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“Payroll Tsunami”: Small Businesses Layoff Workers To Comply With Minimum Wage Law

Mac Slavo
April 9th, 2019
SHTFplan.com
Comments (42) Read by 3,269 people

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In what has become just one more example of government intervention going the exact opposite of what socialists intend, minimum wage laws are driving a “payroll tsunami.”  Small businesses are being forced to lay off workers in order to comply with a law demanding an increase in wages.

This isn’t all that surprising. Economists, small business owners, and other analysts have said that the net result of higher wages is a loss of jobs. And small businesses, who don’t have the capital or return that large corporations do, are feeling the proverbial pinch. According to Fox News, several mom-and-pop coffee shops and restaurants, are responding by cutting hours, eliminating jobs or closing down entirely because they can’t keep up with rising wages under the law.

Similar effects were seen after employers were dictated to comply with the Obamacare law.  Instead of giving full-time employees health insurance paid for by the company, many workers were simply cut to part-time.

Texas Health Care Costs Skyrocket 60% in 2017: Obamacare At “Unaffordable Levels For Everyone”

Government intervention in the market has proven disastrous in just the past several years, and yet people still believe there isn’t enough totalitarianism. Complying with laws such a minimum wage increase also has the horrible effect of seeing jobs sent overseas – something people hate to hear, but the fact is, no one goes into business to lose money and the United States has become rather effective at driving out businesses as those businesses will always seek more hospitable environments.

This is the ugly side to the highly touted wage hikes, economists say.  The side of the issue socialists disregards in order to pat their own backs because they had “feelings” that they are entitled to more money without actually providing the business with more value.  Economists added that these “bumps in the road” can unleash a “payroll tsunami” for smaller businesses already stretched thin from rising rents and soaring health care costs.

“For some of these businesses, the minimum wage hikes tip the balance between staying in business and going out of business,” Panos Mourdoukoutas, professor of economics at LIU Post in New York, wrote in Forbes.

After winning her House race last year, New York Rep. Alexandria Ocasio-Cortez, D-N.Y., “swung by” to say goodbye to the Coffee Shop in Union Square where she used to work.

She tweeted: “The restaurant I used to work at is closing its doors. I swung by today to say hi one last time, and kid around with friends like old times.”

What the Communist failed to mention to her ignorant followers, is that that popular coffee shop was shuttering its doors permanently because it couldn’t afford the $15 minimum pay raise that Ocasio-Cortez has gone on to strongly support.  There is no need for logic when it comes to socialism or communism, however, and the fact that this woman was somehow elected proves Americans are lacking.

“The times have changed in our industry,” co-owner Charles Milite told The New York Post. “The rents are very high and now the minimum wage is going up and we have a huge number of employees.” It simply costs too much to employee people, and provide jobs anymore.

The American Action Forum calculates that minimum wage hikes will kill 261,000 jobs. Most of the losses concentrated in New York and California, where the tax burden and housing costs are already quickly eliminating the middle class with force. Homelessness is already a problem and it’s going to continue to worsen.

Silicon Valley’s ‘Working Homeless’ Shows How Hard Life Is In “Democrat’s Paradise”

California, Illinois, Massachusetts, New Jersey, and New York all have approved a $15 minimum wage, as has the District of Columbia. Phoenix, Arizona employees are on track for the hourly pay bump on May 1, along with the job losses that will come with it. In all, there are 20 states that have or will move toward a $15 wage.

It seems like no matter how much evidence is out there that increased totalitarianism doesn’t help in the labor market, the masses cannot possibly be bothered to do anything else but beg the government to write laws for their own salvation.  We live in a nation full of bleating sheep.

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Author: Mac Slavo
Views: Read by 3,269 people
Date: April 9th, 2019
Website: www.SHTFplan.com

Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.

42 Comments...

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  1. repr sleepr says:

    Well lets see…If your boss bumps up your pay then you get to fork out more money for taxes. It’s an end around run to hand it to uncle sugar.

  2. odd, my comments dont show up.

    • I’ve posted a comment, no show. reposted- said its duplicate. posted as a reply, no show. modified it and reposted, no show. ANY IDEA WHY THIS IS BEING BLOCKED?

      • Wrangler, did you forget to fill out the name and e-mail? Or did you write something that triggered the system? Certain words are automatically moderated.

        .

        • name email and website (such as they are…) are cached so I dont have to deal with this. Unless we are now triggering on words like “cortez” or “socialist”, theres something wrong.
          I did doublecheck the content, no bad language or mentioning certain ethnic groups etc.

          oh well…

      • Yahooie says:

        I sometimes get a message saying the page is no longer available even though I can still exit and then return to the same page. I try to resubmit my comment but often the same message shows up but not my comment. This has only been happening since the CAPTCHA thingie began showing up on the bottom right of the screen.

        • it went, it just filtered my comment. amazing I can post a logical comment that gets eaten, but the links, pointless music videos, racial crap, sexist nonsense, arguments and insults, off topic garbage, and complete baseless fabrication gets through just fine. Oh well.

  3. Old Guy says:

    Shame on those Greedy business owner’s. They should not lay anyone off. They should pay their (fair Share) until they go Bankrupt.

  4. Sgt. Dale says:

    Of course they are. That is a no brainer!!!
    Sgt.

  5. Anonymous says:

    There’s a figure of speech, about casual labor.

    If you didn’t pay at the level of life support, I would call that a casual employer. Take off your boss hat.

  6. Fritz says:

    Once upon a time, I used to think that liberals’ hearts were in the right place but they were just woefully misguided about the consequences of their actions. Nowadays, I’m convinced that they understand perfectly the consequences of things like these $15 minimum wage laws but pass them as part of a greater effort to collapse every part of our society.

    • once upon a time, you were correct: Liberals were the individualists, the free thinkers, the libertarians. Liberals firmly believed the government should have as little to do with your daily life as possible. At one time liberals were champions of free speech and individual rights. At one time, liberals embodied the root word “Liberty”.

      And then they were co-opted and corrupted. This was right around the late 1950’s. Liberal ideas like free speech were perverted: at UC Berkley for example and used to justify disrupting the business of the school (teaching) by shouting nonsense and obscenity, and making meaningless demands of the faculty. The concept of freedom from tyranny or government control was lost when the left realized it could be used to suppress political opposition and maintain power. The liberals further lost the concept of individual liberty when they realized they could simply continue to subjugate lower classes and minorities by making them dependent upon a central government structure, and therefore dependent upon leaders who championed that structure rather than the individual. Currently, old school “democrats” continue to use and abuse the power structure they helped build to stand on the backs of the individual and keep their wealth and power, all the while whelping two generations of progressively Socialist children. Now the pups are grown and are willing to feed on their old mentors to get and keep that same power.

      They arent woefully misguided, they are corrupted by their own lust for power, so much so they lost any resemblance to what they once were: the Libertarian party.

  7. rellik says:

    “We live in a nation full of bleating sheep.”
    The problem is we have Democrats. We intelligent
    people can’t legally kill them, so I have a suggestion,
    legalize all drugs except Meth and make them as cheap as
    possible to everyone over the age of 18.
    Most all Democrats are so stupid they will
    decimate themselves. Just stand aside and let them be themselves.
    On Minimum wage, I had one minimum wage job in my entire life $1.65 per hour and even then I received a pay raise very soon after being hired. I was a stockboy at a liquor store across the river from Compton CA, yes the place in the movie, and there were driveby shootings even back then. The store owner was a tightwad, very religious J3w that had a deathcamp serial number and star of David crudely Tattoo’ed on his left arm. We had a deal, show up on time, work hard, don’t steal anything, and he’d be fair. I followed his rules, and I ended up earning very good wages for a kid in the 1971-72 time frame. I checked my social security for that time frame, and I was making over $400 per month part time, when I left that job in Jan 1973.

    • Nailbanger says:

      Rellik
      Wait till they pass those laws for reparations,,,
      If you ask me the only ones who should get reparations is the remaining American indians,,,,

      Most blacks were sold into slavery by other blacks

      There were more Irish slaves than blacks,

      More whites were indentured servants than any other race,

      I want reparations from having to deal with these idiot democrats,,,

      And heres a good one, most slabes were owned by democrats, so the democrats should be the ones paying reparations, and the blacks whose ancestors sold other blacks should pay double

      • too bad the “American Indians” would be compelled to pay the Canadian natives, who in turn would be paying the Russian nomads who would in turn be paying the horsemen of Mongolia, who would. etc etc right back to the cradle of civilization.

        Eventually we would be throwing gold tributes to a mass of primordial soup in some arcane ritual of repatriation LOL….

  8. Frank Thoughts says:

    Business is there for two reasons only: it meets a need or serves a market; it is fun and innovative. By mandating the cost of entry to business, you stop its ability to be dynamic and create jobs. Having run businesses around the world I can offer some perspective. Countries that make business hard or raise the bar of entry, are not very dynamic. Think of the UK in the 60s and 70s, or the Soviet Union, or most of Africa.

    The US has been strangling itself for the last couple of decades and that is why so much money and investment just walked over to Asia. Think about it: you can start a business very easily there, your staff are going to be made up of HOT Asian women, Asians are hard-working and strive to be educated, and you can enjoy the hi-tech network of airports across the region. Or, you can start a business in a US city. After you have dodged the most dangerous urban environments in the Western world, you then face having to hire from a workforce of obese women, mouthy knee grows who will give you lip about ‘white privilege’, and be mandated as to how much you pay and how you run your business every step of the way. The infrastructure will be terrible. And then comes along AOC, who will take most of your profits away in tax and tell you “you didn’t build that!!”.

    Why bother??

    • “Why bother”, Frank.

      Because you’re supposed to be an American, not a traitor.

      .

      • repr sleepr says:

        I don’t think it comes down to being a traitor at all. ‘The game is rigged’ like George Carlin once said.

      • Nailbanger says:

        Thats bullshit,
        Its called time to starve the beast,,,
        I had somebody tell me i have an obligation to grow and sell produce within my community,
        Two weeks later i started reading Atlas Shrugged by sheer coincidence,
        Then i got inspected for the Food Safety Modernization Act,
        One month later i called it quits,,,,
        I have no obligation to do shit for anyone but me and my family,
        Dont like that?
        Tough shit

        • rellik says:

          Nail,
          I hear you. I was getting set up to grow white pineapples on three of my five acres.
          I checked up on the FSMA that you had mentioned
          in your past comments, I also got some quotes for insurance for
          a farm, you are right about the costs and general BS, so I said Fugg it.
          Now I just do animals(my pets) and enough garden to cover
          my family needs. We trade any excess for goods from a local store and the local Farmers market. Doing barter avoids the
          FSMA and I keep my home owners insurance which is significantly cheaper than farm insurance. I’ve dropped all my business licenses. I’m checking out as much as I can and still be in America.

          • Nailbanger says:

            😎👍🏻

          • Yahooie says:

            A few years ago, I thought about having a small (one-man operation) vineyard or herb farm in retirement. Then I looked into all the regulations and licensing (local, county, federal) and it just got too crazy.

            When I find my little slice of heaven, I’ll only grow for my own needs and wants. Except cotton, to grow that in Virginia, you must procure a license. No joke. Until then, I’ll make do with my townhouse yard. Going to experiment with square foot gardening this year hoping HOA won’t pester me. Front yard, I’m looking for the most beautiful herbs, maybe do a pinwheel with herbs and flowers.

      • Mike in VA says:

        Oh so if you have to spend your own money, and put in time in the US as a business owner or you are a traitor.

        Not true. The government is the traitors. For setting up a system that takes money from hard working people and gives it to others who did not earn it.

        Honey that was a stupid comment.

        • Nailbanger says:

          The gobermint is ALL traitors, anyone facilitating illegal immigration, benifits or any sort of rights to illegal immigrants is a traitor to not only the American people but to their oath of office and should be removed from office and disqualified from ever voting, or working in government in any position including trash picker,,and should never be able to collect one cent in any sort of compensation or benefit from the government including SS or medicade,,,,
          Get rid of them,
          Just like the fastest way to stop illegal immigration is to kill every last azzhole coming over illegally, get rid of a few hundred, turn a deaf ear to the bleating sheep, and it will be done.
          Harsh but necessary, we are being sold a bag of shit by gov and foreign powers, we are under no obligation to suck it up and go along,,,, none

  9. Name says:

    Meh,take away women’s voting rights and family court rights and you get your country back OR women will destroy it all; which is happening at a good clip now. This is yet another bad decision by feminists. Of course all those feminist libscum will be out of a job first since you know they are the laziest.

  10. Anonymous says:

    Why not $100.00 an hour? Why not $1,000? Better yet, $10,000 an hour.

    That’s why they import voters, don’t ya know?

    .

  11. george says:

    no lack of stupidity among liberals

  12. Anonymous says:

    The business model is to collect subsidies and look busy.

    In theory, then, any demographic can be a quota case, at any quality of life.

    The sweat of your brow can be a legitimate job, so a man can support his family. What makes that so offensive.

  13. aljamo says:

    The existing minimum wage is too low to come close to how much income is required to afford the cost of living. $10 an hour should be the Federal bare minimum in the current price reality. Some raise is necessary. Anything goes capitalistic exploitation has proven to be a failure for freedom and survivability.

    • Mike in VA says:

      Alamo

      Sorry but I disagree. There should be no minimum wage. The market sets the price. No one would work for say 1 dollar an hour because there is no benefit to doing that. Therefore the business owner has to have higher hourly wages to get employees. Its all relative really. If you set a minimum wage then that dictates the cost of whatever the business produces. It also dictates the number of people who the owner can hire to do the job. It further goes through the rest of the market and becomes relative. Example. Minimum wage to make a hamburger is raised from 10 to 15 dollars and hour. Business owner has a few choices as to what to do. He either absorbs the cost and loses whatever profit he was making. He cuts jobs to offset the cost. He says he cannot do business for that amount of labor and closes the doors. He raises the cost of the burgers.. Then everyone pays more. Which I guess means its time to raise the minimum wage again.

      Yes there will always be greed in the world. But the only true way to do business is go back to the founding fathers intentions. Get all possible government regulation out of our lives. That way market forces, honesty, hard work, and great service end up winning in the end.

      • Yahooie says:

        I agree with you, Mike. People used to accept whatever the wage offered knowing that they must improve their skills to be employable. No one ever expected a mother of five to rear her brood on the wages at a burger joint but a kid could make some extra for date night or things for school. (The kid likely got there by the shoe leather express or rode a bike not a new car bought by the parents.)

  14. Kim Lindberg says:

    The social strategy regarding this explained:

  15. Kim M Lindberg says:

    The social strategy regarding this explained:

    https://www.youtube.com/watch?v=ShFZ8QCCiss&t=1685s

    Watch this

  16. Old Guy says:

    Most folks start a business with the intention of making a Profit. Benefits like being you own boss or providing jobs for others rate way behind the primary goal which is making money. and Not making just a living but making as great amount of profit as possible. Ive often seen very successful wealthy folks hire a low shilled low wage employee. They have them do menial work like picking up litter , mowing the grass, cleaning the bathrooms. That frees up the more skilled owners or employees time to do things that actually make money. A sawmill is a prime example. Its a universally accepted fact that if the power unit is turning the blade and the saw isn’t making a cut the sawmill is losing money. So things like live decks, log turners, feed belts ect are employees that reduce the need for employees to do the task. the lumber stackers and other grunt work is performed by the lowest paid workers available. raising the minium wage will only increase automation. or cause a reduction in employees making the remaining workers have to perform a greater amount in the same time period.

  17. Leo R. Lindquist says:

    In a union magazine, there was a sidebar, listing the benefits” of higher minimum wage laws. Ten (?) supposedly “positive” benefits of a higher wage were shown, but when you follow the ripple effects of such government price fixing, it causes a negative net result. It seems rare if a person commenting on the minimum wage law, even mentions the trickle up effect, if you will, since why would anyone else, who is making above the minimum wage amount, want to stay at the same level of compensation. To be “fair,” shouldn’t the rest of the workers in our society also get a bump up? How do you spell I-N-F-L-A-T-I-O-N?

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