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Comment on:
Publius North
Minimum Wage
1 Comment
Thursday, January, 17, 2008 12:27 PM
MinnesotaMan
writes:
Minimum wage hurts everybody
I'm not aware of any business that actually pays anyone minimum wage, other than to tipped employees, mostly in the hospitality industry which employs nearly 10% of the population, only 2nd to our government.
The non-tipped employees are paid above minimum wage. Tipped hourly
employees in aggregate, generally make more than non-tipped. You never hear a bartender or server ask for a raise. It is incidental to their main source of income... TIPS! The restaurant industry's profits (if you're lucky enough) are dwindling to nothing. Just look at current 10-K's of public restaurant companies. Raising minimum wage and adding universal healthcare will have a devastating impact on an already over-regulated industry. The hospitality industry is the stepping stone for most entry level workers. The effects will be 1) employers will find ways to limit staff, including downsizing and that means less people paying income taxes. 2) non-tipped employees will find it more difficult to get a raise. 3) Consumers will be sharing the hit when their bill comes, causing fewer visits 4) increased unemployment (drag on economy) 5) decreased tax revenue from lower sales. 6) less incentive for operators to develop new units.
How about more vagrancy & crime due to less jobs available for young entry level workers?
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