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1
smaulgld
2015 Feb 7, 12:05pm
smaulgld
2015 Feb 7, 12:05pm
The "wage growth" in the non farm payroll all came from the states that raised the minimum wage
3
lostand confused
2015 Feb 7, 1:30pm
lostand confused
2015 Feb 7, 1:30pm
It is a pity with bookstores. When I was working in the city, I loved to frequent Staceys bookstore in market street.
One day a week, they had authors come in and do a reading and just wonderful and read a ton of books during a lunch break-it was very close to my office. Sad when that closed down. There was another book store in one of those alleys close by-forget the name. I guess an old way is slowly going away.
The irony of it all: Liberal city embraces liberal concept and loses valued resource.
President Obama called on Congress to raise the minimum wage by almost 40%, from $7.25 to $10.10 per hour.
America's most liberal city, San Francisco, beat him to the punch. They passed Proposition J, which pressed its slogan:
“San Franciscans need a $15 minimum wage, and they need it now.”
At what cost?
San Franciscans had also enjoyed frequenting Borderland Books for the past 18 years to read and acquire new and used books. It's been the perfect haunt to spend rainy San Francisco afternoons, and it's been enjoyed by many through the years.
In fact, last year was Borderland's most profitable year, even in the face of online competition like Amazon and Audiobooks, and other means of acquiring and reading books. That provides further confirmation just how many San Franciscans have enjoyed the quaint establishment.
However, Proposition J, with its stepped up bumps in wages, delivered the fatal blow.
On top of all the bills and costs of doing business, Proposition J imposed a 14% increase in wages between Christmas and Memorial Day, – a bump to $11.05 on New Years day and another to $12.25 on May 1.
It was a proposition the store simply couldn't endure. Borderland Books informed its customers via its company blog that it will close its doors with the end of March, “Continuing to pay the higher wage without any corresponding increase in income will expend the store's cash assets.”
Proponents of the new wage hikes might suggest that the store just “raise prices.” But in the book business, as the company explained in its blog, publishers set the prices, which are clearly printed on the books. They don't have price elasticity – the wiggle room to work in.
For those business which can raise their prices, San Franciscans will then be faced with higher prices for goods and services in the new economy as the new wages are put in motion.
And who really wins after all that plays out?
Not Borderland Books, which will be sorely missed by those who've enjoyed the place.
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