NY to raise minimum wage today; when/if it comes, $15 min. wage will likely destroy jobs
by Frank Parlato - posted 5:25 pm, December 31, 2015
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 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.