The Daily Journal attempted to get its arms around a proposal to raise the minimum wage in San Mateo to $15 an hour with a long article filled with quotes from various community members. Here is an excerpt
Brad Goldberg, owner of the downtown restaurant Vault 164, noted the average cost of rental properties in the area can stretch into the thousands of dollars; to the point where even $15 an hour may not allow someone to afford to live here.
“Unfortunately, I think the answer of raising the minimum wage isn’t going to be effective. It’s really going to come down to getting control over what and why it’s so expensive. That seems to be the bigger issue,” Goldberg said.
Goldberg said most of his employees are already paid above minimum wage and he can’t imagine cutting staff in response to an increase.
Yet as Gosula and (Chamber of Commerce CEO Cheryl) Angeles noted, Goldberg said the cost of increasing payrolls will trickle down — it’s just a part of business.
“I do want the minimum wage raised, yeah absolutely. But the question is going to be: where does the money come from to do this?,” Goldberg said. “And that’s a tricky one, because it’s like everything else, when something goes up, whether it’s the cost of meat or your rent, the simplest answer is always just to raise prices.”
I think this is a fabulous idea...for B'game and Belmont. San Mateo should go for it. After the 67% increase, B'game will probably get a nice influx of small businesses and we might even get a few restaurants back from San Mateo - Roti, Moon McShane's and Gao Paong come to mind. SM Deputy Mayor David Lim starts talking about carve outs for certain types of businesses and workers, so the gerrymandering of incomes is apparently on the table, too. I say go for it. You just have to ignore supply and demand as any number of economists...and business owners know:
The belief that increasing the minimum wage is socially beneficial is a delusion. It is short-sighted and ignores evident reality. Workers who retain their jobs are made better off but only at the expense of unskilled, mostly young, workers who either lose their jobs or can’t find a job at the legal minimum. A higher minimum wage attracts new entrants but does not guarantee them a job. What happens on the demand side of the market is not surprising: if the minimum wage exceeds the prevailing market wage (determined by supply and demand), some workers will lose their jobs or have their hours cut.
You always want to live next to the regime (city, state, etc) that is doing the ignoring.
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