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Democrat run Seattle passed a $15 minimum wage law in 2014. Here's how it's turned out so far

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Rudy Canoza

unread,
Jan 3, 2020, 7:35:02 AM1/3/20
to
When Seattle began raising its minimum wage five years ago,
local burger joint Dick’s Drive-In experienced an unintended
effect.

Its employees opted to work fewer hours as their wages rose, a
tall order in a tight labor market.

“We thought with higher wages it would be easier to get people
to take more hours, but it’s been the opposite,” said Jasmine
Donovan, president of Dick’s. She added that the company has had
to raise prices for the first time in its history because of the
cost of labor alone, whereas in the past, food costs drove such
hikes.

Seattle’s law, which gradually increases its minimum wage to $15
an hour by 2021 from just over $9 an hour in 2014, is now at the
forefront of a national debate over the impacts of progressive
wage increases. It comes at a time when top Democratic
presidential candidates like Bernie Sanders and Joe Biden are
calling for a $15 per hour federal minimum wage as they try to
appeal to working-class voters. The federal minimum wage is
currently $7.25 an hour and has not been increased in over a
decade.

“Seattle was catalytic to the entire national movement because
what the Seattle City Council did by passing the law was show
the entire nation that $15 was not a ridiculous demand that
people were laughing at back in 2012, but an actual key piece of
policy that allowed for working people all across that city to
have more money in their pockets that they spent in their local
neighborhoods and then grew the economy and local business as a
result,” said Mary Kay Henry, president of the Service Employees
International Union, which launched the Fight for $15 and a
Union campaign.

Businesses like Dick’s have seen their costs go up. Dick’s pays
above minimum wage, with some locations starting workers at $17
and $18 an hour, and most workers are students in their 20s.
Benefits like 401(k) plans and health insurance are also
available to workers regardless of the number of hours worked.
But higher minimum wages citywide pressure employers to increase
pay even if they are already above that threshold, in order to
compete for talent.

Meanwhile, the Seattle law has been life changing for workers
like Martin Johnson, who lobbied for higher pay with the
advocacy group Working Washington. He works three minimum wage
jobs — as a temporary cook on game days at the city’s stadiums,
as a janitor at Costco on the overnight shift and as a handyman
in his own small business. The raise brought with it more
dignity for workers and boosted morale, he said.

“Instead of being paid $9 an hour, you’re getting $15 an hour to
do the same work. You feel better about yourself — you feel
appreciated,” Johnson, 54, said.

Overall, implications for businesses and workers alike have been
nuanced. While there are benefits for workers who saw higher
pay, others may have seen fewer hours. Some businesses
flourished, while others struggled in the face of greater
regulation and intense competition in the city’s hot economy.

No consensus among economists
Studies of the effects of the Seattle wage hike have had
different findings: A 2017 University of Washington study found
that while wages went up, hours worked declined, resulting in
less pay for low-wage workers. But in a follow-up published last
year, the authors noted that this wasn’t the case for everyone,
and experienced workers in low-wage jobs saw their earnings rise.

Another from researchers at the University of California,
Berkeley released in 2018 found that the wage hikes increased
pay and have not led to job losses. The Berkeley and Washington
studies measured different groups of workers, with varying
results.

The conflicting studies highlight a broader debate about what a
$15 federal minimum wage might do for businesses and workers
nationwide. Federal Reserve Chairman Jerome Powell even touched
on the issue during his testimony before the House of
Representatives this summer saying. “there is no consensus among
economists … economists are all over the place on this.”

One of the challenges of measuring Seattle’s experience with the
minimum wage hike is that the city’s economy is in a period of
robust growth. Since the wage increase began in 2015,
Seattle/Tacoma’s job growth has slightly outpaced the state of
Washington as a whole, at 12.9%. The city’s population has
increased some 13% over 2015, according to the Washington state
Office of Financial Management. Average hourly earnings were
$39.38 in October, an increase of 14.5% from the same month in
2015.

That prompts a question: Are higher wages necessary due to the
hot economy, or has the economy continued to grow due to higher
pay?

Mixed results for businesses
When the minimum wage increase in Seattle passed, Chad Mackay,
CEO of Fire & Vine Hospitality, a Pacific Northwest hospitality
group, he decided to reevaluate his business model.

“When we projected out the minimum wage increases, and the loss
of a tip credit [which allows employers to count tips toward
minimum wage], we realized we would be functionally bankrupt if
you were to fast forward seven years in the future. We decided
the business model was broken, and it’s time for us to change,”
Mackay said.

Fire & Vine has long paid above minimum wage in the front and
back of house due to demand for talent in the market and the
company’s beliefs on professional pay. The company moved to a
commission-based model, with a 20% service charge for diners.
Servers are paid out an hourly wage and a 15% commission and can
make $70 or more per hour in the Seattle market, up from some
$45 an hour earlier. Guests can also leave extra tips for
servers if desired. Those in the back of the house like
dishwashers begin between $17 and $20 an hour — some 40% over
where they were prior.

The wage increases haven’t hurt his business: He’s nearly
doubled in size, with some 600 workers today with 12 locations
under management, during a time when other restaurants have
closed their doors.

“Once we went to that model, I have never worried about minimum
wage. And I’m not sure there’s a restaurateur in Washington
state or in California or New York, that can say, ‘We left
behind minimum wage as an issue for our company,’” Mackay said.

But while some businesses have thrived, others have faced
challenges in the face of Seattle’s changing economy.

Matthew Dillon, owner of Sitka & Spruce, says that he believes
the minimum wage should be much higher than $15 an hour, which
is why he also pays workers above that threshold. But when his
lease came up, the James Beard Award-winning chef decided it was
time to close his doors after more than a decade in business,
serving the restaurant’s last dinner on New Year’s Eve. Passing
off costs to consumers in an environment where his rent was
$16,000 per month including taxes and fees, and where both food
and labor costs are also on the rise, felt unsustainable. He has
other businesses that are still up and running in the area.

“Wages are going up, the price of food is going up, [and] my
property taxes that I have to pay the landlord are going up. My
rent is going up for my staff, or staff that was here feels
like, ‘Well I can’t be in the city anymore, so you have to find
someone to replace me,’” he said. “That’s really hard. The cost
of that, just working through that as a business owner, is going
up.”

It’s an issue Eric Tanaka is also contending with. The partner
at Tom Douglas Seattle Kitchen says the group also decided not
to renew a lease for a building that houses three of its
restaurants — TanakaSan, Assembly Hall and Home Remedy. Moving
forward, Tanaka says he may consider less labor-intensive
models, as well as concept and menu tweaks, within the group’s
different businesses as costs have gone up and talent can be
tough to find in the city. The company pays above minimum wage
and offers benefits for those working more than 25 hours a week.
It recently settled a class-action suit with its employees over
service fee charges.

“I think as we start to look at future planning, we are
definitely looking at restaurant models that take less labor,”
Tanaka said.

That could be tough given that his restaurants make things from
scratch. “It’s hard to be handmade without the hands. But we are
looking at different ways to leverage those hands,” Tanaka said.
“It’s a challenge every day because there are less and less
people who want to get into our industry.”

In other words, it did more fucking harm than good!

Democrats are stupid.

https://www.cnbc.com/2020/01/02/seattle-passed-a-15-minimum-wage-
law-in-2014-heres-how-its-turned-out-so-far.html

BeamMeUpScotty

unread,
Jan 3, 2020, 10:41:32 AM1/3/20
to
On 1/3/20 7:26 AM, Rudy Canoza wrote:
> When Seattle began raising its minimum wage five years ago,
> local burger joint Dick’s Drive-In experienced an unintended
> effect.
>
> Its employees opted to work fewer hours as their wages rose, a
> tall order in a tight labor market.
>
> “We thought with higher wages it would be easier to get people
> to take more hours, but it’s been the opposite,” said Jasmine
> Donovan, president of Dick’s. She added that the company has had
> to raise prices for the first time in its history because of the
> cost of labor alone, whereas in the past, food costs drove such
> hikes.
>
> Seattle’s law, which gradually increases its minimum wage to $15
> an hour by 2021 from just over $9 an hour in 2014, is now at the
> forefront of a national debate over the impacts of progressive
> wage increases. It comes at a time when top Democratic
> presidential candidates like Bernie Sanders and Joe Biden are
> calling for a $15 per hour federal minimum wage as they try to
> appeal to working-class voters. The federal minimum wage is
> currently $7.25 an hour and has not been increased in over a
> decade.
>

The question should be, how much has the average workers wage risen in
the past decade.... and the minimum wage should either be either raised
by that percentage, or the NATIONAL minimum wage should be removed which
is probably the way to go since Your wage is personal and NOT PUBLIC.
In fact releasing that information to anyone is illegal in most states
and there may even be Federal laws making it illegal.

> “Seattle was catalytic to the entire national movement because
> what the Seattle City Council did by passing the law was show
> the entire nation that $15 was not a ridiculous demand that
> people were laughing at back in 2012, but an actual key piece of
> policy that allowed for working people all across that city to
> have more money in their pockets that they spent in their local
> neighborhoods and then grew the economy and local business as a
> result,” said Mary Kay Henry, president of the Service Employees
> International Union, which launched the Fight for $15 and a
> Union campaign.

NO, the $15/hr minimum was ridiculous and we're all laughing at Seattle
and the Liberals. Look what they did to Seattle and California....
they're reaching 3rd world status. Rich and poor and the poor live on
the sidewalks. A $15/hr minimum wage won't get anyone off the streets,
because creates no jobs. It does the opposite.

>
> Businesses like Dick’s have seen their costs go up. Dick’s pays
> above minimum wage, with some locations starting workers at $17
> and $18 an hour, and most workers are students in their 20s.
> Benefits like 401(k) plans and health insurance are also
> available to workers regardless of the number of hours worked.
> But higher minimum wages citywide pressure employers to increase
> pay even if they are already above that threshold, in order to
> compete for talent.
>
> Meanwhile, the Seattle law has been life changing for workers
> like Martin Johnson, who lobbied for higher pay with the
> advocacy group Working Washington. He works three minimum wage
> jobs — as a temporary cook on game days at the city’s stadiums,
> as a janitor at Costco on the overnight shift and as a handyman
> in his own small business. The raise brought with it more
> dignity for workers and boosted morale, he said.
>
> “Instead of being paid $9 an hour, you’re getting $15 an hour to
> do the same work. You feel better about yourself — you feel
> appreciated,” Johnson, 54, said.

Until they fire you because toy can't do the work of 2 people.
They will hire only the top performers and the mentally ill or the slow
witted or even the elderly who don't perform at 200% of the average low
wage workers won't be kept on the payrolls due to loyalty and
appreciation for their years of hard work, they'll be fired and replaced
where two of the less efficient $9/hr workers will be replaced with one
$15/hr saving the business owner $3/hr.

But Liberals don't care about those slower less capable workers do they?
What they want is Democrat votes and there are fewer of the mentally ill
and slow and elderly workers that will be voters so the Democrats think
that it's a winning strategy to champion the the Socialism and higher
wages and then put, all the infirm and the dullards who can't keep up in
a faster more demanding and higher paid world, on disability and have
them dependent on the FREE STUFF that the government hands out rather
than allowing them the dignity of earning what they can to make their
own way. Instead Democrats want them totally dependent on governmnet
tax dollars. Government meddling is causing more problems than it's
solving.


>
> Overall, implications for businesses and workers alike have been
> nuanced. While there are benefits for workers who saw higher
> pay,

NOT from the economy, they saw higher pay that was disconnected from
profits and workers efficiency. Is it any wonder that the development
of *Artificial Intelligence* for minimum wage jobs has been fast
tracked, it now pays for its self. They even created an AI FAST FOOD
BURGER FLIPPER.... Putting even more Democrats out of work. Why did
they do that, was it because the HUMAN BURGER flippers all became
Artificial Intelligence repair persons.... no, those flipper jobs will
be gone and the dullards that flipped burgers for $15/hr don't work on
AI robotics..... and with the new self cleaning toilets.... they can't
even get a minimum wage job cleaning toilets in the near future.

The Liberals are speeding up the collapse of society with their extreme
demands on minimum wage and even with the idea of a NATIONAL minimum
wage which is a ridiculous idea in the first place.




> others may have seen fewer hours. Some businesses
> flourished, while others struggled in the face of greater
> regulation and intense competition in the city’s hot economy.
>
> No consensus among economists
> Studies of the effects of the Seattle wage hike have had
> different findings: A 2017 University of Washington study found
> that while wages went up, hours worked declined, resulting in
> less pay for low-wage workers. But in a follow-up published last
> year, the authors noted that this wasn’t the case for everyone,
> and experienced workers in low-wage jobs saw their earnings rise.

As I said above, those that can produce and aren't dullards get to keep
the jobs and are required to have a high output and those that can't for
reasons of age or mental defect are left behind and have to be fired to
keep the company from going out of business.

>
> Another from researchers at the University of California,
> Berkeley released in 2018 found that the wage hikes increased
> pay and have not led to job losses. The Berkeley and Washington
> studies measured different groups of workers, with varying
> results.
>
> The conflicting studies highlight a broader debate about what a
> $15 federal minimum wage might do for businesses and workers
> nationwide. Federal Reserve Chairman Jerome Powell even touched
> on the issue during his testimony before the House of
> Representatives this summer saying. “there is no consensus among
> economists … economists are all over the place on this.”
>

The first thing to remember is that DEMOCRATS ARE LIARS....

If you haven't found the lies in what a Liberal told you, then you
didn't dig deep enough.

*Liberalism is unsustainable, self destructive and contradicting*


> One of the challenges of measuring Seattle’s experience with the
> minimum wage hike is that the city’s economy is in a period of
> robust growth. Since the wage increase began in 2015,
> Seattle/Tacoma’s job growth has slightly outpaced the state of
> Washington as a whole, at 12.9%. The city’s population has
> increased some 13% over 2015, according to the Washington state
> Office of Financial Management. Average hourly earnings were
> $39.38 in October, an increase of 14.5% from the same month in
> 2015.
>
Democrats think Mississippi should pay $15/hr to the burger flippers
because SEATTLE IN WASHINGTON STATE has a $40/hr average wage? But won't
all the BURGER FLIPPERS in Mississippi just move to SEATTLE to get paid
$15/hr? Why is Mississippi needing to pay it if SEATTLE is paying it.

> That prompts a question: Are higher wages necessary due to the
> hot economy, or has the economy continued to grow due to higher
> pay?
>

AAAhhhheeeemmmmm! wages going up everywhere indicates that at least a
percentage of that rise in minimum has been eaten-up by the NATIONAL
income increases since it was passed, meaning that is was too high when
it was passed. The question is whether the $15.00/hr is voluntarily
being increased to $18 or $20/hr for minimum wage jobs to keep up with
the NATIONAL increase in wages. If so then there was no reason t raise
minimum wage in the first place because wages would have risen without
the minimum wage. And if NOT then the Minimum wage is still too HIGH
for what the workers produce. Considering the HOT economy and the
shortage of workers for jobs the pay should be above minimum wage in
every location. Because businesses can't afford to NOT have workers, and
to get them it takes more than the NATIONAL minimum wage is according to
SEATTLE, taking more money than the $7.35/hr NATIONAL minimum wage.

This means that thanks to the HOT economy the NATIONAL minimum wage may
soon be able to be raised... but in reality that will still cut some
workers from the work force and put them on GOVERNMENT SUBSIDIES.

> Mixed results for businesses
> When the minimum wage increase in Seattle passed, Chad Mackay,
> CEO of Fire & Vine Hospitality, a Pacific Northwest hospitality
> group, he decided to reevaluate his business model.
>
> “When we projected out the minimum wage increases, and the loss
> of a tip credit [which allows employers to count tips toward
> minimum wage], we realized we would be functionally bankrupt if
> you were to fast forward seven years in the future. We decided
> the business model was broken, and it’s time for us to change,”
> Mackay said.
>
> Fire & Vine has long paid above minimum wage in the front and
> back of house due to demand for talent in the market and the
> company’s beliefs on professional pay. The company moved to a
> commission-based model, with a 20% service charge for diners.
> Servers are paid out an hourly wage and a 15% commission and can
> make $70 or more per hour in the Seattle market, up from some
> $45 an hour earlier. Guests can also leave extra tips for
> servers if desired. Those in the back of the house like
> dishwashers begin between $17 and $20 an hour — some 40% over
> where they were prior.
>

But NOW the people working lose income and the business will collapse if
the foot traffic of the business slows down... they will be some of the
first to go when the economy is NO longer HOT. And a rural business
would never have the foot traffic to support those prices and the
commissions of those workers. SO the business will never open in a
rural setting. That will cost the rural workers jobs, they'll become
homeless living on the STREETS of SEATTLE rather than working home
owners out in rural areas. The LIBERAL SOCIALIST model has it's flaws.....

> The wage increases haven’t hurt his business: He’s nearly
> doubled in size, with some 600 workers today with 12 locations
> under management, during a time when other restaurants have
> closed their doors.
>

Then it's probably NOT the minimum wage but rather the heavy populated
areas and the type of food that they have and where they opened
stores.... expanding in a burger market in a low population area would
be less likely, so do we want politicians and their silly minimum wages
and taxes deciding what business models are created... won't that create
reactionary models that are less efficient and waster energy trying to
subvert the legal jargon in the new laws rather than concentrating on
the end product being better?

> “Once we went to that model, I have never worried about minimum
> wage. And I’m not sure there’s a restaurateur in Washington
> state or in California or New York, that can say, ‘We left
> behind minimum wage as an issue for our company,’” Mackay said.

They did it to avoid the minimum wage laws, I just said that didn't I?

>
> But while some businesses have thrived, others have faced
> challenges in the face of Seattle’s changing economy.
>
> Matthew Dillon, owner of Sitka & Spruce, says that he believes
> the minimum wage should be much higher than $15 an hour, which
> is why he also pays workers above that threshold.

Then it's NOT minimum wage is it.... there is no limit on paying people
over minimum wage.... so what he pay people is irrelivan't unless it's
under or at minimum wage.

> But when his
> lease came up, the James Beard Award-winning chef decided it was
> time to close his doors after more than a decade in business,
> serving the restaurant’s last dinner on New Year’s Eve. Passing
> off costs to consumers in an environment where his rent was
> $16,000 per month including taxes and fees, and where both food
> and labor costs are also on the rise, felt unsustainable. He has
> other businesses that are still up and running in the area.
>
> “Wages are going up, the price of food is going up, [and] my
> property taxes that I have to pay the landlord are going up. My
> rent is going up for my staff, or staff that was here feels
> like, ‘Well I can’t be in the city anymore, so you have to find
> someone to replace me,’” he said. “That’s really hard. The cost
> of that, just working through that as a business owner, is going
> up.”

How many people did that business closing contribute to the homeless
problem?

>
> It’s an issue Eric Tanaka is also contending with. The partner
> at Tom Douglas Seattle Kitchen says the group also decided not
> to renew a lease for a building that houses three of its
> restaurants — TanakaSan, Assembly Hall and Home Remedy. Moving
> forward, Tanaka says he may consider less labor-intensive
> models, as well as concept and menu tweaks, within the group’s
> different businesses as costs have gone up and talent can be
> tough to find in the city. The company pays above minimum wage
> and offers benefits for those working more than 25 hours a week.
> It recently settled a class-action suit with its employees over
> service fee charges.
>

They can offer what they believe they can afford over minimum wage, that
has zero to do with minimum wage.

> “I think as we start to look at future planning, we are
> definitely looking at restaurant models that take less labor,”
> Tanaka said.

Artificial Intelligence burger flippers....

>
> That could be tough given that his restaurants make things from
> scratch. “It’s hard to be handmade without the hands. But we are
> looking at different ways to leverage those hands,” Tanaka said.
> “It’s a challenge every day because there are less and less
> people who want to get into our industry.”
>

Meaning fewer human workers.... Something I've said here for years. And
as I said, instead of a minimum wage, the income tax on humans should be
made illegal since humans can't make a profit by selling their life,
slavery makes a profit from selling someone's life and their work... but
the person who is the slave is making no profit form their work.

It's the same with taxing since taxes are a form of slavery.... and
since the person working is being forced to turn over their time and
energy in the form of cash then they have been sold into 10% or 20% or
30% slavery as their income is taken and they have no profit or income
from their own labor, because it is an equal trade of labor for
something else. There is no income or profit and taxing a non profit is
wrong just as the tax code its self suggests. Which is why you file as
a non profit corporation if you want to live under the rules of the IRS
that make is legal for a corporation to be non profit and tax exempt.


> In other words, it did more fucking harm than good!
>
> Democrats are stupid.
>

That's typical of Democrats. They help people, but it ends up hurting
the people they say they're helping, and usually it harms many other in
the process.


> https://www.cnbc.com/2020/01/02/seattle-passed-a-15-minimum-wage-
> law-in-2014-heres-how-its-turned-out-so-far.html
>


--
That's Karma

Repeal the Patriot Act and close down the FISA COURT.... it's worse for
America than the terrorists it was set up to deal with.
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