General Discussion
In reply to the discussion: So people in the service industry [View all]Sekhmets Daughter
(7,515 posts)I did read your excellent post earlier.
2009 was a grim year for wait staff here in FL. The season is when many of them make enough money to set aside a bit for the barren summer months, when so many Floridians flee the state for cooler climes.
My disagreement with the OP was not about the need to raise wages, but about the one-sided view of the issue and the criticism of those who resent the lack of reasonable tips from our neighbors to the north. There is a point of diminishing returns for everything...I would like to be sure we don't cross that point in our zeal to raise wages. I rather suspect that is why Obama called for a $9.00 minimum wage, tied to inflation. I would love to see it much higher, but right now I think that may be all the system can bear. Particularly as I can just imagine what would happen if Obama, or any other president for that matter, called for capping CEO compensation...or stock dividends.
The average is 420 times, but one that killed me was Ken Lewis, who was CEO of Bank of America when it over-extended itself and needed government assistance. He was earning 1,800 times what the average teller earned at B of A. For leading the bank into disaster.
I have a real problem with people who only see one side of every coin. Another side of the wait staff issue is that not all of their wages are reported and thus taxable. So if they're paid the minimum wage, whatever it may be, all of that will be taxable and their tips will go down, because (a) prices will go up and (b) everyone in the US will behave like Canadians.
There is quite a bit of competition in the restaurant business here. I've seen good restaurants go out of business, but that is usually due to be being under capitalized in the beginning. Like I said earlier, the summer months are pretty grim for all but a few restaurants here. Good food, good service and good ambience usually win out.