We call on Mayor de Blasio and the City Council to come out in favor of a $15 minimum wage for all workers in New York City and to take steps to immediately raise the wages of all city workers and all workers in firms doing business with the city to a minimum of $15 per hour. We also call on the state legislature to pass the proposed bill S05914 giving the city the power to set its own minimum wage.
Simple economics: a company makes $300 a day. Of that $300 half is eaten by the government and other expenses. So with one full time (8 hour) worker at $8 an hour, that would be $64 of the $150 remaining. The company grows because of less government restrictions, lower taxes and a thriving market. Now the company hires another employee. This employee will receive $8 an hour and will work an 8 hour day. With these two employees the company is spending $128 on employees. Now let's say that with less government interference the company thrives and earns an extra $50 (of which half of goes to other expenses). So now the company has $175 to spend on employees. Now the city raises minimum wage to $15 now the company spends $30 an hour where before they spent $16. And in the first day the company has to pay the employees a total of $240. However the company only has $175 to spend. So they must cut costs elsewhere:
A. lower quality
B. fire one of the employees
C. Cut hours of both employees
D. Move business elsewhere.
So as you can see none of these options are good for the individual who buys the product, the employee who works less or gets fired or for the city altogether when the company takes its business elsewhere.
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