Posts Tagged ‘Living wage’

Money Doesn’t Grow on Trees

February 3, 2015

Growing up, you might have heard your mother or father saying something like that when you wanted some expensive toy. Maybe you listened to them and learned something about where money does come from. The progressives who are pushing for minimum wage increases do not seem to have listened to their parents. At least it doesn’t seem to occur to them that if the government creates an increase in the cost of business, such as raising taxes or requiring higher wages, the money to pay for the increased costs has to come from somewhere. Either a business must pass on the increased cost to its customers by increasing prices, adjust its practices to reduce impact of the higher costs, perhaps by employing fewer workers, or accept a reduction in profits. For many of the unthinking, the last option is the most desirable, since it is all too commonly believed that profits are somehow selfish and evil. They do not realize that a business’s profit is what the owners of that business get to meet their own expenses and is the repayment for the expenses and risks of starting and running the business. This is especially true for the small business person who is the sole owner of his business, but it is also true for the stock holders of a major corporation. It a business cannot make a profit it must eventually cease to operate and close its doors. It really doesn’t require a PhD in economics or business administration to understand all of this, only the ability to think things through, an ability sadly lacking in all too many. Consider this example, brought by ABC News, of a bookstore in San Francisco, closing due to an increase in the city’s minimum wage.

Independent bookstores have faced tough times for quite a while. In San Francisco, neighborhood businesses have been passionately protected, so it’s hard to believe that an initiative passed by voters to raise the minimum wage is driving a Mission District bookstore out of business.

San Francisco’s minimum wage is currently $11.05 an hour. By July of 2018, the minimum wage in San Francisco will be $15 an hour. That increase is forcing Borderlands Bookstore to write its last chapter now.

When actor Scott Cox took a job at Borderlands Books he didn’t do it for the money.

“I’ve been a longtime customer of the store,” he said. “I love the people, I love the books.”

The work let him squeak by while nourishing his passion for sci-fi and fantasy.

“Everyone who works here does this because they love books, they love stories, and they love being booksellers,” said book store owner Alan Beatts.

That’s why store owner Beatts found it so tough to post a sign in the front window that the store is closing. “We’re going to be closing by the end of March,” he said.

Borderlands was turning a small profit, about $3,000 last year. Then voters approved a hike in the minimum wage, a gradual rise from $10.75 up to $15 an hour.

“And by 2018 we’ll be losing about $25,000 a year,” he said.

Money doesn’t grow on trees. Alan Beatts cannot simply go to his money tree and shake off a few extra bills. He must come up with the money to pay the higher wages somehow. He cannot increase his prices. Small, independent book stores have long been squeezed by large chains such as Barnes & Nobles who are now being squeezed by Amazon, so any increase in prices will simply drive customers away. I doubt it his bookstore is so overstaffed that he can afford to let many employees go. He cannot continue to run his bookstore if it loses money, so the bookstore must close.

This doesn't really exist.

This doesn’t really exist.

The next part of this article is priceless.

It’s an unexpected plot twist for loyal customers.

“You know, I voted for the measure as well, the minimum wage measure,” customer Edward Vallecillo said. “It’s not something that I thought would affect certain specific small businesses. I feel sad.”

I would say that Mr. Vallecillo wasn’t thinking at all, but then neither were the people in San Francisco’s Board of Supervisors when they decided to let people vote on increasing the minimum wage.

Though it’s caught a lot of people off guard, one group that wasn’t completely surprised was the Board of Supervisors. In fact, they say they debated this very topic before sending the minimum wage to the voters.

“I know that bookstores are in a tough position, and this did come up in the discussions on minimum wage,” San Francisco supervisor Scott Wiener said.

Wiener knows a lot of merchants will pass the wage increases on to their customers, but not bookstores.

“I can’t increase the prices of my products because books, unlike many other things, have a price printed on them,”

Wiener says it’s the will of the voters. Seventy-seven percent of them voted for this latest wage hike.

“Borderlands Books is an phenomenal bookstore, I was just in it yesterday,” Wiener said. “I hope they don’t close. It’s an amazing resource.”

But Alan Beatts said he can’t see a way to avoid it.

Mr. Wiener should have thought of that before, unless they repeal the increase in the minimum wage, Borderlands Books will have to close. The voters voted for the increase. Now, they will have to deal with the consequences.

Business owners don't really have money bins.

Business owners don’t really have money bins.

 

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The Future of Fast Food

November 14, 2013

While automation has eliminated many jobs in the manufacturing sector of the economy, so far the service sector, especially the fast food industry has remained labor intensive, employing hosts of young and unskilled workers. That may be changing, however. Perhaps the future of fast food can be found at Bolt Burgers, a new restaurant in Washington D. C. What makes Bolt Burgers a little different is that when the restaurant opens, the process of ordering and getting your food will be as computerized and automated as possible. The Washington Post has the story.

No restaurant in D.C. has been better outfitted for the iPhone generation than the forthcoming Bolt Burgers. It is a restaurant full of screens — touchscreen systems for ordering your food and making your drinks, tablets at every table, and a 16-foot-wide projected TV screen to watch while you wait for your order.

You can order food without having a single interaction with another human being, which, for millennials who prefer texting and online ordering through Seamless to picking up the phone, is a major plus.

Michael Davidson, Joe Spinelli and other partners at Bolt Burgers are banking on it. When the 3,200-square-foot restaurant opens by Thanksgiving at 1010 Massachusetts Ave. NW, they’ll have put more than 18 months into perfecting the computer systems behind Bolt, a concept they plan to franchise.

There are several ways to order a Bolt burger, and one of them can be done from your office. An online pre-ordering system will allow customers to order in advance for both take-out and dine-in: Give the server your order number when you arrive and, if all goes according to plan, your food will be at your seat within 10 minutes.

If you haven’t pre-ordered, a server will present you with a table number if you plan to dine in. Use that to place your order at one of the touchscreen kiosks, or through the touchscreen tablet at your seat.

One of the technological centerpieces of Bolt Burgers is a no-flip burger grill. The device can cook a six-ounce burger in exactly three minutes, to the exact same level of doneness every time. It can make 1,200 burgers an hour. “I think it’s fantastic,” said Clayton. “I have the confidence that the guy at the grill will hit a button and get a perfect burger every time.”

The restaurant’s opening, in approximately three weeks, will depend on getting all of its systems up and running. “There’s a lot of complicated electronics that have to work,” Davidson said. When Bolt opens, it will seat about 80 people indoors and about 40 on the patio. It’s located in an area near the D.C. convention center that doesn’t yet have much competition — until the restaurants in the new Marriott Marquis open, at least — but is at the intersection of daytime workers, evening residents and out-of-town guests.

I don’t expect to see McDonald’s or Taco Bell doing anything like this soon. The costs of retooling and automating their restaurants would, at present, be far greater than any benefits they might gain from reducing their workforces. That could change if well meaning activists manage to have the minimum wage increased or making fast food restaurants pay their workers a living wage. Then,we could see a lot more places like Bolt Burgers opening up. I know that trying to make a living on $7 an hour is not much fun, but it is better than making $0 an hour, which might very well happen. It is not enough to be well meaning. You have to consider consequences.

 

Raising the Minimum

August 8, 2013

Organizing for Action wants to raise the minimum wage.

David —

Let’s do something about this:

Even though our economy is on its way back, millions of Americans — people who work full time — are still living well below the poverty line.

That’s because they earn the minimum wage — something designed to help make sure that any American willing to work hard and play by the rules has enough to make ends meet. That’s not the reality right now for way too many people.

If a living wage is something you can get behind, then you should join the fight to raise the minimum wage.

President Obama is helping to lead on this issue — and dozens of allied organizations have been working hard to get a minimum wage increase passed by Congress.

There’s a lot to do, and OFA supporters are going to play a big role in making this happen.

If this is something that matters to you, add your name today and help fight for a better bargain for working Americans:

http://my.barackobama.com/Raise-the-Minimum-Wage

Thanks — more soon,

Jon

Jon Carson
Executive Director
Organizing for Action

Actually, thanks to the president’s signature piece of legislation, Obamacare, a lot of people have had to be content with part time work. But I think raising the minimum wage is a terrific idea. Why not increase the cost of labor so that companies have to raise prices or hire fewer people? Maybe we can get unemployment back above 8% again. Maybe, if we raise it enough, we can have another recession. Many people on minimum wage are young people just entering the job market. If we make it harder for them to find jobs, they can live at home with their parents. We could offer them unlimited unemployment benefits and get an entire generation dependent on the government for survival. Sounds like a plan.

What I am going to say now may seem mean. I hope not, since that is not my intention. I think that if you are living on minimum wage and are not just entering the work force, then something is wrong. You should take stock of yourself and consider what skills and experience you may have that will get you a job that pays better than minimum wage. If you do not have such skills or experience, then you need to find out how to get them. You should also take a look at your work ethic. Do you show up for work on time? Do you perform the duties of your job, and maybe a little more? Are you someone your boss can depend upon? If not, than you must become the sort of person that people can rely on. Whatever you do, I think that you can do better than minimum wage.

This is the difference between Jon Carson’s outlook and mine. People like him want you to work for minimum wage and look to the government for any improvement in your pitiful life. I think you can do better than that. I think that if you apply yourself, you can earn a living wage.

 


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