The economy is poor, businesses are struggling to stay profitable, people are still out of work, so let’s do something really smart, let’s double the minimum wage to $15.00 per hour.
From Crain’s afternoon e-blast “City Council Speaker Melissa Mark-Viverito's proposal to nearly double the city's minimum wage to $15 an hour, up from the current $8, would hit small businesses and their customers hardest, forcing them to raise prices, lay off workers, and move or outsource operations outside the city, according to owners, advisers to small firms and leaders of the small—business community.”
Are these people crazy? Do any of them understand economics at all?
The article goes on the list comments from many business owners who are lamenting the possibilities of such a drastic change in labor costs.
Empathy for folks working those minimum wage jobs is admirable, but there is a reason they hold those jobs. They are young and just starting out in the job market on their way to someplace else when they finish their schooling, or they are low skilled workers doing tasks that just about anyone can do. If they are low skilled they have all the opportunities in the world to obtain skills that will move them up the pay ladder. No one has forced them to not avail themselves of all the myriad of learning programs, schools and trade schools, all the certificate courses or internship opportunities that abound.
Shall we reward everyone simply because we feel empathy? Are not people somewhat responsible for their own journey through life. Achieving dreams are not guaranteed. Some try and fail, but at least they tried. And if they fail is it not up to them to try again. If a dream means something individuals will try and try again. Always remember that Abraham Lincoln, the greatest President of all time, failed twelve times before being elected to the presidency.
From a business perspective, especially service businesses, there is already severe push back on prices. If you polled those companies that have survived the recession, they will tell you that they are working harder for less return than ever before. There is no where for prices to go, every uptick drives customers away. With shrinking margins, increasing health insurance costs courtesy of Obamacare, higher taxes, etc., etc. where in the world does Ms. Mark-Viverito think the money for such dramatic wage increases come from. If she can let me know where this money is hiding I would be glad to take a look at how I might use it to stay in business. Ms. Mark-Viverito is sealing the fate of many of the businesses barely hanging on waiting for the economy to come back to full strength.
These types of developments are not a surprise. They were foretold with the election of the city’s first openly progressive Mayor, Bill de Blasio. Just as Obama had promised to transform the country so has de Blasio promised to double down in NYC. His agenda may sound just peachy on the surface – give more to everyone – for every reason – all the time. A nirvana, if you will. But when the well is dry, who will be paying the bill then. It won’t be businesses, since they will be gone. It won’t be the wealthy because they will flee.
It is bad enough that our world reputation is becoming a laughing stock but to now dismantle the greatest city on the face of the earth is just going too far.