Impact of minimum wage hike likely a wash, UNL economist says

[Sherman A1]

LINCOLN — A ballot proposal to increase Nebraska’s minimum wage would make a big difference for Katherine Doiel and Gary Tharnish.

For Doiel, Initiative 425 would mean bringing home another $10 to $15 a week from her job as an assistant convenience store manager in Lincoln.

“That goes a long ways. That’s food on the table,” she said.

For Tharnish, it would mean hiring one fewer part-timer and doing more work himself at his longtime Lincoln flower shop. He also would look for ways to cut other expenses.

http://www.omaha.com/money/impact-of-minimum-wage-hike-likely-a-wash-unl-labor/article_be35c784-a86b-59f0-94e0-c5ab0500b7ee.html

[SickOfTheOnePct]

1. I'm skeptical of claims that people can't hire

when minimum wage goes up. Sure, you might have to raise prices, but so will your competitors.

[former9thward]

2. Do you have a product people can't do without?

If not a raise in prices may lead to less customers.

[SickOfTheOnePct]

3. True

At the same time, people will have more money to spend, so you may lose few customers.

[edhopper]

4. Or do what Henry Ford did

Pay your employees enough to afford your product.

No rasise in minimum wage has ever had an adverse effect on the economy.

[Taitertots]

5. If the added revenue is less than the higher minimum wage they wouldn't hire...

But only a tiny fraction of employers are in that situation. The vast majority of low wage workers are generating much more revenue than their wages.

[SickOfTheOnePct]

6. Also, it has to be taken into account that in many cases

the wages of of all hourly workers in a company rise when the minimum wage goes up. If you have employees that have worked there for a year and are making $8/hour (.75 above minimum wage) and minimum wage goes up, you can't expect for them to accept the same pay as new hires. So, their wage goes up as well.

It's good for everyone.