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Minimum wage increase causes layoffs? Who knew?
Posted by: McQ on Monday, February 12, 2007

Wow, I never thought something like this could happen! [/sarcasm]
Oh, for the days when Arizona's high school students could roll pizza dough, sweep up sticky floors in theaters or scoop ice cream without worrying about ballot initiatives affecting their earning power.

That's certainly not the case under the state's new minimum-wage law that went into effect last month.

Some Valley employers, especially those in the food industry, say payroll budgets have risen so much that they're cutting hours, instituting hiring freezes and laying off employees.
And of course while the article only points out the effect it has on "teens" (aka 'part-time workers' with a fall-back position - namely their families) it would obviously effect anyone who is at minimum wage full-time as well.
Mark Messner, owner of Pepi's Pizza in south Phoenix, estimates he has employed more than 2,000 high school students since 1990. But he plans to lay off three teenage workers and decrease hours worked by others. Of his 25-person workforce, roughly 75 percent are in high school.

"I've had to go to some of my kids and say, 'Look, my payroll just increased 13 percent,' " he said. " 'Sorry, I don't have any hours for you.' "
This despite the argument which says what Messner describes "really" doesn't happen when the minimum wage is increased.

"So what", you say, they're just teenagers for the most part.

Uh, yeah, but they're still being laid off as you were told would happen ... despite the denial. Also evident is most workers earn well above minimum wage:
An Employment Policies Institute study determined that 30.1 percent of affected workers in Arizona fell between the ages of 16 and 19.

"Workers affected by the minimum-wage increase are less likely to be supporting a family than the typical Arizona worker," it stated. "For example, 30.4 percent of the workers are living with their parent or parents, while only 7.6 percent of all Arizona workers are in this category."

John Weischedel, a senior at the East Valley Institute of Technology in Mesa, knows he is lucky to be making $8 per hour at an auto dealership and learning technical skills. So are most of his friends who make $9 or more per hour while still attending high school.

After the minimum-wage law went into effect, "a couple of my friends got laid off - they worked in fast food," he said. "They're going to wait until they're out of high school to find other jobs."
Hidden within all of this is the point that what happens to these part-time workers who have a fall back position is that percentage noted above who don't "live with their parents" and aren't working part-time are subjected to the same problem. Suddenly their hours are cut or the job goes away.

The law which is supposed to help the "working poor" does precisely the opposite. Like I said, big surprise. They don't call it the law of supply and demand for fun.
 
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Oh, for the days when Arizona’s high school students could roll pizza dough, sweep up sticky floors in theaters or scoop ice cream without worrying about ballot initiatives affecting their earning power.

That’s certainly not the case under the state’s new minimum-wage law that went into effect last month.

Some Valley employers, especially those in the food industry, say payroll budgets have risen so much that they’re cutting hours, instituting hiring freezes and laying off employees.
It’s the evil employers fault I tell ya!

Maybe Hillary should take their profits also...
 
Written By: shark
URL: http://
"They don’t call it the law of supply and demand for fun. "

This "law" business is a bit of a misnomer. The, er, rule cannot be repealed by legislative fiat despite the best of intentions.
 
Written By: D
URL: http://
"So what", you say, they’re just teenagers for the most part.
To which I would reply: Then why did you sell the minimm wage as a way to help the working poor?
 
Written By: Aldo
URL: http://
They meant that now that working poor won’t be employed we have an excuse to find a way to put more people on the Government dole. Which of course is much more helpful than asking them to work.
 
Written By: looker
URL: http://
The law which is supposed to help the "working poor" does precisely the opposite.
I think it does help some working poor. It helps those willing to work under the table. Illegals, etc.

 
Written By: Don
URL: http://
Actually, it does help the working poor. It’s the non-working ones that get screwed over.
 
Written By: Joe R. the Unabrewer
URL: http://unabrewer.com
Actually, it does help the working poor. It’s the non-working ones that get screwed over.
It also increases the ranks of the latter.

 
Written By: Don
URL: http://

 
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