27 June 2015
Category:
Franchising
Comments: Comments Off on Minimum Wage Issues With Maximum Effects

Minimum Wage Issues With Maximum Effects

By Don Boroian, Francorp Founder, Chairman, and CEO

Recently I wrote an article that appeared in this past August’s edition of Franchising USA Magazine voicing my concerns about the mandating of minimum wages to $15.00 and the impact it would have on the economy. College Jerseys bestellen schoenen nike air max 2016 goedkoop Nike Free 3.0 V4 Goedkoop Nike Air Max Heren (link to article)

It is evident that by simply increasing wages without an increase of productivity will force companies to increase prices across the board and wipe out the gains in income that the minimum wage employees would receive.

Additionally, I pointed out that in order to make higher wages it is best to strive to move up in the company or on to a better job, employees who do well get promoted to better jobs and better pay. Adidas Goedkoop nike requin pas cher An example of this is that 50 percent of McDonald’s managers started out as hourly employees.

I further predicted that this movement, championed by politicians who will promise anything to get elected, will result in the largest inflationary spiral since the late 70’s as employers will simply increase prices to offset the increases in costs. Compra Mochilas Kanken Fjallraven España Asics Gel Lyte 3 new balance femme blanche 996 Nike Darwin Goedkoop This will not only affect the foodservice industry, it will have its prints on just about everyone.

Well, get ready. Adidas NMD Heren mochilas kanken cheap bns items new balance 996 femme soldes Nike AIR Max 2017 Dames It is already coming to pass. fjällräven kånken No.2 chaussures nike tn requin Nike Scarpe Italia Air Max 2016 Heren Goedkoop Below is a recent NRA Restaurant SmartBrief of an article that ran in the March 23, 2015 issue of Crain’s New York Business:

N.Y. nike air max 1 homme Mochilas Kanken Baratas bns items restaurant owners, farmers brace for wage hike
A debate over proposals to raise the minimum wage in New York generic levitra online to anywhere from $10.50 to $15 per hour is raising concerns in some parts of the state and industries including restaurants and the farms that supply them. Adidas Shop van Nederland cheap bns gold Nike Air Max 90 Bloemen Dame “Our entire payroll creeps up when the minimum wage goes up and has a profound impact on our bottom line,” said upstate vegetable and fruit farmer Brian Reeves. nike air max 2017 goedkoop Adidas Pas Chere Crain’s New York Business/The Insider Blog

You really have not seen anything yet, I feel this is just the beginning. bns gold Nike Air Max 2014 Dame Farmers, suppliers, service suppliers, and anyone who employs minimum wage people will be increasing their hourly rates by as much as 100 percent. Chaussures Under Armour nike air max 90 goedkoop bns gold Nike Air Huarache Heren This will cause an increase of their prices to their customers and so on and so on.

We have been through this before. Asics Pas Cher Nike Air Max 90 Honeycomb Heren Nike Air Max 1 Dames You can sell the house you bought for $100,000 now for $200,000, but it will cost you $300,000 to buy the next one.

Fasten your seat belts, we are in for a rough ride!

Hold on a second, a saving grace in all of this that when you franchise each franchisee falls under the Federal sales levels of companies that are required to comply with the minimum wage. Fjällräven Kånken Väska buy bns gold goedkoop nike air max 2017 Nike Air Max Lunar 90 Dame You may only be tagged if you have a large number of company-owned units.

Comments are closed.