Arizona Minimum Wage hike

[StormRichards]

Just saw a news story about companies being forced to lay off employees or even close their doors to the new minimum wage law in the state.

Who didn't see this coming?

[snafu]

I presume restaurants and retailers will raise prices to benefit their bottom line.
Is it possible that a higher number of people will benefit from the wage hike than the number of job losses? Will it affect the undocumented worker, cash under-the-table, hourly group? Will non green card workers get any benefit of the new rate? Do teen workers benefit or are they exempt?

[LivingAlmostLarge]

WA and CA is booming. They are the $15 minimum wage and are leading in jobs and hiring. So I'm assuming that because Arizona didn't work out so far that is the answer? I'm not sure which is better but it doesn't seem fair to cherry pick one state versus another. I think there are a few other states that seem to be raising the minimum wage. we'll have to see what happens.

[feh]

WA and CA is booming. They are the $15 minimum wage and are leading in jobs and hiring. So I'm assuming that because Arizona didn't work out so far that is the answer? I'm not sure which is better but it doesn't seem fair to cherry pick one state versus another. I think there are a few other states that seem to be raising the minimum wage. we'll have to see what happens.

+1

This issue has been studied and will continue to be studied. To draw conclusions from one headline/article is ridiculous, unless the goal is just to repeat a narrative.

[disneysteve]

I presume restaurants and retailers will raise prices to benefit their bottom line.

That's not so easy.
Raise restaurant prices and people will eat out less.
Raise store prices and people will shop online more.

Just because you raise the wages of minimum wage workers doesn't mean everyone else gets a raise. In fact, just the opposite might be true. So people become more price sensitive when shopping and dining. Higher prices don't necessarily equate to higher revenue if sales drop off as a result.

[StormRichards]

+1

This issue has been studied and will continue to be studied. To draw conclusions from one headline/article is ridiculous, unless the goal is just to repeat a narrative.

And what is the narrative you are assuming I am trying to repeat?

[disneysteve]

Folks, just a reminder to keep the conversation on the financial aspects and impact of the minimum wage and not wander off into political topics.

[bjl584]

This issue is much more complicated than simple black or white. There are tons of factors and moving parts to consider.

Simply raising wages won't cause companies to lay off workers. At least not in a broader sense. Tons of factors can lead to lay offs and/or hiring.

I don't own a business, but I do know that there are tons of factors to consider besides labor costs.

[disneysteve]

This issue is much more complicated than simple black or white. There are tons of factors and moving parts to consider.

Simply raising wages won't cause companies to lay off workers.

Definitely. It's just one of many factors. If labor costs go up, though, the money for that has to come from somewhere. It could be higher prices. It could be smaller bonuses or scaling back the annual holiday party. It could be a less generous 401k match. It could be not replacing some employees who retired. It could be some combination of all of those things and more. And in some cases, it could mean cutting some jobs to afford the higher wages.

[Singuy]

Only 1.1% of hourly workers make the federal min wage. (870k out of 78.2 million in 2015). 78.2 million also only accounts for 58.5% of all paid employees(the rest I assume are commission based or salary). So about 0.5% of all American workers make the min wage. Another 1.7 million hourly workers make below the min wage, but I feel any increase in the min wage doesn't affect these individuals anyway(perhaps these are tip earners).

Raising the min wage is more politics than anything. The idea that there will be "massive layoffs" due to a min wage hike is also a hilarious proposition since more than 98% of Americans worker already earns more than the min wage.

Don't let one headline determine your entire outlook. Math and hard data speaks more than anything.

https://www.bls.gov/opub/reports/minimum-wage/2015/home.htm

[MooseBucks]

Only 1.1% of hourly workers make the federal min wage. (870k out of 78.2 million in 2015). 78.2 million also only accounts for 58.5% of all paid employees(the rest I assume are commission based or salary). So about 0.5% of all American workers make the min wage. Another 1.7 million hourly workers make below the min wage, but I feel any increase in the min wage doesn't affect these individuals anyway(perhaps these are tip earners).

Raising the min wage is more politics than anything. The notion that there will be "massive layoffs" due to a min wage hike is also a hilarious proposition since more than 98% of Americans worker already earns more than the min wage.

Don't let one headline determine your entire outlook. Math and hard data speaks more than anything.

https://www.bls.gov/opub/reports/min.../2015/home.htm

I agree - but the numbers will be higher as AZ was already above Fed Min Wage and went up another 25%.

[disneysteve]

Only 1.1% of hourly workers make the federal min wage.

This thread isn't about the federal minimum wage. It's about the state minimum wage in Arizona.

A lot of states have set the minimum higher than the federal level so the % of workers earning minimum wage is likely higher depending on where you look.

[StormRichards]

I have yet to find the story that I saw on the news, but this is a similar one.

http://www.kyma.com/news/yuma-businesses-making-cuts-due-to-wage-increase/323518152

[LivingAlmostLarge]

Antedotally, I've walked into fast food and seen many workers not teenagers. I might guess many are working a second job or parent working split shift to support their family and their income is helping reach the median $50k.

If I had to guess i would say that people who always say minimum wage is just for entry level teenagers hasn't looked at the people working the cashiers are walmart, target, or even starbucks. I see so many doing food service and that's their job. NOT teenagers by a long shot. I also see a lot of seniors now, which makes me wonder if they are working out of necessity to make ends meet?

I don't think the minimum wage is for entry level teens as is always trumpted. But I could be wrong.

And there is more to it than just saying rising wages = unemployment. There is the benefit of paying more to workers but then just cutting hours and then no benefits. So it's not black and white or a direct correlation.

[greenskeeper]

Folks, just a reminder to keep the conversation on the financial aspects and impact of the minimum wage and not wander off into political topics.

it's a political topic