California Raises Minimum Wage to $15/Hr

[Real Men Wear Green]

It's pretty simple and straightforward. The increase in the buying power of the most numerous population (aka undercompensated poor) will increase the economy, jobs and business gains. Economy 101

I'm certainly not on the side of the guy you're arguing with but things don't work as straightforward as you're saying here. Poor people do spend more of what they earn but generally they're going to spend that money as frugally as they can. That means shopping at the big chains that sell things cheaply like Wal-Mart, Stop & Shop, etc., not the family-owned convenience store that will struggle to find their $15/hr.

[kNIOKAS]

$30/hour then. All hail the savior of our economy!

That would likely cause more disruption yet be equally effective in the long run. I don't think that's preferable.

I'm certainly not on the side of the guy you're arguing with but things don't work as straightforward as you're saying here. Poor people do spend more of what they earn but generally they're going to spend that money as frugally as they can. That means shopping at the big chains that sell things cheaply like Wal-Mart, Stop & Shop, etc., not the family-owned convenience store that will struggle to find their $15/hr.

Where are they spending their less-than-$15 now?? In family-owned convenience stores?

[Akrazotile]

It's pretty simple and straightforward. The increase in the buying power of the most numerous population (aka undercompensated poor) will increase the economy, jobs and business gains. Economy 101

[Im Still Ballin]

Somebody please tell me how much the average minimum wage worker makes on tips?

I always thought tipping was weird/stupid?

[falc39]

This raise is peanuts here in Silicon Valley. Wont do anything to help slow down the inevitable gentrification process. The problem with housing here is supply and the government regulations limiting that supply (especially in San Francisco).

[Real Men Wear Green]

Where are they spending their less-than-$15 now?? In family-owned convenience stores?

Of course they're still looking for bargains. But if you make the struggling convenience store owner pay more they have to raise their prices to make ends meet. Meanwhile the big corporations keep the same prices while having their big weekly sales on various items to make some prices even lower. Thus the small businesses will often end up selling even less product while having to pay employees more money. So then they have to figure out a way to balance the books. And how do they do that? Pretty much they have to find somewhere else to do business, let go of some of the employees they can't afford, go out of business entirely, or sell their business to someone that can afford to operate it, like the chains that can afford the raise in minimum wage.

We can't just throw random minimum wage numbers out there and shrug off the possible effects saying that the market will compensate. I mean, it will compensate but the form of that compensation isn't necessarily what you're expecting. If you're going to make provisions for the less fortunate the social safety net is the better route.

[Im Still Ballin]

Akrazotile and RMWG in the same thread

SHOWDOWN!

[Real Men Wear Green]

Somebody please tell me how much the average minimum wage worker makes on tips?

I always thought tipping was weird/stupid?

You don't really know anything about how this works. The guy stocking shelves in Target, whether he makes minimum wage or not (not sure), never gets tipped at all. The cup at the counter of the Dunkin Donuts might accumulate $20 in a day (total guess but it's not much) for everyone that worked the day or shift to share. The waitress that brings your dinner meanwhile gets solid tip money but by law often makes less than minimum wage but is highly unlikely to report her full cash tips on her taxes for anyone to know what she's getting. Movers, barbers, and others that get tipped, whether they make minimum wage or not, will often just stick cash in their pockets. You can go by the 15% to try and guess but that is only going to be a guess on what some of these people make.

[HitandRun Reggie]

The US left would probably love to see all small business wiped out and large corporations take over. They can roll with work and environmental regulations much easier than small business, and they wouldn't have to hear SB whine about the hardship these changes bring. Unlike large corporations, small business cannot operate on razor thin profit margins.

Small business is also not an easy target for unions, which is another reason Democrats want to see them go away. But a big minimum wage increase will increase union wages overall and bankrupt many small businesses, so it's a double win for unions, which not so coincidentally enough bought and paid for the politicians to push this law through.

[Im Still Ballin]

Ah I get it. So not all minimum wage jobs are the same. Those hooters waitresses are making bank.

[Akrazotile]

You don't really know anything about how this works. The guy stocking shelves in Target, whether he makes minimum wage or not (not sure), never gets tipped at all. The cup at the counter of the Dunkin Donuts might accumulate $20 in a day (total guess but it's not much) for everyone that worked the day or shift to share. The waitress that brings your dinner meanwhile gets solid tip money but by law often makes less than minimum wage but is highly unlikely to report her full cash tips on her taxes for anyone to know what she's getting. Movers, barbers, and others that get tipped, whether they make minimum wage or not, will often just stick cash in their pockets. You can go by the 15% to try and guess but that is only going to be a guess on what some of these people make.

The irony.


In California it's illegal for employers to count tips toward minimum wage. Employees in the state all make minimum wage, plus whatever tips they accumulate.

[Im Still Ballin]

What so the best minimum wage jobs are ones that are in direct contact with customers for potential tip bonus

[Im Still Ballin]

I never got the whole tip thing. What's the founding father constitutional philosophy on this?

[Real Men Wear Green]

The irony.


In California it's illegal for employers to count tips toward minimum wage. Employees in the state all make minimum wage, plus whatever tips they accumulate.

I am discussing the overall subject of minimum wage, not just California. The federal minimum wage for tipped employees is $2.13, well below the norm.

[Uncle Drew]

Congratulations on the pay raise