by an initiative to the people in the neighboring city with the name of SeaTac.

  • http://www.therealside.com/ Joe Messina

    Can we PLEASE keep the name calling to a minimum! Thanks! Spirited colorful conversation yes, don’t lower yourself to name calling, thanks!

  • thebearded1

    Living Wage has been an issue for the past 40 years, it is an outgrowth of capitalism gone crony with the dollar practically worthless and people being treated in the workplace like disposable parts. Read all about job satisfaction (for those who can actually get hired or find work) and the results will be chilling, all because of demands such as on call 24/7, no respect for the employee, pathetically low wages forcing some to work 3 jobs just to attempt to survive…this is the land of opportunity? Sounds and looks more like forced labor hell bent on elimination of people and jobs. THAT is the America I’ve seen devolve, both as employee and owner of my own human resource agency back 20 years ago. I warned sharply not to go down this road, and here we are: illegals work for criminally less wages and replace the American worker who should have opportunity for decent, quality work (and production of quality goods, if most businesses actually cared). Don’t gripe about people not wanting to work: they don’t want to be enslaved to poverty and mistreatment and get that their quality of life has been shockingly altered by the new business model. Corporate Fascism is alive and well with its prison labor flourishing and at rates which throw us back to the Great Depression. So how am I to feel sorry for all this? Greed kills, thank you economic class warfare, and it’s in our face. Hint: take a lesson from Ben & Jerry’s; their model was the lowest paid person vs. them had a pay gap of 1:7. What’s the pay gap at the baseball field or the Fortune 500? I’ve stopped counting the zeros. Prediction? It’s all going to collapse and sorrows will escalate…but then, that serves the interests of some quite well with dead souls and gross maliciousness.