[quote=urbanrealtor][quote=EconProf]We economists are largely in agreement about raising the minimum wage: it will kill jobs.
The recently proposed mild increase in the federal minimum wage would cost about a half-million jobs, according to federal officials.
But the huge jump to $13.09 for San Diego only would have a far more powerful impact on employment within our city limits.[/quote]
EconProf:
That does not make practical sense.
Who works at min wage jobs now?
Its primarily restaurant and very low paid retailers.
Its not as though the Hillcrest McDonalds will become unprofitable because they have an extra hourly cost.
Successful fast food places regularly gross revenues in excess of $500/hr.
If there are 8 crew (a common compliment) all getting a $3/hr raise, that works out to a $24/hr carrying cost increase.
Therefore, its not a great burden.
Furthermore, these workers cannot currently be replaced easily by distant locations or by machines (they are already essentially machine operators and there is no economy in taking lunch in Santee).
Sit-down restaurants will see an increase of similar capacity but, again, this will only be acutely felt in places that overstaff servers (eg: Mr. A’s).
Places like the Olive Garden have a wacky high volume and will not be endangered.
The prices that will rise will be primarily for people who eat out at independent 3 star restaurants.
It will not harm most rank and file min wage workers because they don’t (or at least shouldn’t) eat out very often.
On the retail front: I doubt anyone will be in mourning due to a minor increase in WalMart prices.
In sum:
Very few business will be seriously affected because most are not that weak and their services cannot be easily replaced or relocated.
As per usual, your understanding of the relevant economics is pedestrian at best and foolishly misleading at worst.[/quote]
UR, you are citing busy fast food places in Hillcrest, but the range of minimum wage workers in America covers a wide swath of industries–agriculture, leisure, lodging, mom and pop stores, etc. The jobs are entry level, and almost no one stays at minimum wage for long. Also, almost never is the minimum wage earner the only income source for the household. The handicapped and the risky hire, especially minority youths and high school dropouts get these jobs at the bottom of the income ladder in order to prove themselves and move up from there. I’d rather not cut off the bottom rung of the income ladder for these people.
