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How a rise in minumum wage would effect small business

Discussion in 'Lawn Mowing' started by Soupy, Oct 16, 2004.

  1. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    This may be considered off topic, but since most LCO's are small business. I am wondering what kind of effect you think John Kerry's proposal to raise minimum wage to $7/hr over a 2 year period.


    I know that minimum wage is low, and it is hard for people to raise a family on minimum wage. But I feel that a raise in minimum wage will just raise the cost of living that much more. I for one think that minimum wage jobs are more temporary work then career jobs.

    A lot of LCO's in my area start workers out at $8/hr. I think they are worth $10/hr. But either way, with a raise in minimum wage. Do you think employees will want a slightly higher starting pay because of the hard work? I know some lazy people would rather take a easy job at Wal Mart then to labor in the heat.

    If this is true, do you think the industry can handle more cost. I mean cost are climbing at every angle, but prices are the same as 15 years ago. I'm not sure what to expect. Maybe this is what we need to put the undesirables out of business. Maybe it will effect the low pricers, but they will still pop up long enough to keep prices down.

    Lets hear it, do you think this will effect a lot of LCO's? I'm not wanting any arguing going on in this thread. Civil debating only please.
     
  2. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    Small business is the 'new' american economy and the birthplace of new jobs.
    Anything that makes it harder than it already is for small businesses to survive will be a blow to the economy over the long haul.
     
  3. work_it

    work_it LawnSite Senior Member
    Posts: 976

    Kerry wants to raise the minimum wage and then turn around and raise taxes on individuals and small businesses. IOW, give a little and take a lot. I agree with ENVY, it's only going to hurt small businesses. With his plan we loose twice.
     
  4. craigs lawncare

    craigs lawncare LawnSite Senior Member
    Posts: 310

    Both previous posts hit the nail on the head on this subject.
    Raising minimum wage is nothing more than campaign propaganda.

    The bottom line... raising the minimum wage does nothing but hurt the economy for everyone in the long run... including the person who received the minimum wage increase in the first place.

    Instead of forcing small businesses to shoulder the burden of pay increases for the poor, why not standardize schools... THEN, and ONLY then, put money into education.
    Just throwing money at public education like one political party in particular is proposing, with-out fixing it first does nothing to increase the level of education the youth of our country receives.

    Craig
     
  5. oneandonlyjojo

    oneandonlyjojo LawnSite Member
    from NY
    Posts: 125

    its gonna cause a lot of out sourcing but it shouldnt effect landscaping at all. i dunno who in there right mind would do this hard labor for $8 an hours though
     
  6. Stephen M.

    Stephen M. LawnSite Member
    Posts: 192

    Minimum wage in WA is already at $7.16 per hr and goes up every year. While we pay better than minimum wage, most retail and restaurants struggle. The net effect is that the guys who deserve raises at the top don't get them and the guys at the bottom get all of the extra money. It is having a devasting effect on agriculture--agri-business such as canneries are moving out of Washington. The family farmer struggles to pay wages and gets crap compensation for his crop. Its also bad for export competition.
     
  7. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Posts: 11,062

    You dang right!!!

    Talking down about the No Child Left Behind Act is also nothing more than campaign propaganda!

    The results of this Act in my area are litterally staggering...
    I wish I had cut the results out of the paper a while back. You'd be amazed!

    Honestly though, I don't know what these highly educated youngsters are going to do for a living though. Manual labor jobs are flying out of the country and all those newer and better technical jobs we were supposed to get educated for in exchange for NAFTA and other free trade agreements are getting outsourced.

    These agreements have put this country on a crash course for disaster. I'm sick of hearing about the "Budget Deficit"... let's talk about the "Trade Deficit"!!! The national economy is much like a retail store. But the US is a store that's buying more than it's selling and we can only survive it so long.

    So in my opinion, repealing these free trade agreements is the first step to better wages. After all, we are now in a global wage competetion.
     
  8. Olylawnboy

    Olylawnboy LawnSite Senior Member
    from Oly Wa
    Posts: 312

    Look guys, I just don't get this idea. Say your a solo operator doing great work and making a good living making the magic 60$ per hour and you now want to expand. So you want to hire some help and pay them,well, min wage yet charge your customer that same magic 60 an hour? for the labor of someone else that you pay so much less for. No wonder people bict*h about how much it costs to mow a lawn. To me, min wage has to to be the min it takes to provide a living for the person doing the labor. Don't get me wrong here, as I'm not saying min wage has to support a family, but it should support the person doing the work that's being charged for, otherwise it's not really a min wage....holly shi*t I'm having a flashback to my hippie days! awwww ;) "Power to the people, right on". Guess I'll never be a proper capitalist! Hi mom :waving:
     
  9. sniggly

    sniggly LawnSite Member
    Posts: 190

    Hold up Olylawnboy.

    Let's boil this down to it 's most basic levels.

    Let's say you own a hamburger shop (that's all you sell, no french fries or shakes) and you sell 1 hamburger for 1.00 dollar.

    the buns and meat and condiments cost you .25 cents, the labor to make it costs you .25 cents, and the building, advertising, electricity etc. cost's you .25 cents out of each hamburger.

    That leaves you .25 cents per burger to be taxed in accordance with whatever corporate structure you decide to have, and put the rest in your pocket. Let's say you net .15 cents per burger.

    Now here comes your favorite government...and they tell you, "Listen, you have to pay your employee more money." NOT because your employee took it upon himself or herself to make a better burger, and NOT Because your employee is sooooooo good at what he/she does......it's because the constituency of this governmental body WOULDN'T take responsibility for the well being of their own lives and become better educated, thereby getting higher paying jobs, or take the time to figure out how to make a better mouse trap like you did.

    WHATEVER amount that government body says you have to raise your employees salary is GOING TO COME OUT OF YOUR POCKET!!!!!!!!!!!!!!!!!!!. I am talking about that net .15 cents you read about above. The other costs are fixed Sherlock!

    It is not UP TO YOU to make sure your employee makes enough to make a living! It's not THEIR job to begin with anyway it's YOURS becuase you are the employer!!!!!!!! The job wouldn't be there to begin with if it weren't for you!

    Minimum Wage has nothing to do with making lives better........it's vote buying in it's purest form

    Wake up!
     
  10. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I don't think it's an issue that gets bounced around with my guys...they make 15 and 20 an hour already.
     

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