Much Loved San Francisco Book Store Bankrupted By Minimum Wage Hike

Beloved SF Bookstore Becomes Casualty Of Minimum Wage Hike

 

 

 

 

” Independent bookstores have faced tough times for quite a while. In San Francisco, neighborhood businesses have been passionately protected, so it’s hard to believe that an initiative passed by voters to raise the minimum wage is driving a Mission District bookstore out of business.

  San Francisco’s minimum wage is currently $11.05 an hour. By July of 2018, the minimum wage in San Francisco will be $15 an hour. That increase is forcing Borderlands Bookstore to write its last chapter now.

” Everyone who works here does this because they love books, they love stories, and they love being booksellers,” said book store owner Alan Beatts.

  That’s why store owner Beatts found it so tough to post a sign in the front window that the store is closing. “We’re going to be closing by the end of March,” he said.

  Borderlands was turning a small profit, about $3,000 last year. Then voters approved a hike in the minimum wage, a gradual rise from $10.75 up to $15 an hour.

” And by 2018 we’ll be losing about $25,000 a year,” he said.”

 

 

A message to their customers from the owner’s website:

 

 

” Although the major effects of the increasing minimum wage won’t be felt for a while, we’ve chosen to close now instead of waiting for two reasons.  First, the minimum wage has already increased from $10.74 per hour to $11.05 (as of January 1st) and it will increase again on May 1st to $12.25.  Continuing to pay the higher wage without any corresponding increase in income will expend the store’s cash assets.  In essence, the store will have less money (or inventory) six months from now, so closing sooner rather than later makes better business sense.  But more importantly, keeping up our morale and continuing to serve our customers while knowing that we are going to close has been very painful for all of us over the past three months.  Continuing to do so for even longer would be horrible.  Far better to close at a time of our choosing, keep everyone’s sorrow to a minimum, and then get on with our lives.”

 

 

Simple economics eludes the Left . If it costs more there will be less of it .

 

 

 

 

 

 

 

 

 

 

 

 

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Minimum Wage Hike To $7.25 Cost A Million Jobs , Picture A $15 Minimum Wage …

UC Study: Minimum Wage Hike Of 2007-09 Cost 1.4M Jobs

 

 

 

 

” Raising the minimum wage, a stated goal of the Obama administration, likely would cost jobs and hurt low-income workers.

  University of California San Diego economic researchers discovered that the federal minimum wage increase from $5.15 to $7.25 per hour between 2007 and 2009 actually cost the economy 1.4 million jobs, Breitbart News reports. “

 

 

” Even worse, the increase’s negative effect landed squarely on the people it was designed to help — low-paid, unskilled workers, who found themselves blocked out of low-paid or internship positions that would give them a shot at gaining experience and achieving higher-paid jobs, the study notes.

” We find that binding minimum wage increases significantly reduced the likelihood that low-skilled workers rose to what we characterize as lower middle class earnings. This curtailment of transitions into lower middle class earnings began to emerge roughly one year following initial declines in low wage employment. Reductions in upward mobility thus appear to follow reductions in access to opportunities for accumulating work experience,” the report states. “

 

 

 

” While the wage distribution of low-skilled workers shifts as intended, the estimated effects on employment, income, and income growth are negative. “

 

 

   For every government mandate on businesses , industry and technology will create a way to avoid them . If increasing the mandatory minimum wage by two dollars cost a million and a half jobs just imagine the losses from a doubling of the present state-mandated wage for unskilled workers , and machines don’t need healthcare .

   Read more at NewsMax

 

 

 

 

 

 

 

 

 

 

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CBO Admits That Minimum Wage Hike Would Destroy Half Million Jobs

CBO Report: Minimum Wage Hike To Cost 500K Jobs

 

” President Obama’s proposal to raise the minimum wage to $10.10 per hour would cost 500,000 jobs in 2016, according to a report released Tuesday by the nonpartisan Congressional Budget Office.

  The report also found hiking the wage from $7.25 per hour would raise income for about 16.5 million workers by $31 billion, potentially pulling nearly 1 million people out of poverty.

  The White House and economic groups on the left immediately pushed back at the CBO’s conclusions on jobs even as they hailed the findings on poverty, saying its conclusions on jobs ran counter to other research.”

 

Add this to CBO’s earlier report on the job killing effects of Obamacare …

 

 

” Earlier this month, the CBO found that over the next decade, ObamaCare would result in the equivalent of 2.5 million fewer workers. It concluded many workers would chose to remain at home due to ObamaCare’s expansion of health coverage.”

 

   And you see how economically astute this administration really is . Does anyone wonder why we have been stuck in a recession for the entire length of this man’s presidency ?

   As with all things political , the minimum wage hike is about optics and the desire to APPEAR to be doing good regardless of the end result . The media hype and feel good sensation that goes with the passage of a bill is never matched down the road when the true consequences of the legislation become apparent . Read the rest at the Hill.

 

 

 

 

 

 

 

 

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