Jul 20, 2015

Cartoon Perfectly Illustrates What Will Happen If Minimum Wage Is Raised

By on Monday, July 20, 2015

From KSHB:
KANSAS CITY, Mo. – Kansas City will be the only city in Missouri with a minimum wage higher than the state when it’s raised next month.

David Baldwin is the General Manager at Governor Stumpy’s.
He said they employ 32 workers, most of which make more than the minimum wage of $7.65.
Baldwin said the wage increase across the city in August likely won’t be an issue immediately.
“I think the $8.50 may not directly affect us right away,” Baldwin said. “The one that I’m more concerned about further on down the line as we get into the 9s, the 10s, the 11s.”
Kansas City voted to increase the minimum wage to $13 an hour by 2020.
That makes the general manager question how they could afford to continue to operate in the city.
“Love the location, love the neighborhood, love our 80 percent returning customers. They’re awesome, but that being said, you start to weigh out the pros and the cons,” Baldwin explained.
That’s exactly what economists say many small businesses will likely do almost immediately.

“If nothing else changes and we just add a dollar to the minimum wage in August you are likely to see people either reduce employment, not hire any further or relocate,” economist Chris Butler said,
One thing Baldwin doesn’t want to do is raise prices for his customers, but he doesn’t see how that would be possible.
“Whether anyone wants to admit it or not some of that cost is going to have to be reflected in the menu prices and how we organize and do our day to day business,” Baldwin said. …
What do you think of this?


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