CT raises minimum wage to $10.10/hr

[DSUrocks07]

http://www.nbcmiami.com/news/national-i ... FB_MIBrand

Gov. Dannel Malloy signed into law Thursday a bill that will raise Connecticut's minimum wage to $10.10 an hour by 2017, the highest for any state in the country.

"It's time to get people out of poverty," Malloy said just after he signed the bill at Cafe Beauregard in New Britain, which he visited earlier this month President Barack Obama earlier this month when the president was touting a $10.10 national minimum wage.

He said it was one of his "proudest days as governor."

Both houses of the State General Assembly approved the bill Wednesday. The Democratic governor signed it Thursday at a New Britain restaurant where he, President Barack Obama and three other New England governors ate earlier this month, before Obama urged Congress to increase the federal minimum wage during a speech at Central Connecticut State University.

"What we want to make sure is that men and women in our state that work 40 hours a week do not live in poverty and have the opportunity to raise their families as we, ourselves would want to raise our own," Malloy said.

The bill will increase the minimum hourly wage to $9.15 in January, $9.60 in January 2016 and $10.10 in January 2017. State officials say 70,000 to 90,000 people now earn the minimum wage in Connecticut.

Republicans criticized the increase as another action that makes Connecticut uncompetitive.

Rhode Island must be celebrating right now.

[ASUG8]

Sounds like CT is about to experience some very localized inflation relative to its neighbor states.

[BlueHen86]

Sounds like CT is about to experience some very localized inflation relative to its neighbor states.

Will be interesting to see how this plays out. Regardless, no matter what happens both parties will claim that they are right.

[DSUrocks07]

Sounds like CT is about to experience some very localized inflation relative to its neighbor states.

Will be interesting to see how this plays out. Regardless, no matter what happens both parties will claim that they are right.

The people who keep their jobs will be ecstatic, those who will be let go will be disappointed but at least they can draw unlimited unemployment. Win-win for Donks.

Companies can choose to leave for neighboring states, those that stay will be forced to make cutbacks. Win-win for Conks.

Meanwhile for the average American, the cycle continues.

[Ivytalk]

Bridgeport, CT: still the "Armpit of New England."

[kalm]

Will be interesting to see how this plays out. Regardless, no matter what happens both parties will claim that they are right.

The people who keep their jobs will be ecstatic, those who will be let go will be disappointed but at least they can draw unlimited unemployment. Win-win for Donks.

Companies can choose to leave for neighboring states, those that stay will be forced to make cutbacks. Win-win for Conks.

Meanwhile for the average American, the cycle continues.

Employment rates tend to not go down when the minimum wage increases.

[grizzaholic]

And I can hear the rest of the businesses leaving CT. Good. CT can fall off the planet for all I care.

[CAA Flagship]

Bridgeport, CT: still the "Armpit of New England."

Wait. I thought you would say New Haven.

[GannonFan]

The people who keep their jobs will be ecstatic, those who will be let go will be disappointed but at least they can draw unlimited unemployment. Win-win for Donks.

Companies can choose to leave for neighboring states, those that stay will be forced to make cutbacks. Win-win for Conks.

Meanwhile for the average American, the cycle continues.

Employment rates tend to not go down when the minimum wage increases.

And consumer purchasing power tends not to go up either. Ergo, status quo.

[ASUG8]

And consumer purchasing power tends not to go up either. Ergo, status quo.

Maybe worse.
Wages for xx% rise - WIN
Prices for everyone rise - LOSE
Marginal businesses shut down - LOSE
Some businesses relocate - LOSE
Unemployment increases - LOSE
Housing oversupply - LOSE
Housing/rent prices fall - LOSE

[kalm]

Employment rates tend to not go down when the minimum wage increases.

And consumer purchasing power tends not to go up either. Ergo, status quo.

Relax Ganny. You know I'm neutral on this issue.

[DSUrocks07]

Employment rates tend to not go down when the minimum wage increases.

And consumer purchasing power tends not to go up either. Ergo, status quo.

[kalm]

And consumer purchasing power tends not to go up either. Ergo, status quo.

Maybe worse.
Wages for xx% rise - WIN
Prices for everyone rise - LOSE
Marginal businesses shut down - LOSE
Some businesses relocate - LOSE
Unemployment increases - LOSE
Housing oversupply - LOSE
Housing/rent prices fall - LOSE

Again, unemployment doesn't tend to increase, and prices are driven more by demand. I haven't looked to see how demand increases.

[ASUG8]

Maybe worse.
Wages for xx% rise - WIN
Prices for everyone rise - LOSE
Marginal businesses shut down - LOSE
Some businesses relocate - LOSE
Unemployment increases - LOSE
Housing oversupply - LOSE
Housing/rent prices fall - LOSE

Again, unemployment doesn't tend to increase, and prices are driven more by demand. I haven't looked to see how demand increases.

Kind of depends on price elasticity within certain industries. If you're a small guy and can't pass on your cost increases to the consumer, then it's not a stretch to say those type of companies will either be forced to close or survive on diminished profit margins.

[GannonFan]

And consumer purchasing power tends not to go up either. Ergo, status quo.

Relax Ganny. You know I'm neutral on this issue.

It's all good - just countering your post that something good comes of tinkering every now and then with the minimum wage. Anything positive or negative from minimum wage changes (and there are both) are very short term and are corrected for after the short term. Therefore, things don't change and nothing is improved nor harmed. It's a perfect political talking point that accomplishes nothing but political talking points.

[kalm]

Relax Ganny. You know I'm neutral on this issue.

It's all good - just countering your post that something good comes of tinkering every now and then with the minimum wage. Anything positive or negative from minimum wage changes (and there are both) are very short term and are corrected for after the short term. Therefore, things don't change and nothing is improved nor harmed. It's a perfect political talking point that accomplishes nothing but political talking points.

I like this the theory. But someone also has to correct the right wing talking points.

[DSUrocks07]

[Chizzang]

I just talked to a kid at a McDonalds (employee) who is making $12.75 in King county (Seattle area)
and this McDonlads has 2 Big Macs for $5 and a $.99 cent menu / Plus any size coffee for $1.00

It is far more difficult to assess the effects of high minimum wage than most people think it is...
For one thing / if you can't afford to pay somebody $11 you sure as hell can't afford to pay them $8 either

That's a difference of exactly SQUAT as far as weekly costs

[YoUDeeMan]

I just talked to a kid at a McDonalds (employee) who is making $12.75 in King county (Seattle area)
and this McDonlads has 2 Big Macs for $5 and a $.99 cent menu / Plus any size coffee for $1.00

It is far more difficult to assess the effects of high minimum wage than most people think it is...
For one thing / if you can't afford to pay somebody $11 you sure as hell can't afford to pay them $8 either

That's a difference of exactly SQUAT as far as weekly costs

Huh?

20 employees at 40 hours per week X $3/hour difference = $2,400 per week. That's $124,800 per year...and that doesn't include the additional taxes to the employer tacked on to the wage increase...or other benefits.

For a small business, that can make a big difference.

[kalm]

I just talked to a kid at a McDonalds (employee) who is making $12.75 in King county (Seattle area)
and this McDonlads has 2 Big Macs for $5 and a $.99 cent menu / Plus any size coffee for $1.00

It is far more difficult to assess the effects of high minimum wage than most people think it is...
For one thing / if you can't afford to pay somebody $11 you sure as hell can't afford to pay them $8 either

That's a difference of exactly SQUAT as far as weekly costs

Huh?

20 employees at 40 hours per week X $3/hour difference = $2,400 per week. That's $124,800 per year...and that doesn't include the additional taxes to the employer tacked on to the wage increase...or other benefits.

For a small business, that can make a big difference.

Beat me too it.

[BlueHen86]

I just talked to a kid at a McDonalds (employee) who is making $12.75 in King county (Seattle area)
and this McDonlads has 2 Big Macs for $5 and a $.99 cent menu / Plus any size coffee for $1.00

It is far more difficult to assess the effects of high minimum wage than most people think it is...
For one thing / if you can't afford to pay somebody $11 you sure as hell can't afford to pay them $8 either

That's a difference of exactly SQUAT as far as weekly costs

Huh?

20 employees at 40 hours per week X $3/hour difference = $2,400 per week. That's $124,800 per year...and that doesn't include the additional taxes to the employer tacked on to the wage increase...or other benefits.

For a small business, that can make a big difference.

It's probably more than that. McDonald's is open for about 16 hours a day, 7 days a week (112 hours per week). If you have 10 employees working at a time you end up with 10 employees at 112 hours per week X $3/hour difference = $3,360 per week.

My number may be a little high (some current employees might be making more than minimum, so for them the increase is less than $3). I also guessed at number of employees working at a time, 10 seemed reasonable.

Either way, it is a big hit.

[YoUDeeMan]

Huh?

20 employees at 40 hours per week X $3/hour difference = $2,400 per week. That's $124,800 per year...and that doesn't include the additional taxes to the employer tacked on to the wage increase...or other benefits.

For a small business, that can make a big difference.

It's probably more than that. McDonald's is open for about 16 hours a day, 7 days a week (112 hours per week). If you have 10 employees working at a time you end up with 10 employees at 112 hours per week X $3/hour difference = $3,360 per week.

My number may be a little high (some current employees might be making more than minimum, so for them the increase is less than $3). I also guessed at number of employees working at a time, 10 seemed reasonable.

Either way, it is a big hit.

BTW, I wasn't targeting Mickey D's employment numbers, I was using 20 employees for easy math.

Besides, McDonald's has many advantages over other small businesses (especially volume discounts on their supplies), so they would get hurt less than other businesses.

Chizzy must have had a brain fart on that post of his.

[kalm]

BTW, fuck McDonalds, they discontinued their hot mustard. What am I suppose to dip my fries into?

[OL FU]

I realize there are exceptions such as two wage earner families, teenagers and perhaps others, but I keep hearing the purpose is to allow people who work to earn a livable wage. (so in some respects those mentioned above should be exceptions). So the person that needs to earn that living wage is more than likely a single parent. ( I know some aren't parents). But I still don't see how raising the minimum wage for a single parent does anything but reduce in almost equal proportion the amount of government subsidies (rent subsidy, food stamps, earned income credit) that person is going to get. So what does this accomplish?

Now don't get me wrong. I am not necessarily opposed, I just think it is one of those arguments that sounds good and accomplishes a whole lot less than the proponents push.

[Chizzang]

Meh... I stand by my assessment / You guys are pretty dramatic about those 3 dollars
Read the FORBES article where they do the math if McDonalds emplyeees were paid $15 an hour how much would a Big Mac cost... answer: The Same

The average McDonald's in King County Washington executes $2,070,750. in transactions dollars a year
(not including sales tax)

The average daily cost paid out in salary to employees over any given 24 hour period is $1980
That's something like 18 employees plus the managers & assistants

That three bucks is NOT a problem at all
You're doing something like $12.5K in transactions
subtracting $2K in Salary paid out
and Food costs at McDonalds NEVER exceed 33%

Tell me how this is BAD for McDonalds..?

BTW:
I know a guy who owns 4 franchises here and he could care less about minimum wage hikes