In response to an increase in the minimum wage to $15/hour in the city of Seattle, many firms are cutting hours or, even worse, closing up shop. Do the increased wages for workers in larger companies outweigh the costs for small businesses?
I'm on my iPod, so I see there's a link. But I can't get it to load on SoH or by pushing the open in safari button. Can you/someone please repost?
I don't know what the article says, but I hopped on Google and did some searching. The $15 wage hasn't kicked in yet. So any businesses closing are doing so preemptively. I'm not making any calls based on that. That's ridiculous.
Not working for me either, but I think this is it: washingtonpolicy.org/blog/post/seattles-15-wage-law-factor-restaurant-closings
I don't understand why they don't at least *try* upping prices 20% and telling customers not to tip, instead. And if that doesn't work, then they really don't have a very viable business model anyway, & they're getting along on the backs of workers.
Susan, if you're a business owner that doesn't want a higher minimum wage, which works better from their view, raising prices in the manner you mentioned, or threatening to close up shop even if you might not need to (that's not to say any business
That closes is doing so evict, many close-especially restaurants. Immediately tying it to the minimum wage, whether or not that's the case, is a brilliant PR move on the part of businesses)
That all being said I still don't think going to $15 an hour was the right move, not from where it was (and yes, I understand it's incremental, but still)
Small business makes up over 60% of all business in this country. I think the hit is bigger to them than it is to large firms. However, large firms employ more people under one umbrella so maybe it is harder on them.....
It is McDonald's that sued over the minimum wage raise. That tells me it must be affecting their bottom line tremendously or they are trying to stem off other cities raising the minimum wage to $15 an hour.
I don't think it's a problem for small businesses. Small businesses are riskier. We don't know the reason for them going out of business or cutting hours is really the minimum wage. It is more likely a bad business model or bad leader.
Small businesses are going out of business where I live but we have an extremely minimum wage.
That's a really key point. Correlation and causation. Small businesses are shutting down in cities with the fed min wage. They will be shutting down when the min wage increases. And...they'll be opening up during all of this too.
Same here. Businesses are opening and closing constantly. A smoothie shop is opening near where I work, but a family owned bike shop just closed. It will always happen, regardless of the minimum wage.