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NY to raise minimum wage today; when/if it comes, $15 min. wage will likely destroy jobs

Filed under: News, State Politics
14005293714669New York is one of 16 states increasing minimum wages for 2016.

New York state’s base minimum wage will rise from $8.75 an hour to $9. Fast-food workers minimum wage rises to $10.50 in New York City and $9.75 elsewhere in the state.

The base h
ourly rate for restaurant servers and other tipped workers will increase to $7.50.

The increase in the minimum wage was passed by lawmakers in 2013. The raises for fast-food employees and tipped workers were approved this year by Gov. Andrew Cuomo.

Cuomo wants to phase in a $15 minimum for all workers, a proposal lawmakers will debate next year.

Generally minimum wage hikes give employers a combination of three choices: Take less profits, raise prices for consumers or lay off some employees.

If it is fair that people should get $15 an hour for working at, for example, a fast food restaurant, then people should be willing to pay more money for fast food products.

The increase in labor costs for example of a fast food restaurant which has 10 full time employees who will get a $5 increase will cost the fast food restaurant $100,000 per year.

Clearly the entire $100,000 will not be offset by the owner taking less profits.

Some will likely go toward increased prices of hamburgers and some through not hiring new or laying off workers.

A $15 minimum wage is going to destroy many jobs.

  • BufChester

    Why have a minimum wage at all? Let the market dictate how little people can be paid. Then see how many people can afford to eat at McDonald’s.

  • jerkwagon420

    Tax breaks for the 1% and corporations are doing such a great job with the job growth let’s make sure nothing ever trickles down to the rest of the world.

  • jamesholstun

    Nonsense, Mr. Parlato:
    “In a letter to President Obama and congressional leaders urging a minimum wage increase, more than 600 economists, including 7 Nobel Prize winners wrote, ‘In recent years there have been important developments in the academic literature on the effect of increases in the minimum wage on employment, with the weight of evidence now showing that increases in the minimum wage have had little or no negative effect on the employment of minimum-wage workers, even during times of weakness in the labor market. Research suggests that a minimum-wage increase could have a small stimulative effect on the economy as low-wage workers spend their additional earnings, raising demand and job growth, and providing some
    help on the jobs front.'”

    But your concern wasn’t really with the low-wage workers in the first place, was it?