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. 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. 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. Nike Darwin Goedkoop This will not only affect the foodservice industry, it will have its prints on just about everyone.
Well, get ready. Nike AIR Max 2017 Dames It is already coming to pass. 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. restaurant owners, farmers brace for wage hike
A debate over proposals to raise the minimum wage in New York 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. 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. Crain’s New York Business/The Insider Blog
You really have not seen anything yet, I feel this is just the beginning. 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. 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. 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. Nike Air Max Lunar 90 Dame You may only be tagged if you have a large number of company-owned units.