Seattle restaurants suffer worse job loss since the great recession

According to a report released Sunday by the American Enterprise Institute (AEI), the $15 minimum wage has caused Seattle restaurants to lose 1,000 jobs — the worst decline since the 2009 Great Recession.

“The loss of 1,000 restaurant jobs in May following the minimum wage increase in April was the largest one month job decline since a 1,300 drop in January 2009, again during the Great Recession,” AEI Scholar Mark J. Perry noted in the report.

The citywide minimum wage increase was passed in June of last year. The measure is designed to increase the city minimum wage gradually to $15 an hour by 2017. The first increase under the plan was to $11 an hour in April. According to the report, Seattle restaurants have already faced severe consequences as a result. In contrast, in the six years since the 2009 financial crisis, the industry has been recovering in areas without the $15 minimum wage.

REPORT: Seattle Restaurants Suffer Worse Job Loss Since The Great Recession | We Are Change  (dailycaller) According to a report released Sunday by the American Enterprise Institute (AEI), the $15 minimum wage has caused Seattle restaurantshttp://wearechange.org/report-seattle-restaurants-suffer-worse-job-loss-since-the-great-recession/
Cezars avatar Countries & Places
Share
1 67

Thats because the Mariners wasted all that money on Robinson Cano... It hurt Seattle big time

This comment was deleted by its author.
@2125959

see my response to Budwick.
ge increases help everyone except the richest few.

http://amirite.com/783351-seatt...ession/2126764

This comment was deleted by its author.
@2126875

Yes and no.
There are many factors
there is not a one-to-one relationship
between wages and prices

Increasing wages has to
(by application of accepted
economic "laws")
"increase the circulation of money
in the economy."

It does not directly result in inflation.

Inflation is influenced
primarily by two forces
"money supply"
(which is completely
independent of wage rate
and controlled by the government
or the ruling class)

and
"productivity"
(which can be influenced
by wage rate but
usually positively not negatively
as you suggest)

It is a mistaken belief
that wage increases
results in higher prices directly.

Prices are set by the market
(supply and demand).

Higher wages absolutely
decrease profit but
they only affect prices
when they stimulate demand,

Loss of profit must be born
by the owners if they
want to stay in business.

The inflation we see in
Seattle (1.4%) is the result
of the wage increase
stimulating more buying
(demand) by the lower class.

Your argument is the classic
"labor reserve" capitalist argument -
"their needs to be lots-and-lots of very poor people so that the wealthy class can enjoy the fruits of their labor;"

This the principle displayed so well in Hunger Games and played out prior to the French and Russian revolutions: vast chasms between the rich and poor, the rich reaping profits and the poor on the verge of starvation.
There we also see
rampant inflation
because of low demand
and low productivity.

The ruling class does not feel it
because they are so excessively rich.

It is a misnomer that
increased wages
directly increase prices.

It is also a mistake to believe
that controlled inflation
is always bad, and to forget
the mitigating effect
of increased productivity on inflation.

This user has deactivated their account.
@2126938

That is a completely
different argument than
your premise that
minimum wage laws causes inflation,
(which is fallacious.)

If you want to debate
international trade agreements
you will need to find
another partner,
because I am (mostly)
in your side -
my disagreement with
your latest statement
is around the "need"
to return to a manufacturing base.
I completely disagree with that,

We need to
stimulate demand for
our services in overseas markets.

Manufacturing will never return to the US,

it is a dirty and dangerous
and wholly unnecessary
in a post-industrialized society.

We need to export services not goods

This user has deactivated their account.
@2126960

Services that need additional export stimulus are mostly in the entertainment industry and the R&D field.

If you don't think war is a manufactured "machine" I suggest you look again.

America will ever again be the manufacturing superpower, that ship has sailed.

This user has deactivated their account.
@2126969

I don't disagree with anything here
R&D support manufacturing
but the R&D can be done here
and the production can be done there

Everyone pays for entertainment
that what the "peanut gallery" is for
to collect loose change
from the poorest people
as they watch the show

Depends on the entertainment:
Football and Gladiators
are pretty damn empowering
porn and romance stories, not so much

This user has deactivated their account.
@2127007

First of all
sending (and charging)
for football entertainment
in other countries
is good for America.
I am not talking about
US citizens watching it,
I am talking about building
a market overseas
so that audience can pay
for viewing and
be awed by the power
of the game.
(btw, I don't watch it
but it is a huge money maker
so someone sure as heck is
might as well be viewed world wide)

Second,
I don't want to send
manufacturing overseas,
it already went on its own!

I am a realist and
we will never get it back.

We need to move on
and realize that America
needs to think beyond
manufacturing and
stop clinging to it like a jilted lover.

America needs to move on
to the next big phase
in development.

As I said, that ship has sailed.

America needs to do what we do best
not manufacturing
but being the first at
whatever the next big thing is
(it is not manufacturing
that was the last big thing)

whatever it is...
we need to do it first, and best

This user has deactivated their account.
@2127023

"has always been"

past tense

You said it, not me

Stop living in the past

It is gone, and it will never come back

This user has deactivated their account.
@2127045

The times they are a' changing

This user has deactivated their account.
@2127226

So are those that refuse to change

This user has deactivated their account.
@2127286

It is happening on its own.

Prior to now there was no alternative.

What manufacturing base does, for example Switzerland have?

@VicZinc The times they are a' changing

Times are changing.

Basic economics is not.

@VicZinc "has always been" past tense You said it, not me Stop living in the past It is gone, and it will never come back

Yeah, cuz the new economic math says that if you lose your job, you're ahead of the game now, almost middle class. Even Pelosi says that unemployment is good for the economy.

I didn't think anyone actually believed that crap - but here you are!

@VicZinc see my response to Budwick. ge increases help everyone except the richest...

And the story I cited illustrates exactly the opposite. Many, many low paid workers lost their jobs. A handful of workers that were already doing OK got to keep their jobs.

@Budwick And the story I cited illustrates exactly the opposite. Many, many low paid workers lost their jobs. A handful of...

Data from DLS shows employment up in all industries.

No idea what you are talking about.

I posted the link. Follow it.

This user has deactivated their account.
@2127249

Love those guys

This user has deactivated their account.
@2127271

No
Because increase demand from increased wages stimulated the economy and resulted in more hiring. Just as the economic theory said it would.

This user has deactivated their account.
@2127283

I can only go by
the data and the
theory as it was

@VicZinc And most got better jobs. Sorry to fight your fear mongering with actual data.

That's fun to think about, isn't it? Of course, it's not documented any where, but still, why not just say it?

This user has deactivated their account.
@2128795

Exactly
The economy did not collapse as some predictions.

Let's check again in 6 months.
Inflation and unemployment are stable now

This user has deactivated their account.
@2128872

Ok we'll check back in 5years

This user has deactivated their account.
@2128884

Not that I trust the gov.
but they do it for us.
That report I posted
shows modest employment gains
in all sectors
not at all what the naysayers predicted

and the 1.7% increase in CPI in Seattle
compares to 1.01% nation wide.

We'll see as time goes by
but I can site study after study that
shows wage increases do not
have the negative effect that
business owners claim they do

the doom and gloom predictions
simply do not prove out historically

I will be more than willing to change
my position if anyone could give
one peer-reviewed study that shows
increasing minimum wages hurts the middle class

This would be an opposing view. I don't live anywhere near Seattle, but it makes sense.

The current minimum wage in Washington state is $9.32 an hour. That wage goes to $11 an hour on April 1 for businesses with more than 500 employees. For businesses such as restaurants, with fewer than 500 employees, who receive “minimum compensation,” that wage can be made up of a combination of wages, tips, and employer contributions to an employee health care plan, as long as the total of all the compensation equals at least $11 an hour. The full $15 an hour minimum wage does not take effect for restaurants until 2019. http://www.ifyouonlynews.com/po...-minimum-wage/

Seattle now has an
unemployment rate of 4.1% and
ranks 77th out of the 400 largest cities in America.

This user has deactivated their account.
@2125679

Maybe the article in Seattle Magazine is more to your liking - Why Are So Many Seattle Restaurants Closing Lately?
http://www.seattlemag.com/artic...closing-lately

Or how about "Seattle Restaurants Closing Their Doors Ahead Of Minimum Wage Increase"
http://www.nfib.com/article/bne...ncrease-68463/

You've GOT to like what NPR has to say in their article - "Seattle Restaurants Scramble To Pay A Higher Minimum Wage"
http://www.npr.org/sections/the...r-minimum-wage

Doesn't it just feel stupid to try to protect leftisit positions anymore?

@Budwick Maybe the article in Seattle Magazine is more to your liking - **Why Are So Many Seattle Restaurants Closing...

Doesn't it feel "stupid" to
post 6-month-old articles
that came out just as the laws
took effect, and to ignore
the data from this week
that proves them wrong?

@VicZinc Doesn't it feel "stupid" to post 6-month-old articles that came out just as the laws took effect, and to...

Nope - for one thing the restaurant owners operate on razor thin margins and knew instantly that it would hurt destroy their business. The ones that closed then won't be in your recent article - oh wait, you didn't reference any article. Boy, I bet you really feel stupid now.

Now, I did a little work for you and found an article that goes against my point of view. It's about Ivar's Salmon House on Seattle's Lake Union where menu prices are up 21 percent and you don't have to tip - but they're still open. They did have some lay offs, but the ones that made the cut are happy. So, even in this micro view of one restaurant some people lost their jobs and the cost to customers went up substantially. Over the whole spectrum of all restaurants, MANY lost their jobs, MANY businesses closed, and consumers are paying more. That's pretty much word for word what conservatives have said all along.

This comment was deleted.
This user has deactivated their account.
@2126907

I would like to see historical evidence that supports your claim.

This user has deactivated their account.
@2126943

This is patently false
and no economic textbook
would agree with the notion
that minimum wage increases
directly stimulate inflation
it is completely counter
to the very definition of
price increase.

There are many events that can
be directly linked to inflationary pressure
but any link to minimum wage is
convoluted at best

Please provide even one example
of a government mandated wage increase
that was followed by a surge in prices
that was greater than the percent of
increase?
Because I can (and will) provide evidence
that shows the exact opposite

Image in content

Image in content

This user has deactivated their account.
@2126965

All of the data disagrees with you.

Image in content

This user has deactivated their account.
@2126995

Fine
however the real concern
is that so many people
-don't get the economics
-fall for the propaganda administered by the billionaires

  • don't take time to learn the principles of the theory itself
  • repeat what they are told by self-serving bankers, bosses, clergy and billionaires

and the rich keep getting richer
and the poor keep getting poorer
(until there is another revolution)

I respect your right to hold your position
but please understand
that it is not supported by any
historical evidence.

It is only supported
by people who have
something to gain
by keeping wages low.

This user has deactivated their account.
@2127004

End Wall Street?
agreed in the sense that we should
tax earning from derivatives at 90%
that is the only way to stop the
nonproductive speculative investments

Unbacked currency?
I agree
but that is not up to us or even
our government
it is up to the central banks
The only way to reign them in
is by taxing the heck out of them

Taxation?
See above.
the only people that should be taxed
are banks and speculative investors
IMHO

Sorry,
we need to stop thinking
we will ever have a
huge manufacturing base again.
We won't and we need to get over it.

We need to find the next big thing.
I personally think that is
content generation,
but I am probably wrong.

@2126764

You choose not to 'get it'. I cited a story about one up scale restaurant (that many of couldn't afford to go to anyway) that let some employees go and raised menu prices 21% The other stories cite hundreds of other restaurants that closed their doors forever. Everyone there lost their jobs and there are fewer choices for consumers.

By the way, those that closed their doors are the ones that employed the people the increase was supposed to help. The people at the upscale joint that stayed open were already making better money.

That somehow translates into booming economy to you? You're right, you don't get it.

@Budwick You choose not to 'get it'. I cited a story about one up scale restaurant (that many of couldn't afford to go to...

If you choose to ignore
data and rely on "news"
then I am unable to
help you understand
the way the economy works

Please   login   or signup   to leave a comment.