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polster2 March 14th, 2015 9:51pm

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?

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Maj Worth Economist
03/14/15 4:00 pm

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?

Maj Worth Economist
03/14/15 4:04 pm

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.

susanr Colorado
03/14/15 5:58 pm

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.

Mattwall1
03/15/15 10:45 am

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

Mattwall1
03/15/15 10:46 am

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)

Mattwall1
03/15/15 10:47 am

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)

TierasPet
03/14/15 3:14 pm

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.....

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TierasPet
03/14/15 3:15 pm

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.

smarttexan More Moderate Than U
03/14/15 3:05 pm

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.

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smarttexan More Moderate Than U
03/14/15 3:05 pm

Small businesses are going out of business where I live but we have an extremely minimum wage.

Dazey Beagles Rule
03/14/15 3:20 pm

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.

Rosebud Ohio
03/14/15 7:04 pm

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.