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$15 Minimum Wage Battle Moves To Other Industries


Tiberius

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Panera Bread is doing a redesign of it's stores, surprise, no more order takers....

 

http://finance.yahoo.com/news/panera-bread-redesigned-restaurants-fix-191645385.html

I'm not a Panera Bread kind of person, but every time I drive by one I always notice it because my brain inserts a T in the middle

 

Edited by /dev/null
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  • 1 month later...

http://www.zerohedge.com/news/2016-03-06/chart-no-minimum-wage-supporting-socialist-wants-you-see

 

 

The Chart That No Minimum-Wage-Supporting Socialist Wants You To See via The Foundation for Economic Education,

 

A new report from JP Morgan Chase & Co. finds that the summer employment rate for teenagers is nearing a record low at 34 percent. The report surveyed 15 US cities and found that despite an increase in summer positions available over a two year period, only 38 percent of teens and young adults found summer jobs.

 

This would be worrying by itself given the importance of work experience in entry-level career development, but it is also part of a long-term trend. Since 1995 the rate of seasonal teenage employment has declined by over a third from around 55 percent to 34 percent in 2015. The report does not attempt to examine why summer youth employment has fallen over the past two decades. If it had, it would probably find one answer in the minimum wage.

 

Most of the 15 cities studied in this report have minimum wage rates above the federal level, with cities such as Seattle having a rate more than double that. Recent data from the Bureau of Labor Statistics seen in the chart show exactly how a drastic rise in the minimum wage rate affects the rate of employment.

 

 

20160306_min.jpg

 

 

 

Seattle has experienced the largest 3 month job loss in its history last year, following the introduction of a $15 minimum wage. We can only imagine the impact such a change has had on the prospects of employment for the young and unskilled.

 

Raising the minimum wage reduces the number of jobs in the long-run. It is difficult to measure this long-run effect in terms of the numbers of never materializing jobs. However, the key mechanism behind the model—that more labor-intensive establishments are replaced by more capital-intensive ones—is supported by evidence. That is why recent research suggesting that minimum wages barely reduce the number of jobs in the short-run, should be taken with caution. Several years down the line, a higher real minimum wage can lead to much larger employment losses.

 

Nevertheless, politicians continue to push the idea that minimum wage laws are somehow helping the young “earn a decent wage.” It is important to remember the underlying motives behind pushes for higher minimum wage rates. Milton Friedman characterized it as an “unholy coalition of do-gooders on the one hand and special interests on the other; special interests being the trade unions.”

 

Several empirical studies have been conducted over the course of more than two decades, with all evidence pointing toward negative effects of minimum wage rises on employment levels among the young and unskilled. A study conducted by David Neumark and William Wascher in 1995 noted that “such increases raise the probability that more-skilled teenagers leave school and displace lower-skilled workers from their jobs. These findings are consistent with the predictions of a competitive labor market model that recognizes skill differences among workers. In addition, we find that the displaced lower-skilled workers are more likely to end up non-enrolled and non-employed.”

 

Policy makers who continuously raise the minimum wage simply assure that those young people, whose skills are not sufficient to justify that kind of wage, will instead remain unemployed. In an interview, Friedman famously asked “What do you call a person whose labor is worth less than the minimum wage? Permanently unemployed.”

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  • 1 month later...

California clothing manufacturers fleeing minimum wage hike

 

A fifteen dollar per hour minimum wage is coming to California, so break out the champagne and let’s get this party started! Unless you work in the apparel manufacturing industry, that is, in which case you may want to start looking for some cheaper drinks since you’ll likely be out of a job soon. Once the home to a large segment of the American clothing manufacturing industry, California apparel manufacturers have already been hit by skyrocketing commercial real estate value and rising supply chain costs, but another spike in their labor rates will apparently be the final straw for some of them who are still holding on. (Los Angeles Times)

 

But you keep right on Fighting For 15, folks. I’m sure it will all work out in the end, right?

Sewing.jpg

 

 

 

 

Icarus-Wage.jpg?zoom=2&resize=580%2C421

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Good jib posting a completely useless article.

 

Seriously.

 

"The good news is that there's not really good news, but something that looks like it may be good news for a very small number, but no one really knows what it means overall...but here's a story to make you think there's good news anyway."

 

Tailor-made for the non-thinking nutbags like gatorman.

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From your link:

That argument dissolved this week with the release of the Panama Papers, which reveal the elaborate methods used by the wealthy to avoid paying back the societies that helped them to gain their wealth in the first place.

 

Roads and transportation infrastructure. Educated workforces. Courts and legal systems. Innovations sparked by government funding, such as the internet. No one – no matter how smart or hard working – joins the American or global elite without making use of these shared resources.

 

middle-class families pay their taxes or face consequences, the Panama Papers remind us that the worst of the 1% have, for years, essentially been stealing access to Americans’ common birthright, and to the benefits of our shared endeavors.

 

Worse, many of those same global elite have argued that we cannot afford to provide education, healthcare or a basic standard of living for all, much less eradicate poverty or dramatically enhance the social safety net by guaranteeing every American a subsistence-level income.

Good jib posting a completely useless article.

It refutes the idea that you can say the $15 min has killed jobs

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Los Angeles was once the epicenter of apparel manufacturing, attracting buyers from across the world to its clothing factories, sample rooms and design studios.

But over the years, cheap overseas labor lured many apparel makers to outsource to foreign competitors in far-flung places such as China and Vietnam.

Now, Los Angeles firms are facing another big hurdle — California's minimum wage hitting $15 an hour by 2022 — which could spur more garment makers to exit the state.

 

 

 

 

Last week American Apparel, the biggest clothing maker in Los Angeles, said it might outsource the making of some garments to another manufacturer in the U.S., and wiped out about 500 local jobs.

 

"The exodus has begun," said Sung Won Sohn, an economist at Cal State Channel Islands and a former director at Forever 21. "The garment industry is gradually shrinking and that trend will likely continue."

 

The minimum wage is accelerating changes in the L.A. apparel industry that began decades ago, industry experts said.

 

Marina Neza, 66, was one of the workers who lost her job as part of American Apparel's latest layoffs last week.

 

Neza said she used to make about $500 a week as a sewing machine operator. Over 32 years in the industry, Neza said she's been fortunate to work for many apparel makers in Los Angeles that paid decent wages.

 

But Neza said she's worried about finding another job to make ends meet. Her husband is sick, she said, and can work only part time.

 

"Apparel manufacturing has been my life," she said. "There are many, many companies that have moved out of here. I'm not sure about finding work."

Edited by B-Man
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So dishonest.

 

From b man link:

American Apparel emerged from bankruptcy in February and has been trying to move past a tumultuous two years that saw the ouster of founder Dov Charney, store closures and massive fire sales to clear unsold merchandise.

 

American Apparel appoints former Liz Claiborne CEO as chairman

American Apparel appoints former Liz Claiborne CEO as chairman

In a letter to employees last week, Chief Executive Paula Schneider blamed the workforce reduction on a redesign of our production process that will include making fewer garments throughout the year to cut down on inventory that eventually has to be discounted.

 

 

 

Yes, let's blame the minimum wage!

Edited by gatorman
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