New York City businesses struggle after minimum wage increase

[techbeck]

More than six months after the $15 minimum wage went into effect in New York City, business leaders and owners say the increased labor costs have forced them to cut staff, eliminate work shifts and raise prices.

 

Many business owners said these changes were unintended consequences of the new minimum wage, which took effect at the beginning of the year.

 

Susannah Koteen, owner of Lido Restaurant in Harlem, said she worries about the impact raising wages could have on her restaurant, where she employs nearly 40 people. She hasn’t had to lay off anyone, but the increase has forced her to cut back on shifts and be more stringent about overtime. She said she changes her menu offerings seasonally and raises prices more often since the wage boost.

 

“What it really forces you to do is make sure that nobody works more than 40 hours,” Ms. Koteen said. “You can only cut back so many people before the service starts to suffer.”

 

Ms. Koteen said she shelved plans to move her restaurant to a larger location. That would require her to hire more staff, and she isn’t willing to take the risk with the unpredictability of her business. “You would just have no choice but to cut people at the bottom,” she said.

 

More....

https://www.foxnews.com/us/new-york-city-businesses-struggle-to-keep-up-after-minimum-wage-increase

[DocM]

It's not like the city father's weren't warned, but nooo....

 

Meanwhile, the flood of small business owners & others out of NYC to lower tax states continues.  Even AOC's mother hit the road, 😂

 

https://thehill.com/opinion/finance/433485-sky-high-taxes-have-many-critics-including-aocs-mother

Quote

 

>

BOC bailed on the state recently, explaining, “I was paying $10,000 a year in real estate taxes up north. I’m paying $600 a year in Florida. It’s stress-free down here.” That commonsense message may not yet have percolated through to AOC, who may wonder why her mom's phone number now has a Florida area code.

>

 

[xrobwx71]

23 hours ago, techbeck said:

More than six months after the $15 minimum wage went into effect in New York City, business leaders and owners say the increased labor costs have forced them to cut staff, eliminate work shifts and raise prices.

 

Many business owners said these changes were unintended consequences of the new minimum wage, which took effect at the beginning of the year.

 

Susannah Koteen, owner of Lido Restaurant in Harlem, said she worries about the impact raising wages could have on her restaurant, where she employs nearly 40 people. She hasn’t had to lay off anyone, but the increase has forced her to cut back on shifts and be more stringent about overtime. She said she changes her menu offerings seasonally and raises prices more often since the wage boost.

 

“What it really forces you to do is make sure that nobody works more than 40 hours,” Ms. Koteen said. “You can only cut back so many people before the service starts to suffer.”

 

Ms. Koteen said she shelved plans to move her restaurant to a larger location. That would require her to hire more staff, and she isn’t willing to take the risk with the unpredictability of her business. “You would just have no choice but to cut people at the bottom,” she said.

 

More....

https://www.foxnews.com/us/new-york-city-businesses-struggle-to-keep-up-after-minimum-wage-increase

Meanwhile, back at the ranch, Math sits confidently in its hottub, basking in it's own reality.

[Jason S. Global Moderator]

this is already happening in California, too. it's basic economics. Businesses simply dont make enough profit to cover the rise in wages. If people want $15/hr then something else has to go - worse or no health care, less paid time off, fewer hours, fewer employees.

[xrobwx71]

2 hours ago, Jason S. said:

this is already happening in California, too. it's basic economics. Businesses simply dont make enough profit to cover the rise in wages. If people want $15/hr then something else has to go - worse or no health care, less paid time off, fewer hours, fewer employees.

Cut out the politics completely, apply math. I am not against it, I'd love for everyone to make a decent wage. 

[Jason S. Global Moderator]

10 minutes ago, xrobwx said:

Cut out the politics completely, apply math. I am not against it, I'd love for everyone to make a decent wage. 

i'm not sure if you were agreeing with my post or not.... either way, the market/economy is already priced for the lowest earning consumers. For example, basic food or clothing. If wages go up across the board then prices for basic needs will also go up. That negates any increase in wages.

 

If walmart needs to pay everyone $15/hr across the country, and they dont compensate in any fashion, then their only recourse is to raise prices for their goods. If manufacturers need to pay employees $15/hr, then it'll be more expensive to produce their products. Of course, that doesnt happen in the real world. Manufacturers would simply cut corners elsewhere, as i already mentioned, by eliminating perks, profit sharing, vacation, medical, paid leave, or just cutting employees.

[xrobwx71]

28 minutes ago, Jason S. said:

i'm not sure if you were agreeing with my post or not.... either way, the market/economy is already priced for the lowest earning consumers. For example, basic food or clothing. If wages go up across the board then prices for basic needs will also go up. That negates any increase in wages.

 

If walmart needs to pay everyone $15/hr across the country, and they dont compensate in any fashion, then their only recourse is to raise prices for their goods. If manufacturers need to pay employees $15/hr, then it'll be more expensive to produce their products. Of course, that doesnt happen in the real world. Manufacturers would simply cut corners elsewhere, as i already mentioned, by eliminating perks, profit sharing, vacation, medical, paid leave, or just cutting employees.

I am agreeing with you. It's math.... There is only one way to do math. 

[trag3dy]

Absolutely shocking and no one could have predicted such a thing would happen at all. Ever.

 

The sad part is we have people wanting a federal mandated $15 an hour min/wage and while that is a noble goal it's not one that can realistically be achieved unless a lot changes.

[wakjak]

I'm sure the same things were said before whatever the previous minimum wages were as well, they'll adapt and figure it out in the long run.

[+Raze Subscriber²]

Eventually, given time, it will become a part of the economy.  Companies make the adjustments they need and citizens will too.  Capitalism can adapt to such changes, it has for many decades.

[techbeck]

8 hours ago, trag3dy said:

Absolutely shocking and no one could have predicted such a thing would happen at all. Ever.

 

The sad part is we have people wanting a federal mandated $15 an hour min/wage and while that is a noble goal it's not one that can realistically be achieved unless a lot changes.

Part of the problem is the amount of min wage increase in just a few years.  Past history, the increase was not so drastic in such a short period of time.  No time to adjust.   Min wage in doubling in some areas or going up 3-4 an hour in just a couple of years.  And in areas where it is going up slowly, it will not make much a diff for those for years until it reaches that point.  By then, people will want more.  There is also talk bout making it $20 an hour.

 

People also need to take accountability for their own actions and learn to not spend more than they make and not live beyond their means.  Was a time I was making 12 an hour for a few years, paying rent, my utilities, 2 car payments, insurance payments....and I was just fine . But I made adjustments in my life.  I did not go out all the time, cooked at home, cut cable TV, and watched my spending.  Never once was I late on a payment.  Lots of people are not as disciplined these days.  Also, if you cannot afford to take care of yourself, people should not be having kids.  Cannot afford the latest and greatest iPhone/gadget, do not get it. 

 

Unless you also make adjustments in your own life, this will not fix things for many people.

Edited August 8, 2019 by techbeck

[+Raze Subscriber²]

Additional information regarding restaurants in NYC.

 

NYC restaurants are 'flourishing' despite minimum wage hikes, study says

 

https://www.amny.com/eat-and-drink/nyc-restaurant-minimum-wage-1.34757466

[Astra.Xtreme]

23 minutes ago, wakjak said:

I'm sure the same things were said before whatever the previous minimum wages were as well, they'll adapt and figure it out in the long run.

Yeah, they'll adapt by raising prices and cutting hours and jobs....  In the end, everybody loses. You know, like exactly what the article mentions and exactly what happened in Seattle.

Once again, the "brilliant" theory did nothing to help the people it was supposedly going to help...

[techbeck]

6 minutes ago, Raze said:

Additional information regarding restaurants in NYC.

 

NYC restaurants are 'flourishing' despite minimum wage hikes, study says

 

https://www.amny.com/eat-and-drink/nyc-restaurant-minimum-wage-1.34757466

People making more money, people eating out more.   I am betting it will not last to long before people are back to where they were.  I could be wrong . People making more money and going back to the same habits that put them in the situation to begin with.  It is not hard to cook a good meal and for what you pay going out one night, you can make meals for the whole week.

[+Raze Subscriber²]

2 minutes ago, techbeck said:

People making more money, people eating out more.   I am betting it will not last to long before people are back to where they were.  I could be wrong . People making more money and going back to the same habits that put them in the situation to begin with.  It is not hard to cook a good meal and for what you pay going out one night, you can make meals for the whole week.

Um people going out to eat does not necessarily mean they make minimum wage.  The article was referring to the fact that in spite of the minimum wages increases and the resulting price increases people still went out to eat and, in fact, the trend has grown.  It wasn't about people spending beyond their means or minimum wage earners.

[adrynalyne]

1 hour ago, wakjak said:

I'm sure the same things were said before whatever the previous minimum wages were as well, they'll adapt and figure it out in the long run.

And be back at square one once everything adjusts to the higher minimum wage. Same as last time. 

[seta-san]

9 hours ago, xrobwx said:

I am agreeing with you. It's math.... There is only one way to do math. 

facebook can't seem to agree on this one.

4 ÷ 2 (2+2) = 

[The Rev]

Ya know, the problem is that capitalism is too out of control now.  Minimum wage increases would WORK if businesses weren't free to jack up prices at will, and suffered economic consequences for outsourcing and layoffs...  Honestly, I get the perspective from the top, to a degree, but the problem is, you can only jack up prices and eliminate jobs so much before you bankrupt your market population.  That's pretty much where we're headed, which is why a certain degree of socialist policies need to be implemented beyond where we are today.  Otherwise what little money the 99% has now will be gone and at some point even the rich will start crumbling.  Our current capitalist trajectory is simply unsustainable.  

[DocM]

On 8/14/2019 at 10:19 AM, The Rev said:

Ya know, the problem is that capitalism is too out of control now.  Minimum wage increases would WORK if businesses weren't free to jack up prices at will,

>

 

A 90 daywage & price control was  tried in the 1970's by Nixon to fight a 5.84% inflation. A political success, but the economy went back to float mode soon after the G10. 

 

Executive Order 11615 (pursuant to the Economic Stabilization Act of 1970)

Edited August 26, 2019 by DocM

[Director Fury]

$15/hr is too much, however the current minimum isn't enough either, $7.25/hr? Gimme a break, try at least $10/hr. That, sounds like a step in the right direction, even as much as $12/hr, but I think that would be the max without breaking the businesses' backs. Or the employees.

[Mockingbird]

On August 25, 2019 at 11:50 PM, Director Fury said:

$15/hr is too much, however the current minimum isn't enough either, $7.25/hr? Gimme a break, try at least $10/hr. That, sounds like a step in the right direction, even as much as $12/hr, but I think that would be the max without breaking the businesses' backs. Or the employees.

[+Warwagon MVC]

😐 <---- This is my shocked face.

[Closed account]

Anecdotes aren't data. Lots of opinining here with about something  without evidence. 

DUNNING KRUGAR IN ACTION.