City of Seattle to raise minimum wage to $15/hr

[The Berean]

This should be interesting.

The measure, which would take effect on April 1, 2015, includes a phase-in of the wage increase over several years, with a slower process for small businesses. The plan gives businesses with more than 500 employees nationally at least three years to phase in the increase. Those providing health insurance will have four years to complete the move. Smaller organizations will be given seven years.

SOURCE

 

[Nick M]

That just gives them 3 years to relocate.

 

[GuySmiley]

This will be interesting to watch. Does the $15/hr go up with inflation every year? $15/hr today isn't $15/hr in 7 years.

 

[rocketman]

There is a mass exodus of business here in California due to over-taxation & over-regulation, California is losing businesses at a 3:1 ratio and has lost 158 businesses just this year, I would expect to see the next exodus coming from the northwest being they intend to make doing business especially small business impossible with a 15/hr minimum wage. This will be a watch, wait, and see for sure.

 

[rocketman]

This will be interesting to watch. Does the $15/hr go up with inflation every year? $15/hr today isn't $15/hr in 7 years.

All things being relative, the cost of living in the Seattle/Tacoma area will rise with it.

 

[resurrected]

if i'm a small business owner forced to pay untrained workers $15/hr, i'm going to work them like dogs

 

[One Eyed Jack]

Maybe some of these businesses will move to North Carolina. It doesn't cost so much to do business down here.

 

[rexlunae]

This should be interesting.

It really should. There's little evidence that higher minimum wages result in unemployment, but I don't think any place has raised wages this much either.

One thing is for sure. If higher unemployment figures don't result, it will comprehensively debunk the notion that anything like that happens.

 

[rexlunae]

Maybe some of these businesses will move to North Carolina. It doesn't cost so much to do business down here.

The problem with that theory is that businesses that pay minimum wage tend to be the kind of businesses that you can't just relocate. Places like fast food, and retail, where the location makes a big difference in sales, and you ideally want to be within a few miles of every potential customer.

 

[One Eyed Jack]

The problem with that theory is that businesses that pay minimum wage tend to be the kind of businesses that you can't just relocate. Places like fast food, and retail, where the location makes a big difference in sales, and you ideally want to be within a few miles of every potential customer.

We're not the Outback, but upon further reflection, most of the businesses that relocate will probably just move outside of the Seattle city limits.

 

[rexlunae]

We're not the Outback, but upon further reflection, most of the businesses that relocate will probably just move outside of the Seattle city limits.

That may work for some, although many low-wage businesses aren't very welcome in Seattle in the first place. Have you ever tried to find a Walmart there, for instance?

 

[Lon]

All things being relative, the cost of living in the Seattle/Tacoma area will rise with it.

The cost of living in Seattle is already very high. That's why it is for the city, specifically. Can they afford it? Yes, for the most part. I doubt many businesses would leave that lucrative area where there is plenty of competition for building space. Not New York or Chicago, certainly...

 

[One Eyed Jack]

That may work for some, although many low-wage businesses aren't very welcome in Seattle in the first place. Have you ever tried to find a Walmart there, for instance?

I live in North Carolina, dude. Seattle is almost 3,000 miles away.

 

[rexlunae]

I live in North Carolina, dude. Seattle is almost 3,000 miles away.

I understand, but I assume that you might have traveled. I have lived in Seattle for short periods, and I have family and friends there.

 

[One Eyed Jack]

I understand, but I assume that you might have traveled. I have lived in Seattle for short periods, and I have family and friends there.

I've long wanted to visit Washington, but Michigan or Indiana is about as far west as I've ever been. As for Walmarts, they're pretty much ubiquitous around here.

 

[rexlunae]

I've long wanted to visit Washington, but Michigan or Indiana is about as far west as I've ever been. As for Walmarts, they're pretty much ubiquitous around here.

Well, then, I'll tell you, you can take my word for it, or you can check it out on Google Maps or similar, but there are no Walmarts in--, or particularly near--, Seattle. It's actually rather remarkable.

 

[One Eyed Jack]

Well, then, I'll tell you, you can take my word for it, or you can check it out on Google Maps or similar, but there are no Walmarts in--, or particularly near--, Seattle. It's actually rather remarkable.

Where does everybody shop? The Walmarts here are always packed -- I usually check out in the garden or electronics sections to avoid the long lines at the main registers.

 

[99lamb]

the minimum wage goes to $15.00 an hour.
does everything else stay the same? does the cost of rent, stay the same? groceries? gas? utilities?
What about the benefits a company offers, do they keep them for the $15.00 an hour worker, or drop benefits? or increase the cost of certain benefits like insurance to off set the cost of paying the increase in wages, and what about the product they produce, whether it is a burger or some other widget, do you think the company will eat the cost or pass it on to the consumer? And lastly do you think the company will cut payroll, decrease hours, overtime and now increase the qualifications for an entry level position paying $15.00?

 

[rexlunae]

Where does everybody shop?

Target. Actual grocery stores. Malls, restaurants, other smaller stores. There are options.

The Walmarts here are always packed -- I usually check out in the garden or electronics sections to avoid the long lines at the main registers.

I use the tire section, if it's open. No one goes there to pay for stuff.

 

[The Berean]

It really should. There's little evidence that higher minimum wages result in unemployment, but I don't think any place has raised wages this much either.

One thing is for sure. If higher unemployment figures don't result, it will comprehensively debunk the notion that anything like that happens.

Economics has become one of my favorite interests recently. Does mimimum wage increase unemployment? It's a difficult question to answer.

http://www.washingtonpost.com/blogs...conomists-are-so-puzzled-by-the-minimum-wage/