Skip to main content

Waitress holding salads.
Here's another example to point to when opponents of a higher minimum wage claim that it would cost jobs. The minimum in San Jose, California, has gone from $8.00 an hour to $10.00 and then $10.15, and University of California-Berkeley economist Michael Reich has been studying the results:
[The minimum wage increase] directly and indirectly affected 70,000 of the city's 370,000 workers, Reich says.

San Jose restaurants, which Reich says were most affected by the pay increase, raised menu prices by an average 1.75%, according to his study. He says there has been no discernible impact on employment.

The unemployment rate in the San Jose metro area, in fact, has fallen to 5.4% from 7.4% in March 2013. The San Jose Downtown Association says the number of restaurants in the district has increased by 20% the past 18 months.

So 70,000 people have gotten a raise, unemployment has fallen, the resulting price increase is 1.75 percent in the industry most affected, and the number of businesses in that most-affected industry is actually growing. Some restaurant owners say they've been hurt by the increase, but others have been surprised by how well it's gone:
Chuck Hammers, who owns five Pizza My Heart outlets in the city with about 115 employees, says he was panicked until he realized the pay hike would also affect his competitors. To offset a 4% increase in costs, he raised the price of pizza slices by 8%, or 25 cents for a $3 slice of pizza. "Ninety-five percent of customers didn't even notice," he says, adding that his sales were unaffected.
As always, there is more going on economically in San Jose than just a minimum wage increase. But this example joins a long list of others—like strong small-business job growth in Washington, the state with the highest minimum wage—showing at least that a higher minimum wage does not, by itself, cost jobs. And of course, for the 70,000 workers who got a raise, it means the ability to get a cracked tooth fixed or find a place to live on their own or eat out occasionally.

Originally posted to Daily Kos Labor on Mon Jun 16, 2014 at 08:57 AM PDT.

Also republished by Silicon Valley Kos, PostHuffPost: Connection-Conversation-Community , and Daily Kos.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  Chuck Hammers may be missing the point. (13+ / 0-)

    "To offset a 4% increase in costs, he raised the price of pizza slices by 8%".

    •  Also, he "panicked" until he realized (15+ / 0-)

      that his competitors also had to comply? As in, there was a gap of time involved in this blatantly obvious situation?

      I'm living in America, and in America you're on your own. America's not a country. It's just a business.

      by CFAmick on Mon Jun 16, 2014 at 09:46:53 AM PDT

      [ Parent ]

      •  Hmmm (7+ / 0-)

        I am not shocked that his first focus was on the obvious impact on himself rather than the obvious impact on everybody.  At least he came to the realization.  Listen to some republicans or frankly, all Republican politicians and a lot of GOP party members - they still don't get it.  

        And when confronted by the evidence that disaster did not strike and come to think of it more money was infused into the local economy and that rising tide did indeed lift all boats.  Well then there's always BENGHAZZIII!!!!!!

        "I'm not left wing because i'm ideological, or passionate, or angry. I'm left wing because I'm informed." - Mikesco

        by newfie on Mon Jun 16, 2014 at 10:10:50 AM PDT

        [ Parent ]

        •  People who can afford to eat out...can afford (1+ / 0-)
          Recommended by:

          to pay a bit more, but aren't the waitstaff still paid something like $3.00 an hour, because they get tips?

          The back of the house would seem to get a better deal out of this, but almost every place I worked at for 30 years paid above minimum to begin with, & I'm kitchen-guy extrordinaire, so I figured I deserved what they paid.
          I don't recall actually ever needing to ask for a raise.

          If corporations are people now, can we force them to pay more into their pensions?

          •  I think that may not be the case in San Jose (1+ / 0-)
            Recommended by:

            I know that San Franciscan restaurant workers don't get the "OK you get tips, so here's $2.15 an hour" thing that folks in other states get--they have to get minimum wage for their hourly. I'm not 100% sure, but I think that's a California rule, not just a San Francisco rule.

            •  California is one of a handful of states (3+ / 0-)
              Recommended by:
              Whamadoodle, LeftCoastTom, hbk

              which require tipped employees to be paid the full state minimum wage AND have a state minimum wage higher than federal.

              Here is the tipped minimum wage in each state:

              A majority of states no longer allow the federal minimum of $2.13 for tipped employees, but in almost all states a lower wage than for untipped employees is still allowed.

              Iron sharpens Iron. Normal is a dryer setting. STOP illegal immigration NOW! -- Make it LEGAL. If Corporations are People--Let's draft them.

              by benamery21 on Tue Jun 17, 2014 at 11:29:52 PM PDT

              [ Parent ]

      •  Chuck took advantage of the law to increase his... (4+ / 0-)

        profit margin. Think a 1.75 percent increase (as noted in diary) is too high. Productivity increases with better wages as well as good karma.

        Maybe market forces will prevail or Chuck's pizza slice price was too low in the first place.

        •  Makes pricing easier though. (5+ / 0-)

          I'd rather the price go from $3 to $3.25 than from $3 to $3.12.   That sort of pricing tends to stand out more.

          "He who fights monsters should see to it that he himself does not become a monster. And if you gaze for long into an abyss, the abyss gazes also into you."

          by Hayate Yagami on Mon Jun 16, 2014 at 11:16:03 AM PDT

          [ Parent ]

          •  O.K. makes sense. 1.75% of $3 is ~a nickel... (2+ / 0-)
            Recommended by:
            thanatokephaloides, Jon Sitzman

            so how about $3.05. My concern is puggy economists will use this kind of data to justify their opposition.

            •  Well (3+ / 0-)

              "puggy"  (not sure what that means) economists will use any kind of data to justify their opposition.  But the facts remain.  The employees have more money, unemployment decreased and this employer raised his prices slightly and saw no negative effect on sales - and not that is sales not profit so if he sold 1000 slices a week before he is still selling at least 1000 slices.  The local economy did not collapse. His customers did not get driven away in droves.  And we have a portion of the population that is a bit closer to a realistic living wage.

              "I'm not left wing because i'm ideological, or passionate, or angry. I'm left wing because I'm informed." - Mikesco

              by newfie on Mon Jun 16, 2014 at 11:46:16 AM PDT

              [ Parent ]

            •  Two points. (2+ / 0-)
              Recommended by:
              oldmaestro, SGA

              First, the average for all restaurants was 1.75%. That means some were less and some were more.

              Second, his cost of labor increased 4%. It took an 8% increase in one menu item to offset the increased cost.

              Obi Ben Ghazi to House Republicans: "Use the Farce."

              by edg on Mon Jun 16, 2014 at 03:37:47 PM PDT

              [ Parent ]

              •  I'd be curious (1+ / 0-)
                Recommended by:

                You can't tell from the post whether the average customer's total bill went up 8%, or if he chose to just raise the price of pizza-by-the-slice to recoup his expenses, leaving everything else the same.  It would depend on his product mix.  I know I spend about as much on beer as pizza when I go out, so if only the pizza went up and not the beer, it would work out to be pretty close to 4% on my tab.

            •  I wonder if the grocery stores used his logic a... (0+ / 0-)

              I wonder if the grocery stores used his logic and raised all the can goods, bread, meat and everything else in their stores by a few pennies each just because they had to now pay the baggers or cashiers a couple more dollars an hour. I hope not....because paying a quarter more for a slice of pizza isn't a big deal but pennies will add up to dollars at the supermarket and gas station and retail outlets etc.

              These big corporations or even the medium sized operations should just pay the extra few dollars and eat the profit margin. I mean it's nothing to them but families trying to get by on little to nothing as it is can barely afford to live now much less if everything they buy goes up by a quarter or so.

              •  I could be wrong (I often am), but... (0+ / 0-)

                It's my understanding that the corporations may have a legal obligation not to "eat the profit margin."
                Their charters, and/or case law, require that they generate as much possible (short term or long) in order to "enhance shareholder value."
                Of.course, when it comes to paying their executives, all thought of that does go out the window -- that works.

        •  Or maybe (2+ / 0-)
          Recommended by:
          thanatokephaloides, Jon Sitzman

          the amount he had to increase his income was similar to the amount he had to increase his labor costs and it was only the percentages that differed.

          Or perhaps his real target increase was an off number like .12 or .17.  or .20.  A restaurant like a pizza shop has a convenience component.  Much easier to deal with quarter increments - on both ends of the transaction.   he could have been a jerk and cut his staff by 4% -  'HEY1 not my fault you peons will jsut have to work harder!"

          "I'm not left wing because i'm ideological, or passionate, or angry. I'm left wing because I'm informed." - Mikesco

          by newfie on Mon Jun 16, 2014 at 11:24:50 AM PDT

          [ Parent ]

        •  Not really. (0+ / 0-)

          He only raised the price on pizza slices, not every item on his menu.

          Obi Ben Ghazi to House Republicans: "Use the Farce."

          by edg on Mon Jun 16, 2014 at 03:35:34 PM PDT

          [ Parent ]

        •  Why would productivity increase... (0+ / 0-)

          ...with moderately higher wages when everyone in the competing class of workers gets the same raise?

          The pizza place can't hire "better" workers now if they are still paying (the new) minimum wage as the pool of workers and their capabilities hasn't changed significantly.

          An individual business can, potentially, increase productivity by moving from paying minimum wage to, say, 20% above minimum wage because they can now attract better workers (and get rid of perhaps most of their current workers since they were not good enough to get more than minimum wage on the open market).

    •  Hard to compare given what we know. (2+ / 0-)

      On one hand you have labor per employee per hour.  On the other hand you have a single unit of product - with no other factor.  We don't know sales per hour etc.  But we do know that a slice of pizza is less than a third of the cost of labor per employee per hour.

      Hmm maybe simpler to point out that $9.75 is a bigger number than 3.  So 4% of 9.75 is 40 cents and 8% of $3 is 25 cents.  Still a poor comparison but suffice it to say the amount a business has to increase its labor cost and what they sell needs to be equal or near so and that does not mean that the percentages of change is the same.

      "I'm not left wing because i'm ideological, or passionate, or angry. I'm left wing because I'm informed." - Mikesco

      by newfie on Mon Jun 16, 2014 at 10:05:49 AM PDT

      [ Parent ]

    •  Chuck Hammers. *chuckle* *snort* (1+ / 0-)
      Recommended by:

      The sinners are much more fun...

      by TrueBlueDem on Mon Jun 16, 2014 at 10:16:59 AM PDT

      [ Parent ]

    •  hammers (0+ / 0-)
      Chuck Hammers may be missing the point. "To offset a 4% increase in costs, he raised the price of pizza slices by 8%".
      That must mean he's smart!

      As smart as a box of, well, you know, .......


      "It's high time (and then some) that we put an end to the exceptionalistic nonsense floating around in our culture and face the fact that either the economy works for all, or it doesn't work AT all." -- Sean McCullough (DailyKos user thanatokephaloides)

      by thanatokephaloides on Mon Jun 16, 2014 at 12:07:32 PM PDT

      [ Parent ]

    •  Those are two different things. (1+ / 0-)
      Recommended by:

      The 4% increase in costs was his increase in labor costs, which is wages plus taxes such as FICA. Per employee, the increase was 25%, from $8 to $10 per hour. But as employees are only a part of total expenses, that amounted to 4% overall increase in costs.

      Meanwhile, the 8% increase in a slice of pizza from $2.75 to $3 represents only a portion of total revenues. Since the price increase was only applied to pizza slices, soft drinks and other menu items stayed the same, so it is likely the 8% hit on pizza slices translates into a corresponding 4% increase in net profit.

      In other words, break-even.

      Obi Ben Ghazi to House Republicans: "Use the Farce."

      by edg on Mon Jun 16, 2014 at 03:32:56 PM PDT

      [ Parent ]

  •  It rarely seems to occur to "job creators" (9+ / 0-)

    You don't have to charge more. You just take a smaller bite. When business owners are compassionate rather than greedy, everyone wins.

    Granted, an added 25 cents per pizza isn't a big deal. But I realized how huge the mark-up is on a pie when the economy started to tank and Pizza Hut slashed its prices. Suddenly, a $15 pizza was $10 and you have to figure they're still making a profit at that.

    Now the prices are edging up again and I am saying 'hmmm' and not buying pizzas for the same reason I don't buy soda. I am not paying huge bucks for something that costs pennies to make. That's just stupid.

    THE ONLY WAY YOU CAN CONTROL PEOPLE IS TO LIE TO THEM. You can write that down in your book in great big letters. -- L. Ron Hubbard Technique 88

    by xenubarb on Mon Jun 16, 2014 at 10:53:19 AM PDT

    •  Hard to compare a (3+ / 0-)

      vast corporation like Yum! Inc to a small regional franchise outfit.  And there's more cost in that slice of pizza than merely the ingredients.  Quality of ingredients, cost of equipment, cost of utilities to run a restaurant, rent, cost of labor etc.  Certainly a huge corporation like Yum! Inc is making a good profit even at the lower cost you mention - the product isn't very good but that is a matter of taste.  

      I am sure that Mr Hammers is doing decently for himself.  I am sure by owning 5 restaurants he is able to get better prices on the ingredients he buys.  But should we denigrate him as a "job creator"?  This isn't who the GOP means as "job creators" - they really mean CEO's of large corporations who consistently fund them.  

      I don't mind that Mr Hammers raised his prices.  If his market will allow for a small increase - great.  I'd rather see this than for him to fire a dozen or so employees pretending that a 25 cent increase in prices is outrageous!  Seems to me he aimed to keep his margins what they were or similar.  Do we have to be against anyone who employs others?

      "I'm not left wing because i'm ideological, or passionate, or angry. I'm left wing because I'm informed." - Mikesco

      by newfie on Mon Jun 16, 2014 at 11:16:16 AM PDT

      [ Parent ]

      •  Did those other things go up? (0+ / 0-)

        Everyone knows this:

        And there's more cost in that slice of pizza than merely the ingredients
        But if the only thing that went up is salaries, then he indeed increased his profit margin by raising prices at a rate greater than his expenses went up.

        "I'm not a number" --84,414

        by BentLiberal on Mon Jun 16, 2014 at 01:10:03 PM PDT

        [ Parent ]

        •  You can't compare percentages (2+ / 0-)
          Recommended by:
          edg, BentLiberal

          you need to compare similar figures.  IF you compare the percentage change of a rate or dollars per hour to the percentage of change of a cost - not a rate - you have an uneven comparison.  In order to compare the 2 you'd either convert to a rate for pizza slices - by factoring the number of slices per hour and converting that number to a dollar amount or simply comparing a daily cost of labor versus a daily sales in terms of pizza slices.

          He may or may not be making more profit but you won't know given the information we have.  And it is way too simplistic to say if he increases his labor cost by 4% then he should only increase his cost of a single unit of product by 4%.  But you can say if he increased his labor cost by $5,000 he needs to increase his sales by $5,000 and that may translate to an 8% increase in the cost of a single slice of pizza.

          My guess is that 25 cents is a bit above his break even.  And I firmly believe that he would go with a quarter bump rather than an off number.  For all we know if he needed to inclrease prices by 5 cents a slice he may have eaten that. (no pun intended?)

          "I'm not left wing because i'm ideological, or passionate, or angry. I'm left wing because I'm informed." - Mikesco

          by newfie on Mon Jun 16, 2014 at 02:01:37 PM PDT

          [ Parent ]

          •  That makes much more sense (1+ / 0-)
            Recommended by:

            to me than the prior comment does. Thanks.

            "I'm not a number" --84,414

            by BentLiberal on Mon Jun 16, 2014 at 04:04:15 PM PDT

            [ Parent ]

            •  Yay! A record! (0+ / 0-)

              It usually takes 4 or 5 tries before I make sense.  Either that or you've been drinking - that usually helps to understand me.

              Bottom line is without the full info we really don't know.  But I suspect that Mr Hammers is fairly on the up and up.  He could make a wrong calculation but it seems as if he is merely trying to maintain the same level as he had previously.

              "I'm not left wing because i'm ideological, or passionate, or angry. I'm left wing because I'm informed." - Mikesco

              by newfie on Mon Jun 16, 2014 at 07:09:32 PM PDT

              [ Parent ]

          •  5 slices per hour per employee (0+ / 0-)

            Cost of labor went up $2.15 per hour per employee (that makes minimum wage, or was affected by raise to min). Cost of a slice of pizza went up $0.25.

            To make up his increased cost of labor, selling 5 slices of pizza per hour per employee that got a raise would get him an increase in profit.

            Not your $5000 labor, $5000 sales, but might help visualize.

            Guessing this owner is seeing an increase in profit and by a larger $ number than his employees. Especially if "sales are unaffected" really means # of slices sold didn't drop with his raise in pricing.

        •  But salaries went up 25%. n/t (0+ / 0-)

          Obi Ben Ghazi to House Republicans: "Use the Farce."

          by edg on Mon Jun 16, 2014 at 03:41:09 PM PDT

          [ Parent ]

        •  If he buys locally... (0+ / 0-)

          ...(i.e., from San Jose producers), his supply costs will go up slightly as well as his suppliers have to increase their workers' wages.

          However, since this increase was a San Jose ordinance, that probably is not a big factor as it's unlikely that he sources much stuff from San Jose manufacturers.

      •  he owns many more than 5 in the whole state. (0+ / 0-)

        The 5 are just the ones in San Jose.

        who owns five Pizza My Heart outlets in the city

        My Karma just ran over your Dogma

        by FoundingFatherDAR on Tue Jun 17, 2014 at 07:55:31 PM PDT

        [ Parent ]

    •  There's ALWAYS a huge markup on restaurant food (2+ / 0-)
      Recommended by:
      thanatokephaloides, RMForbes

      Easily 400-500% or more. Of course, it's paying for kitchen equipment, maintaining the building, the staff, ingredients, and everything else that goes into the business, so I'm fine with it.

      One of my strange hobbies is pricing the food that I eat at restaurants. Make of that what you will. :P

      "He who fights monsters should see to it that he himself does not become a monster. And if you gaze for long into an abyss, the abyss gazes also into you."

      by Hayate Yagami on Mon Jun 16, 2014 at 11:21:03 AM PDT

      [ Parent ]

    •  I'm skeptical that "prices are edging up again"... (0+ / 0-)

      Concerned lot of folks telling me they are going up.
      There was a kossack discussion couple of weeks ago.

      The Kossackonmics were saying the price spikes have to do with climate issues in america's bread basket aka California; current events ie crimea, fertile crescent; and speculators.

      Imo, 2014 and 2016 elections will be heavily decided by the price of gasoline and food.

  •  But min wage should have increased unemployment (3+ / 0-)
    Recommended by:
    thanatokephaloides, stagemom, NXNW

    if the right was correct

    "The poor can never be made to suffer enough." Jimmy Breslin

    by merrywidow on Mon Jun 16, 2014 at 11:07:07 AM PDT

  •  I bet there are good ones in San Jose (1+ / 0-)
    Recommended by:

    Lunch truck owners are going to pay their friends or relatives that work on the truck $10.15 an hour, right?

    "states like VT and ID are not 'real america'" -icemilkcoffee

    by Utahrd on Mon Jun 16, 2014 at 11:07:14 AM PDT

  •  And, In breaking news, (3+ / 0-)
    Recommended by:
    thanatokephaloides, NXNW, SGA

    the New Deal actually worked...

    "the northern lights have seen queer sights, but the queerest they ever did see. Was that night on the marge of Lake Lebarge, I cremated Sam McGee". - Robert Service, Bard of the Yukon

    by Joe Jackson on Mon Jun 16, 2014 at 12:06:21 PM PDT

  •  Eat out a little extra... (0+ / 0-)

    The industry most affected in the restaurant industry.  But, one impact is that restaurant workers make more money and might be able to eat out once or twice a year thus increasing sales.

  •  What does this sentence mean? (0+ / 0-)
    It directly and indirectly affected 70,000 of the city's 370,000 workers, Reich says.
    How many people actually had their wages change?
  •  So if your minimum wage earners have more money... (4+ / 0-)
    Recommended by:
    offgrid, CFAmick, smartalek, Matt Esler

    You have to build 20% more restaurants...  

    Oh, but that means you need 20% more minimum wage earners to work in them...

    Sounds like a never ending cycle to me...  I'm sure there is something in the Bible to tell us not to do this...  Right?

    Now when I worked in a restaurant for minimum wage, it was like $2.30 per hour.  Adjusted for inflation that comes out to $17 an hour in today's dollars.

    If I was a young man making $17 an hour, I think I would eat at restaurants quite frequently...  in fact, when I made $2.30 an hour I ate at restaurants 100% of my meals, and when I got a raise to $2.65 I purchased my first computer from Radio Shack.  I was always flush with money, and lived fairly well.  by the time I bought my first house, I was working in a grocery store making just a couple dollars over minimum wage, at the same time as I was paying for college.  Adjusted for inflation, that grocery store salary is 40% more than I am paid today as an engineer.

    So when we had a high minimum wage, people at the bottom of the economic ladder were able to buy houses and cars, and were fully contributing their disposable income to the economy.  While still at that grocery store job, with a wife also in a grocery store job (different store) we had two cars and a truck, I had tremendous spending on hobbies, and we started buying other real estate.

    Oh, and did I mention healthcare?  In my grocery store job, my healthcare plan was not insurance, it was a fully funded pool of cash that covered 100% of vision care, 90% of dental, and 80% of everything else.  Checkups were free, and included a full set of labs and x-rays, and anything else the doctor decided he needed.

    AND we had profit sharing in the company...  When I left my grocery store job, I had a large chunk of stock in the company accumulated as part of the profit sharing plan, that I cashed in and purchased land with...

    Today I have a college education and an engineering job, and my wife is a college educated accountant near the top of the pay-scale for accountants.  Between me and my wife's combined salaries, adjusted for inflation, we make less than half of what we were making while working in a grocery store in the early 1980's.

    I mean my 6 figure salary seems like a good salary, but looking back I was MUCH better off in the 1970's and 1980's when I was much closer to the bottom rung of the economic ladder.  Wow!  We have slipped quite a few rungs down that ladder in today's economy.  As far as I can tell, this is 100% Reaganomics in action.

    The minimum wage problem shows how much we have lost sight of what it takes to make the economy work.  Now low wage earners are packed 7 adults into a living space intended for two, large chunks of the economy are going stagnant, and the social chaos of people that are not feeling like they are part of the economy.

    •  I worked with someone (0+ / 0-)

      who graduated a 33k per year school and applied for a part time accounting job: 9.50 per hour.

      I'm living in America, and in America you're on your own. America's not a country. It's just a business.

      by CFAmick on Tue Jun 17, 2014 at 09:13:58 PM PDT

      [ Parent ]

  •  So how big were the raises? (2+ / 0-)
    Recommended by:
    Jon Says, Sparhawk

    It's easiest to raise the minimum raise in a place where the economy is getting better and unemployment is going down.  When things are good and there isn't a line waiting for every open job, wages go up regardless of the minimum wage.  Where I lived at the time the economy crashed, nobody made minimum wage because you couldn't hire people for that.  A few years later, it was hard to get a minimum wage job because they were being taken by people who'd made a decent living before.

    The real test of minimum wage increases, however, will not be restaurants. It's hard to off-shore a restaurant.  A help-desk? Not so much.

    LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

    by dinotrac on Tue Jun 17, 2014 at 07:36:01 PM PDT

  •  Ok... but talk me down (0+ / 0-)

    I run a daycare, over 40% of my clients are on state assistance.  The state pays a fixed rate per day for each child and requires the parent(s) to make a minor co-pay, usually ~$15 per month.  I doubt that the state will raise my payments if the min wage increases.  And I'm afraid that in the very short term many of our clients will receive raises, fail the income restrictions and be pushed off of assistance.  For most of these people, without assistance, daycare is almost as expensive as housing

    Most of my people make slightly more than minimum wage, but nowhere near the $15 Seattle is implementing.  I'm not sure I'm going to be saved because everyone else has to pay the same wages.  Most of the corporate daycares (KinderCare etc) limit their subsidized clients to 20% or less of capacity, so raising prices is more of an option.

    “that our civil rights have no dependence on our religious opinions, any more than our opinions in physics or geometry.” Thomas Jefferson

    by markdd on Tue Jun 17, 2014 at 08:03:01 PM PDT

    •  Think of it this way... (1+ / 0-)
      Recommended by:

      would you then argue that the minimum wage should be lower? That your clients should be making even less, so more of them would be on public assistance? If not, then why is "today's level" exactly the right number?

      It might seem like things are in perfect balance right now, but all those variables are always varying. Sure, you might lose a couple clients (who might need to find some alternative). You might gain a couple too - people who calculate that it's now worth it for them to work... and on and on...

      When things change, it's always scary - you can play endless "what if" scenarios that all spell doom. But, you have to constantly adapt to whatever is changing - in every business. Just remember that every challenge is also an opportunity.

      Freedom isn't free. That's why we pay taxes.

      by walk2live on Tue Jun 17, 2014 at 09:20:07 PM PDT

      [ Parent ]

  •  THANK you. I mean, we knew this, right? (1+ / 0-)
    Recommended by:

    We knew the scare stories were nonsense. Keep these stories coming, though! Thanks for posting this.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site