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| Economy |
| $15 Minimum Wage Would ‘Spell a Death Knell for Many Small Restaurants,' Expert Warns |
| 2021-01-29 |
| [Foundation for Economic Education] President Joe Biden is pushing for inclusion of a $15 federal minimum wage in the next COVID-19 spending package, hoping it would stimulate the economy. But a top financial expert just warned it would do the opposite—and spell doom for restaurants and small businesses. A higher minimum wage "reduces firm’s incentives to hire more minimum wage workers," Olin Business School finance professor Radhakrishnan Gopalan said. "This effect would be all the more enhanced when firms are hurting from the pandemic." "The restaurant sector, which employs a significant number of minimum wage workers, and the retail sector are struggling," Gopalan continued. "Raising the minimum wage now would spell a death knell for many small restaurants." The professor isn’t speculating. His research has shown that businesses respond to minimum wage increases by reducing future hiring, leading to an overall decline in employment among minimum wage workers. And this is part of a broader empirical data set confirming what economic theory demonstrates: that minimum wage hikes eliminate jobs. As for the $15 minimum wage proposal, the nonpartisan Congressional Budget Office estimated that it would eliminate 1.3 to 3.7 million jobs nationwide. That estimate is using a pre-pandemic scenario—there’s plenty of reason to think the impact would be even worse now. |
| Posted by:Besoeker |
| #8 FOR SALE I am selling my white privilege card. It is over 70 years old but is in mint condition. It has never been used. Reason for selling is that it hasn't done a damn thing for me! No free college, no free food, no free housing etc. Prefer cash, but would be willing to do an even trade for a race card which seems to be more widely accepted. Interested? Contact me on my non-Obama cell phone that I pay for every month.... Serious buyers only ! |
| Posted by: Besoeker 2021-01-29 16:14 |
| #7 Needs Based is coming. Though first they’ll significantly raise the contribution taken from the paychecks of our children and grandchildren, and increase eligibility ages and out of pocket copayments in a vain attempt to balance the books a little longer. But I’ve long assumed there would be nothing for me when I got there, and planned accordingly. How to plan for a smaller Social Security check [USAtoday] Absent any changes, Social Security will be able to pay scheduled retirement and survivors benefits on a timely basis until 2034. And then, its reserves will become depleted and continuing tax income will be sufficient to pay only 76% of scheduled benefits. Indeed, in 2014 for instance, Social Security benefits accounted for between 54% and 72% of family income in the three lowest income quintiles, compared with 18% to 34% of family income in the two highest quintiles. |
| Posted by: trailing wife 2021-01-29 16:03 |
| #6 Only the ones insisting on employing only "documented Americans". |
| Posted by: g(r)omgoru PB 2021-01-29 15:15 |
| #5 Lot's more businesses (small and large) than just restaurants will be hurting, I'm afraid. |
| Posted by: Mullah Richard 2021-01-29 13:29 |
| #4 Could solve those problems with price fixing and employment freezes. Well, employment freezes based on social justice points. |
| Posted by: swksvolFF 2021-01-29 11:06 |
| #3 /\ That will not happen until "Needs Based" Social Security is approved. It's an equity thing, you wouldn't understand. |
| Posted by: Besoeker 2021-01-29 10:55 |
| #2 Wasn't kidding about the $20 bill becoming the new $1 bill. Know what doesn't change? Tax brackets. |
| Posted by: swksvolFF 2021-01-29 10:52 |
| #1 It is Economically Suicide to DOUBLE minimum wage in one big increase. IF even done, it should be something done over several good economic years. Besides have they looked at how this will play out??? 1. Increase M/W to $15 p/hr. 2. Promise to increase taxes for fuels, incomes and their Green Tax. 3. Nationwide Costs increase. 4. Big purchase items (Union made) cost increases and retail prices also. So less is sold. Business sales drop and the UNION and worker sector Layoffs, bankruptcies and homeless #'s increase. 5. Food, Gas, Utility prices increase and all Medical related item prices jump. 6. President Carter Admin era Inflation rates, with 21% car and home loan interest rates appear. Those markets collapse. Then The Next Great Correction / BAILOUT Congress must increase Social Security benefits with a COLA, WIC, SNAP and etc... We add between 7 and 9 Trillion to the national debt. OR we trade off or "allow" US holding to go their own way (PR, Pacific holdings and etc)... As we pull back on the world front, CHINA still temporarily on more stable financial footing expands. Before Lack of US and world sales hits its own budget in about 6 to 9 months. |
| Posted by: NN2N1 2021-01-29 06:37 |