Raising Minimum Wage

Raising Minimum Wage

In this article, it talks about how Seattle passed a law in 2014 to raise the minimum wage to $15/hour by 2021. But, as positive as this seems, this has left implications with most businesses in the Seattle/Tacoma area. For an example, when this law was first passed in 2014, a local burger-joint's employees began to work less hours, even as their wages rose. The president of Dick's even mentioned that that the company had to raise their food prices overall, to makeup for the cost of the labor by itself. Some other businesses similar to Dick's have also seen their costs go up, and even though Dick's already gives their workers above minimum wage pay, the pressure for higher wages brings businesses to various predicaments, even if they're already above the minimum threshold.  Seattle's law has also opened an even larger debate about wage increases, and it's greater impact. This debate has become a central issue with the top two Democratic candidates, Joe Biden and Bernie Sanders. They're both talking about this law as a way to appeal to more of their working-class voters as well.
On the other hand, this raised minimum wage has been greatly beneficial and life-changing to many working people. One of these people being Martin Johnson, a man who works three minimum wage jobs. He said that he felt like the increase of minimum wage gave workers dignity and made them feel better about themselves overall. But, the thoughts of the increase in minimum wage is varied amongst workers and business owners. On the economic side of this debate, it seems that economists haven't able to come to a consensus either. Their studies have shown that the effect of Seattle's law have had different effects dependent upon the groups of workers studied. The conflicting studies shown have also brought into light a broader debate about "what a $15 federal minimum wage might do for businesses and workers nationwide."
The increase in minimum wage in Seattle has given businesses many mixed feelings, emotions, and results. When the law first passed, the CEO of Fire and Vine Hospitality, Chad Mackay, began to reevaluate his entire business model. Even though Fire and Vine has paid above the minimum wage for such a long time, the company still moved to a commission-based model. These wage increases also haven't hurt his business, but he's actually doubled in size. While Fire and Vine flourished under the increased minimum wage, some businesses have done the complete opposite. Sitka and Spruce paid workers above the minimum wage, but their lease ran out, the business unsustainable with the rent, fees, and taxes in addition to the increase in minimum wage. This was the same issue that another business owner, Eric Tanaka was dealing with. He decided not to renew the lease on his restaurant, and rather tried to move forward with his other businesses, with less labor-intensive models. In general, the increase in minimum wage, and less people wanting to go into the restaurant industry, are two major factors that challenge both workers and the business owners.

https://www.cnbc.com/2020/01/02/seattle-passed-a-15-minimum-wage-law-in-2014-heres-how-its-turned-out-so-far.html

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