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Daycare Center and Family Home Forum>Minimum Wage Increase
Unregistered 02:34 PM 01-26-2021
Just heard on the news that President biden is planning to increase the minimum wage to $15 an hour. What's your opinion on it? How are people supposed to afford anything such as groceries????
Michael 03:59 PM 01-26-2021
I think that should be a state by state decision. After all, $15 in West Virginia is a lot different than $15 in California. Median income for a household in CA is 75,235 USD while in WV it is 46,711 USD.
Cost of living
L.A. House - $816,438 Rent - $2,800
West Virginia House - $96,400
Obviously, if you are running a small business, paying more may result in hiring less. In California we have a large influx of immigrants both legal and illegal. Many small businesses and farms can not pay the $15 an hour for immigrant labor. Expect prices and inflation to rise on consumer goods.
Cost of living
L.A. House - $816,438 Rent - $2,800
West Virginia House - $96,400
Obviously, if you are running a small business, paying more may result in hiring less. In California we have a large influx of immigrants both legal and illegal. Many small businesses and farms can not pay the $15 an hour for immigrant labor. Expect prices and inflation to rise on consumer goods.
Former Teacher 06:05 PM 01-26-2021
Originally Posted by Michael:
Expect prices and inflation to rise on consumer goods.
This is EXACTLY what my husband said!Expect prices and inflation to rise on consumer goods.
Sunshine69 06:27 PM 01-26-2021
It’s not as simple as it sounds.
IMHO, it will cause more harm than good.
In my state, minimum wage just increased to a little over $12/hr. A $3/hr. raise is a lot for an employer to cover. Not to mention, the folks that are already making that much and have significant time and responsibilities with an employer are going to have to get a raise commensurate to the entry-level employees, otherwise there’s no reason for them to stay on and carry the extra responsibilities. It can be too much for an employer to cover and will result in layoffs and job cuts. It’s less costly to hire part-time employees that don’t get benefits or overtime pay.
The cost of everything else will increase as employers will need to charge more for their products and services to cover their increase in expenses.
Some self-employed, small business owners don’t even make minimum wage themselves, especially when the hours they dedicate to their business is considered. I certainly won’t be paying an employee 3x what I make when they don’t carry anywhere near the risk and responsibility I do.
I can already feel my blood boiling when my clients, that get a raise because of the minimum wage increase, start complaining about my rate increases to cover the increase in my expenses, while I continue to make a four figure profit.
The politicians that vote for this increase should be giving up a percentage of their six figure salaries to go to the employers that can’t afford it.
Haven’t we seen enough small businesses close this past year?
IMHO, it will cause more harm than good.
In my state, minimum wage just increased to a little over $12/hr. A $3/hr. raise is a lot for an employer to cover. Not to mention, the folks that are already making that much and have significant time and responsibilities with an employer are going to have to get a raise commensurate to the entry-level employees, otherwise there’s no reason for them to stay on and carry the extra responsibilities. It can be too much for an employer to cover and will result in layoffs and job cuts. It’s less costly to hire part-time employees that don’t get benefits or overtime pay.
The cost of everything else will increase as employers will need to charge more for their products and services to cover their increase in expenses.
Some self-employed, small business owners don’t even make minimum wage themselves, especially when the hours they dedicate to their business is considered. I certainly won’t be paying an employee 3x what I make when they don’t carry anywhere near the risk and responsibility I do.
I can already feel my blood boiling when my clients, that get a raise because of the minimum wage increase, start complaining about my rate increases to cover the increase in my expenses, while I continue to make a four figure profit.
The politicians that vote for this increase should be giving up a percentage of their six figure salaries to go to the employers that can’t afford it.
Haven’t we seen enough small businesses close this past year?
Michael 10:05 PM 01-26-2021
Originally Posted by Sunshine69:
It’s not as simple as it sounds.
IMHO, it will cause more harm than good.
I can already feel my blood boiling when my clients, that get a raise because of the minimum wage increase, start complaining about my rate increases to cover the increase in my expenses, while I continue to make a four figure profit.
The politicians that vote for this increase should be giving up a percentage of their six figure salaries to go to the employers that can’t afford it.
Haven’t we seen enough small businesses close this past year?
Exactly right. I had a brick and mortar where I employed seven in Palm Desert, CA. I didn't pay myself for 2 years trying to get it off the ground. I was in debt $200k because of how difficult it was paying for workers comp, building and equipment leases, city and state taxes. I figured close up the building but have my employees work from home online. They state said I couldn't use them as private contractors. So instead of keeping them employed, I had to lay everyone off. I guess that is where workers comp comes in play. It’s not as simple as it sounds.
IMHO, it will cause more harm than good.
I can already feel my blood boiling when my clients, that get a raise because of the minimum wage increase, start complaining about my rate increases to cover the increase in my expenses, while I continue to make a four figure profit.
The politicians that vote for this increase should be giving up a percentage of their six figure salaries to go to the employers that can’t afford it.
Haven’t we seen enough small businesses close this past year?
So no more brick and mortar. Everything is now online with commissioned payouts with people in other states. These politicians have no idea what its like to run a business. We absorb all debt while they are salaried by tax payers with a lifetime pension and health insurance.
Josiegirl 02:38 AM 01-27-2021
While I agree with many points you all have made, I'm still sitting on the fence. What happens to the families who are both in minimum wage jobs and can't even support their families? Can we make further education more accessible and affordable for them? And what about the people who are unemployable for various reasons so have to resort to the minimum wage jobs and still have to rely on financial assistance for most of their needs?
Those minimum wage rates might be fine for high school kids but what about parents who cannot get traction in this economy for whatever reason?
This is in no way meant to disagree with any of what's been said but only to further discussion. I completely agree that when minimum wage increases, so does everything else. It only makes sense.
It feels like an endless cycle that never really helps anyone.
Those minimum wage rates might be fine for high school kids but what about parents who cannot get traction in this economy for whatever reason?
This is in no way meant to disagree with any of what's been said but only to further discussion. I completely agree that when minimum wage increases, so does everything else. It only makes sense.
It feels like an endless cycle that never really helps anyone.
Cat Herder 04:18 AM 01-27-2021
I don't understand why so many seem to forget that having more than one job is the norm for many. I don't know anyone who does not, myself included. 
Having only one job was a luxury. If you can't live within your means, you get another job to cover the gaps or you do without things. Pretty simple concept.
If you can't afford to live in a city, then move to where you can. Again, pretty simple concept.
No one gets to start at middle class. No one whose parents did not hand that to them ever has. That has not changed. Trade schools exist for a reason. First you get a minimum wage job, age 15-16 to learn good work habits. Then, you learn a trade 16-19, work, then use that income to pay for higher education if higher wages are what you want. You then have your 20's to late 60's to earn those higher wages. You don't start there.
If you choose to have marriage and kids before you learn a trade or get an education, that is your choice. Those are the people, like me, who work more than one job until their kids are old enough for them to go back to school. It is a short period of time, it does not preclude you from learning a trade, going to college or working for the rest of your life.
It is all a choice. Marriage and kids are not mandatory and someone else's choices are not my responsibility.
Raise the minimum wage and everything else goes up right with it. Don't you remember 2009? Go ahead, I will just raise my rates again, too.
Having only one job was a luxury. If you can't live within your means, you get another job to cover the gaps or you do without things. Pretty simple concept.If you can't afford to live in a city, then move to where you can. Again, pretty simple concept.
No one gets to start at middle class. No one whose parents did not hand that to them ever has. That has not changed. Trade schools exist for a reason. First you get a minimum wage job, age 15-16 to learn good work habits. Then, you learn a trade 16-19, work, then use that income to pay for higher education if higher wages are what you want. You then have your 20's to late 60's to earn those higher wages. You don't start there.
If you choose to have marriage and kids before you learn a trade or get an education, that is your choice. Those are the people, like me, who work more than one job until their kids are old enough for them to go back to school. It is a short period of time, it does not preclude you from learning a trade, going to college or working for the rest of your life.
It is all a choice. Marriage and kids are not mandatory and someone else's choices are not my responsibility.
Raise the minimum wage and everything else goes up right with it. Don't you remember 2009? Go ahead, I will just raise my rates again, too.