Had a fascinating reply on Facebook to the $15 min wage

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Business owners DO NOT create jobs!

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awesome

I don't get why employees that feel underpaid don't just start their own business.

When you say "run a business", you are referencing Fortune 500 companies. Not just any business.

The demand for top talent at CEO is much like the demand for top HC talent in the SEC. The top prospects are lured to their places of business with these incentive packages.

If you work for or own stock in that Fortune 500 company, I understand your disgust. But the hindsight question is always, "Who should they have hired and would that compensation package be much different?"

And that's where the silence begins.

If you don't work for those companies or don't own stock in them, just smile. When Tennessee screws the pooch with their coaching staff, it makes me smile.

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I don't get why employees that feel underpaid don't just start their own business.

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Exactly. If the owner contributes nothing, just DIY.

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Perhaps looking at countries like Switzerland and Germany...

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Tell that fricking dunce that NEITHER of those countries have min wage laws in effect.

I wonder where he was taught the "Ecom 101".

Germany and Switzerland don't even have minimum wages

My reply to him which I made before I started this thread...

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Econ 101, yes. Not Keynenisan Econ. We will look at a restaurant model since this is what the law in Sea-Tac directly impacts and as a Chef for over 23 years something I am well versed in. A restaurant has a fairly standard model for its pricing and costing. 30% Labor Cost; 30% Food Cost (fast food is 20-25); 20-25% for upkeep, utilities, rent, taxes outside of sales tax and if a franchise the franchise fee and any other bank notes; The rest is profit.

These wages are Colorado wages based off of Colorado Minimum Wage and non fast food:

Dishwashers (unskilled position) make minimum wage and get raises from there based on performance and longevity with the restaurant.

Prep Cooks get 8 to 9 (unskilled position) Experience dependent.

Line cooks start at $10 per hour but depending on the skill and experience of the cook can start as high as $12 per hour.

Hourly cooks CAP at $14 per hour. Once you hit the $14 to $16 area you are an hourly manager in the kitchen assisting the Chef and Sous Chef (salaried management).

If everyone is moved to $15 What do you think will happen to the labor cost? It goes up.

If labor costs goes up what do you think will happen to the menu pricing? It goes up.

This model is used on the corporate restaurant level and small business level. Expect to see your lobster dinner at red lobster to go up or your Chicken Alfredo at Olive Garden. If you think Raising the minimum wage will not do this you are a fool. If you think this will not shutter businesses and cause people to loose their jobs you are a fool. Our economy is exceptionally weak and one of the reasons it is weak is because many people cannot find full time jobs and are forced to take part time jobs and many of them are minimum wage jobs. The job participation levels are lower now than they were under Carter. Increasing costs for the employer will mean a cutting of jobs and increased prices. That is basic Supply and Demand Economics. Increasing wages will do nothing more than devalue the Dollar further, just look at countries like Italy that did this sort of foolishness and look at the "value" of the Lira (a coke cost 50K Lira in 1991 when I was there) before they joined the EU and a fat lot of good that did them, they are continuing to go bankrupt.

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There's also a misconception that labor is somehow responsible for the success of the business and owners/managers are just the evil recipients of their rewards. My business is only successful because of me. You can remove any employee I have and shite don't change. You remove me, and it closes. Same with my wife's business. Now if we happen to make more money, and it requires no further work by our employees, why are they entitled to money I earned and they did not? If they feel they are justly compensated, why should a third party tell me what to pay them? The can haul arse anytime they please. And am I not supposed to profit from my risks, ideas, and investment? This people had zero risk, zero input on starting the businesses, and zero investment. That's like someone having to pay me part of the interest they make on investments just because I want some. Maybe we have the money because we're smarted and understand this. And because we go get it and make shite happen instead of waiting around with our hand out waiting for the money fairy to drop her load in it. F#$king dumbasses.

How bout increased minimum wage for people that have been employed at the same place for a minimum of say 5yrs? Would reward those employees and wouldn't created a barrier to entry level positions. They are some people whose top end achievement is a minimum wage job. Yes, it would be nice for these to get a "living wage", but is that not what welfare, food stamps, and subsidized housing is for? I'm all for a $15 minimum wage if I can get a 10% decrease in income tax and massive cuts to entitlements.