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Mixed reactions accompany South Bay minimum wage increases

Original post made on Jan 3, 2021

Palo Alto, Mountain View and Los Altos are among the south bay cities that saw their minimum wage rates increase in the new year, which has left some business owners in fear as they face lost revenue during the COVID-19 pandemic.

Read the full story here Web Link posted Sunday, January 3, 2021, 9:53 AM

Comments (6)

Posted by OldGuy
a resident of Whisman Station
on Jan 3, 2021 at 12:27 pm

OldGuy is a registered user.

Let's assume the entire wage increase is passed on to the customers.

If I understand the figures correctly, a meal that now costs $30 will cost $30.90 instead.

That is no big deal---I will gladly pay that if it gets the workers closer to a living wage.


Posted by Bill
a resident of Rex Manor
on Jan 4, 2021 at 8:28 am

Bill is a registered user.

Many classes of service workers like domestic help, caregivers, landscapers etc. are now moving into the underground economy. When you factor in taxes, benefits, workers comp insurance and a small profit for a service firm or legitimate business operator the underground worker can make good money and pay no taxes with cash at a rate lower the the business owner. The irony is that the higher you make a minimum wage it actually creates economic incentives to work around the system and expand gig worker markets.


Posted by "show yer math"
a resident of Rex Manor
on Jan 4, 2021 at 8:33 am

"show yer math" is a registered user.

Bill: "the underground worker can make good money"

Care to specify your definition of "good money"?


Posted by Steven Nelson
a resident of Cuesta Park
on Jan 4, 2021 at 3:07 pm

Steven Nelson is a registered user.

Mountain View and Sunnyvale - IMO also showed their alignment with low-wage and minimum-wage worker families by being solidly for (all voting precincts) County School Board incumbent Grace Ma for Reelection. She in many peoples' views (a majority of Voters in her District) has a concern that manifests itself in her excellent support for poor family pre-K education through all of Santa Clara County.

I do not think MV with it's new Council will be in danger of curtailing it's past public policy efforts to "promote the general Welfare".


Posted by Dan Waylonis
a resident of Jackson Park
on Jan 4, 2021 at 3:45 pm

Dan Waylonis is a registered user.

Alternatively, both employers and employees could decide what wage would be amenable to bother parties. But the difference between a low paying job and no job at all is vast.


Posted by Raymond
a resident of Monta Loma
on Jan 4, 2021 at 7:44 pm

Raymond is a registered user.

About half of minimum wage workers are under 25, perhaps still picking up basic skills. About half also reside in non-poor households. The real minimum wage is zero, which the unemployed earn. When the employee fails to generate about double his or her wage, the job vanishes. When the min wage rises, people who are already employed have the best chance or remaining employed. The previously unemployed are more likely to remain unemployed. The "ins" may rise a little, the "outs" stay out.
It is convenient for pro-min wage research that the businesses that fail and the newly unemployed or still unemployed workers are so much harder to find and interview than are the surviving businesses and employees.


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