Los Angeles $15 Minimum Wage

[mp170.6]

The LA City Council voted 14-1 to raise the minimum wage to $15 by the year 2020. 

 

Prediction 1:  LA loses maybe 10-20% of its restaurant sector by the year 2030.  With everything else being more expensive, eating out will become more of a luxury. 

Prediction 2:  Youth unemployment will permanently exceed 25% by 2020, if not sooner. 

[Stradling]

Increased minimu wage is not the answer.

[TobiasFunke]

Can't wait to be on here in 2030 to see if you're right or not MP

[Tank]

i like that they're doing it gradually, a dollar a year. that seems a lot more smarter than doing it all in one fell swoop, which i'm sure is what all these 19 year olds were hoping for.

[Catwhoshatinthehat]

Prediction 3 - life for those making minimum wage doesn't really improve and they still blame and vilify the "rich."

[DowningRules]

Is there a clause in the new law that says those who earn minimum wage can have a maximum of 1 child?  That might actually have a more profound affect on the poverty level for LA.

[mp170.6]

Can't wait to be on here in 2030 to see if you're right or not MP

 

Can we mark a date on the calendar? 

[mp170.6]

Hey Stradling, do you know if California labor law allows part-time employees to be salaried for say, 20 hours a week?

[Brandon]

Just saw this on the FB feed from a late 30's chick in Costa Mesa with two kids from different dads that is a lifer in the retail world.

 

She's all about getting hers or spending others money for the sake of equality.

[Jason]

Less fast food joints around and America gets healthier.

[Adam]

Prediction 4 - I get a lot more clients! 

[Catwhoshatinthehat]

The difference between a $15/hr job and 9$/hr job is huge. $1,000 a month! 

 

Your post may be sarcastic but given that it's the internet it's hard to tell.  That's an additional $1,000 before taxes.  Also individuals who make minimum wage and currently receive aid in the form of food stamps, WIC, the earned income credit, etc. may see some of those benefits reduced with a higher income.  

 

There was an article in one of the papers floating around work this week that talked about how to afford a 2 bedroom in OC costing ~$1,600 a month someone needs to make $32 an hour.  Now fun with numbers aside like how they decide 1 person needs 2 bedrooms (guessing kids) and the fact that I think that that's a high rent for some (low for others) areas it tells me that people expecting to survive on minimum wage is more the problem than the wage itself.  If you want to raise minimum wage go ahead but it will never be enough for a lot of people and it will hurt businesses when those costs get passed on to consumers.  

[Tank]

Your post may be sarcastic but given that it's the internet it's hard to tell.  That's an additional $1,000 before taxes.  Also individuals who make minimum wage and currently receive aid in the form of food stamps, WIC, the earned income credit, etc. may see some of those benefits reduced with a higher income.  

 

There was an article in one of the papers floating around work this week that talked about how to afford a 2 bedroom in OC costing ~$1,600 a month someone needs to make $32 an hour.  Now fun with numbers aside like how they decide 1 person needs 2 bedrooms (guessing kids) and the fact that I think that that's a high rent for some (low for others) areas it tells me that people expecting to survive on minimum wage is more the problem than the wage itself.  If you want to raise minimum wage go ahead but it will never be enough for a lot of people and it will hurt businesses when those costs get passed on to consumers.  

 

the one thing i keep waiting for is some CEO or small business owner to say is how if labor costs go up, so will the price of their product. if the minimum wage jumped to $15 today for everyone but the prices of products, food, etc. stayed exactly the same, the minimum wage worker comes out clearly ahead. but spread over time, and given that prices will continue to go up, it's going to end up being a zero sum gain for those same workers.

[mp170.6]

The mind-boggling part about this is how teenagers and college students looking for work might have to commute long distances to find jobs outside of the $15/hr zone. 

 

With gasoline and car expenses, not to mention all the wasted time commuting, they will be worse off than they currently are right now. 

[mp170.6]

A 40 hour a week job at $15/hr would pay an individual $31,200 a year. ~$2,600 a month before taxes. 

 

A 40 hour a week job at $9/hr pays an individual $18,700 a year. ~$1550 a month before taxes.

 

 

At 2600 a month one could easily afford $700 a month for rent and utilities, a car payment under 200/mo, simple health insurance, and still have about about $1000 month for food, fuel, stuff. Which is more than enough. 

 

 

It's a huge difference. The difference between clothed, fed, healthy, and sheltered.

 

No sarcasm. 

 

These people already qualify for various forms of welfare. 

 

I don't know what the maximum payout is compared to the minimum wage hike, but it seems to be shifting (or adding) a burden to business owners to pay the "welfare" payments instead of sharing them among all taxpayers...not that I prefer the latter. 

 

For a state that prides itself on public colleges and universities, leave it to other politicians to remove the incentive to attend these schools.  The way things are going, why bother finishing high school? 

[Catwhoshatinthehat]

A 40 hour a week job at $15/hr would pay an individual $31,200 a year. ~$2,600 a month before taxes. 

 

A 40 hour a week job at $9/hr pays an individual $18,700 a year. ~$1550 a month before taxes.

 

 

At 2600 a month one could easily afford $700 a month for rent and utilities, a car payment under 200/mo, simple health insurance, and still have about about $1000 month for food, fuel, stuff. Which is more than enough. 

 

 

It's a huge difference. The difference between clothed, fed, healthy, and sheltered.

 

No sarcasm. 

 

Your scenario assumes a single individual who would then be moved into the 15% federal tax bracket and would no longer qualify for the EITC unless they itemize which the vast majority in that case don't.  That $1,000 is even less than most people in that situation think it is because of the overall implications to their tax situation.    

 

That aside the problem isn't the fact that someone needs more money as much as it's the fact that they expect to survive on minimum wage.  I realize it's supposed to be a livable wage and statistics show it hasn't risen as much over the years as it should have but too many people expect to survive on it these days and more importantly to raise kids on it.  They'd be better served by learning a valuable skill or getting training to increase their income instead of rallying for a raise to minimum wage.  

[Jay]

The difference between a $15/hr job and 9$/hr job is huge. $1,000 a month! 

 

When you're not paying taxes

[Blarg]

If any of you would just take one moment and think about the trickle up affect you will be astonished at how much California's income tax will have to rise to support this.

 

It's not about the minimum wage of unskilled labor making what would be close to lower middle class wage. It is about the amount of Government and Union wage earners that will demand salary increases to keep their wage in alignment of where they were in relationship to unskilled labor.

 

And you haven't touched upon welfare that will have to stay in some sort of balance with a skyrocketing inflation of wage and subsequently the price of living essentials.

 

Welcome to Greece.

[gotbeer]

The mind-boggling part about this is how teenagers and college students looking for work might have to commute long distances to find jobs outside of the $15/hr zone. 

 

With gasoline and car expenses, not to mention all the wasted time commuting, they will be worse off than they currently are right now. 

 

Or you could argue that those high school drop outs, non English speakers, cons that are currently making minimum wage will have no chance to find jobs against say a fresh out of college or in college student or experienced person for those $15/hr jobs.  

[Tank]

That aside the problem isn't the fact that someone needs more money as much as it's the fact that they expect to survive on minimum wage.  I realize it's supposed to be a livable wage and statistics show it hasn't risen as much over the years as it should have but too many people expect to survive on it these days and more importantly to raise kids on it.  They'd be better served by learning a valuable skill or getting training to increase their income instead of rallying for a raise to minimum wage.  

 

this should be carved in stone (or at least xeroxed and given to everyone striking/protesting for the minimum wage to be raised).

[Tank]

A 40 hour a week job at $15/hr would pay an individual $31,200 a year. ~$2,600 a month before taxes. 

 

A 40 hour a week job at $9/hr pays an individual $18,700 a year. ~$1550 a month before taxes.

 

 

At 2600 a month one could easily afford $700 a month for rent and utilities, a car payment under 200/mo, simple health insurance, and still have about about $1000 month for food, fuel, stuff. Which is more than enough. 

 

 

It's a huge difference. The difference between clothed, fed, healthy, and sheltered.

 

No sarcasm. 

 

and that's why these same people will apply for a mastercard and run up a debt so big they can never pay it off.

 

if you're trying to survive on a minimum wage job, you better have a roommate or two. 

[Jay]

Minimum-wage jobs are for high school kids.

Once I had a job as an usher in a movie theater. I was only there for the Christmas holiday, I think I was 17. It was at the Egyptian theater in Hollywood, and they were showing Close Encounters. People were lined up around the block to see that movie.

Anyway all the ushers were kids.

Minimum wage in California was $2.50 then.

Edited May 21, 2015 by Jay

[Jay]

This is kind of interesting:

http://www.usinflationcalculator.com

It shows that an item costing $1.00 in 1977 would cost $3.90 today.

So if the minimum wage was $2.50 in 1977, it should be ($2.50 x 3.9) $9.75 today.

[Blarg]

Gas was 50 cents a gallon in 1977.

[arch stanton]

How many minimum wage jobs still actually offer 40 hours a week?