Editor's notes: 50 employees would have cost the owner an additional $70,000 to $100,000 for the first year . . . . no one seems to know exactly how much. And next year, you can count on an increase of 12% to 16% if not more . . . . . much faster than the rise in hourly; much fast than the so-called inflation rate.
We are going "robot," folks, because no one in Central Planning - and I mean no one - knows what the Hey she is doing when it comes to job creation and long term job security. By the time my kids are my age, we will be a full-blown welfare society, except (maybe) for the lucky ones living in Montana, Wyoming, Idaho and the Dakotas or anywhere lost in the hills.
Government's demand to pay a minimum wage coupled with the cost of ObamaCare, will see the end of the job market, at least for the low income working man. Rising minimum wages have cost this society 10 million jobs since 1974 from 16 million in '74, to 6 million on minimum wage, today. Them's the facts, boys and girls, and if the Progressive We do need to balance no stinking budget Democrats, gain a strangle hold on national governance, America will look exactly like Greece and/or Venezuela.
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Daily Signal: If you ask Tom Loventhal, a deli is no more than a place to provide customers with comfort food.
Whether it’s breakfast—served all day—soup or a sandwich, Loventhal’s
motto has always been that at his Nashville, Tenn.,-based deli, “anyone
is welcome here from ages 0 to 99, because you’ll find something on the
menu.”
And for nearly two decades, Loventhal has stayed true to his motto at
his restaurant, Noshville Authentic New York Delicatessen (“nosh”
meaning to eat), where he’s kept more than half of the same employees on
the payroll for at least 10 years and one-quarter of his workers for
nearly 15 years.
Loventhal of course has his regulars, who he says come into the deli
at least four times a week and take their usual seats at the counter,
and he’s seen three generations of customers—the parents had kids, and
now those same kids are having kids.
“The loyalty, people just come back,” he told The Daily Signal. “We
have good service and consistent good food. It’s just a fun place to
come in and eat.”
But come Dec. 27, the midtown Nashville location of the restaurant,
one of two Loventhal owns, will be closing its doors in part because of
Obamacare, he said.
“Having more than 50 full-time employees means you have to comply
with the Affordable Care Act, and it was an unknown risk of how much it
was going to cost,” he told The Daily Signal. “But it was going to be
significant, and take a lot of time and labor to take care of the
transition and the reporting and the forms.”
Loventhal originally planned to shutter the location within the first
few months of 2016 after a developer purchased the building where
Noshville’s has sat for the last 19 years.
But when Loventhal learned he would be faced with the added expense
of providing his more than 50 employees with health insurance come Jan.
1—he estimated it would cost between $70,000 and $100,000
annually—Loventhal decided to close Noshville’s doors before the
provision of Obamacare overseeing businesses, the employer mandate, goes
fully into effect.
Canada's middle class has just surpassed the US in after tax income. Why, how? By doing everything the GOP is against: higher min wage, more unions, higher taxes on the rich, free health care and strong bank regulation. That's how.
ReplyDeleteTrickle down... what a crock.
Funny, but you have to go to Canada for "proof" that Obama's scheme's actually work, because the same agenda are not working here, in the US.
DeleteI am not going to take time to study Canadian domestic policy as to wages and financial. It's GDP (2013) was around 1.5 trillion dollars compared to the US at 16.5 trillion. And, in that difference there is a world of reasonable contrasts.
Understand that a rising minimum wage, in the United States, has eliminated nearly 10 million minimum jobs for the entry level and low level wage earner. `1974, the wage was $2.75 per hour and 15.6 million folks earned that wage. Today, at 7.25 dollars per hour, we have 6 million folks on minimum wage. Double that wage to $15 per hour, and you may less than 1 million folks working at that level of pay.
Because our workforce is educationally unqualified to earn a higher wage, the jobless working poor have had no choice but to enroll in various welfare programs. They sure as the world are not "going union." Our banking regulations have only increased the size of banking institutions while more than 300 local and smaller community banks have gone out of business during these Obama years . . . . . so how is the working poor benefited in these statistics ? Answer: they are not. And free health care? Hey, the working poor was already getting free health care., and, still, today, 5 years after the law was signed, there are 40 million Americans unisured. Our ER centers remain as busy as before ObamaCare. The program has solved absolutely nothing.
The overriding problem is "continuing education." The immigrant class has a very high percentage of folks without the kind of education that equips them for higher paying jobs.
Referring to the minimum wage as a wage designed to support a family confuses the issue. Families need a living wage, not a minimum wage. With that said, working at McDonald's or the local gas station isn't a career. These are jobs designed to help entry-level workers join the workforce, not to support the financial needs of a family.
On the core issue of minimum wage itself, political wrangling is unlikely to result in a real solution. A more practical solution is to join the workforce at the low end of the wage scale, build your skills, get an education and move up the ladder to a better paying job just as members of the workforce have done for generations.