Minimum Wage STX

I highly doubt the increase which is being very slowly phased in over 3 years will
"slaughter" any small business in St Croix or in the USVI as a whole. The increase is long overdue and reflects similar increases throughout the US:

http://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx

As far as electricity rates are concerned these have significantly dropped already with further reductions coming in the future.

As the owner of a well established small business, I can say with complete certainty that the increase in minimum wage, with the gradual implementation they are proposing, will have no negative effect whatsoever.

The sky is not falling.

This increase doesn't even get us back to where we were nationally in the late '60's (10.80ish in today's dollars). It should have happened earlier. If business models can't handle adjusting for inflation to pay a living wage, they need to be rethought or scrapped. At least it's incremental.

http://fortune.com/2015/10/27/company-that-promised-70000-minimum-wage-reaps-rewards/

Really "slaughtering" his business

This big push for an increase in the minimum wage is happening at a time when automation is poised to replace more workers. Several major fast food chains are looking to significantly reduce their staff through automation. In some estimates, between 1/3 to 1/2 of all minimum wage fast food employees will be eliminated by 2025.

This is important because the food industry is by far the largest employer of minimum wage employees.

Talk about unintended consequences. I know at my bank, I always opt for the ATM rather than talk to a human teller. 99% of my banking is handled either online or through an ATM. What industries are next to automate.

Will progressives push to make automation illegal? Will they tax robots to support increased unemployment?

Wendy's Explains What Really Happens With A Minimum Wage Rise: Job Losses
http://www.forbes.com/sites/timworstall/2015/08/11/wendys-explains-what-really-happens-with-a-minimum-wage-rise-job-losses/

Minimum-wage offensive could speed arrival of robot-powered restaurants
http://www.washingtonpost.com/business/capitalbusiness/minimum-wage-offensive-could-speed-arrival-of-robot-powered-restaurants/2015/08/16/35f284ea-3f6f-11e5-8d45-d815146f81fa_story.html

Rising minimum wages make automation more cost-effective
http://www.brookings.edu/blogs/techtank/posts/2015/09/30-minimum-wage-and-automation

Restaurant Robots: Minimum Wage Increase In Washington, D.C. Could Lead To Automated Workers
http://www.hngn.com/articles/119945/20150817/restaurant-robots-minimum-wage-increase-washington-d-c-lead-automated.htm

I, for one, look forward to dealing with Service Bots at fast food restaurants. especially here in the VI. Bring it on.

But seriously, some people just aren't capable of producing at a level that deserves more than $10 bucks an hour and deserve to be replaced by robots.

No matter how little or how much they pay you, you are an expense and they are trying to figure out how to reduce expenses, especially if they have shareholders.

New jobs are created all the time. Nobody was making money on YouTube, eBay, etc 20 years ago.

The "automation" scare tactic has been used since Moses was a baby. Trains, planes, autos, vending machines, self serve gas and retail checkouts, automated tolls . . . . We've always adapted to change in the past, and will continue to do so in the future. As productivity goes up, economic growth tends to follow.

The min. wage is barely a living wage.
Too bad it'll take 3 years to implement.
How'd you like to try to live on that, paying bills, feeding yourself, sending kids to school?

No one was ever expected to live on minimum wage. It is an entry level wage. You are expected to learn new skills and move up. Your employer has no control over your lifestyle or your wage requirements. He only knows what he thinks the job is worth.

When I was working a minimum wage job, I had three roommates and we shared a two bedroom apartment. But then, we had no expectations of raising a family on minimum wage.

Unfortunately, it is almost impossible to move up from a minimum wage if you work for private sector in VI. You can work there years and never get a raise or promotion.

Many of the people here working minimum wage are trying to send themselves through school. Some are in relationships with someone who earns more than they do. Not everybody is trying to raise a family, but those that are rely on government assistance to supplement.

Minimum wage means "we think so little of you we would pay you less, unfortunately we can't because the government wants to kill job creators".

Minimum wage means, "we need someone to do a job which requires almost no training or skills. You are easy to replace and we don't care whether you stay with us or not. It is a job which gives us a chance to see how you do and if you are worth keeping we will give you a raise so that you will stay around. If we don't give you a raise within a timeframe that you are happy with, then feel free to leave."

What a lovely view of human worth.

It has nothing to do with human worth. An employer is not a charity. They are in business to produce a product or provide a service to their customers and to produce a profit for the owner or shareholders of the business.

Labor is a commodity just like any other resource. An employer doesn't seek to pay what the employee thinks is a "fair" wage, they seek to pay a "competitive" wage in order to attract potential employees from the labor pool.

Again, what is a fair wage? An employer has no control over what your wage requirements are. He is not even allowed to discuss your family/domestic situation with a potential employee during an interview. Should an employer be allowed to run an ad that states:
"Minimum wage employee wanted. We desire applicants which have no family to support as this job does not pay enough to support more than the employee alone. You will probably not be able to buy a new car or rent an apartment without roommates, however we will pay you on time and expect you to show up on time. Whether or not you get a raise will depend on your performance and the needs of the employer, feel free to look elsewhere if this job does not meet your requirements".

For a business here, the costs are significant. For example, having 10 minimum wage employees full time costs $150,800 per year. If the minimum wage increases to $10.50, the cost jumps to $218,400 - an increase of $67,600 more per year that an employer has to come up with without any increased production. It's a lot.

At a certain point, it becomes cheaper to hire 5 experienced employees at $14.50/hr (total $158,800/yr) and forgo entry level positions altogether, leaving minimum wage earners with even less opportunities.

I don't know which is better but in my industry, a wage hike will cost some people jobs because the math is stacked against them.

Except it doesn't cost jobs in most studies. It increases productivity as well.

Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.

Abraham Lincoln

http://www.cepr.net/blogs/cepr-blog/2014-job-creation-in-states-that-raised-the-minimum-wage

I suspect that those who advocate an increased minimum wage are not employers. And most likely are closet socialists seeking a paradigm shift in the US.

With an increased minimum wage and mandatory health insurance through ACA, employers are loosing control of their businesses to the government.

Private property under Socialism:
"Two kinds of property: Personal property, such as houses, clothing, etc. owned by the individual. Public property includes factories, and means of production owned by the State but with worker control."

Do you really think that if increased wages really led to higher profits then every business owner wouldn't jump on the band wagon?

Nothing has ever stopped an employer from paying their employees higher wages, if it actually led to more profits then there would be no need for a minimum wage. Minimum wage is an attempt by the government to take control of private businesses and force socialism on them.

What advocates of minimum wage would really like is for the employer to take less of the profit for themselves and distribute more to the workers. They would probably like to place a cap on maximum profit allowed for an employer. (after all, the means of production should belong to the state). In reality what usually happens is that the cost of products and services go up and customers are forced to pay more. Unfortunately for the socialists out there, most employers are capitalists.

I'm reminded of a Bugs Bunny/Daffy Duck cartoon here...

It's mine mine all mine

You can be a capitalist and not a greedy SOB

http://youtu.be/PjB9jlDvUNM

I'm reminded of a Bugs Bunny/Daffy Duck cartoon here...

It's mine mine all mine

You can be a capitalist and not a greedy SOB

http://youtu.be/PjB9jlDvUNM

As I said, you are probably not an employer. All good socialists think that profits should be regulated by the government.

As far as I am concerned, an employer should be able to offer any wage he/she wishes. If an employee doesn't think that is a "fair" wage then they shouldn't take the job. If the employer isn't successful in hiring any employees then they will be forced to raise their offer.

If an employee isn't able to find anyone willing to pay them what they think that they are worth then maybe their skillset is lacking and their expectations are unreasonable. Maybe they should start their own business and pay themselves, or run for public office

No one is forced to work for an employer that they think is paying too little in wages. And an employer should not be forced by the government to pay more than they think the job position is worth.

do you have a pinup of Ayn Rand on your wall by chance? 😉

No one was ever expected to live on minimum wage. It is an entry level wage. You are expected to learn new skills and move up. Your employer has no control over your lifestyle or your wage requirements. He only knows what he thinks the job is worth.

When I was working a minimum wage job, I had three roommates and we shared a two bedroom apartment. But then, we had no expectations of raising a family on minimum wage.

The Federal minimum wage law in the FLSA was indeed created to provide a living wage. The intended purpose is in the bill's language. The "entry level wage" mythical argument is an excuse cooked up to make the sanctimonious feel better. It has no basis in our legal history.

When I was working a minimum age job (way back in the early 70's), I had roommates too, and certainly hoped I'd make more money in the future. But I was also covering college tuition and living expenses. Of course, at the time, I was making the equivalent of over $9.50 an hour in today's dollars. It had just gone up 40 cents. Businesses didn't fold because of it, and life went on.

No one was ever expected to live on minimum wage. It is an entry level wage. You are expected to learn new skills and move up. Your employer has no control over your lifestyle or your wage requirements. He only knows what he thinks the job is worth.

When I was working a minimum wage job, I had three roommates and we shared a two bedroom apartment. But then, we had no expectations of raising a family on minimum wage.

The Federal minimum wage law in the FLSA was indeed created to provide a living wage. The intended purpose is in the bill's language. The "entry level wage" mythical argument is an excuse cooked up to make the sanctimonious feel better. It has no basis in our legal history.

When I was working a minimum age job (way back in the early 70's), I had roommates too, and certainly hoped I'd make more money in the future. But I was also covering college tuition and living expenses. Of course, at the time, I was making the equivalent of over $9.50 an hour in today's dollars. It had just gone up 40 cents. Businesses didn't fold because of it, and life went on.

Ssshhh. Don't let facts muddle up their Galt's Gultch utopia

Merchants are most certainly going to increase the retail price of goods. Access to capital for small businesses in the VI is generally non-existent, so new or under capitalized businesses will suffer major consequences.