Tuesday, February 10, 2015

Raising minimum wage killed indie book store

Borderland bookstore in San Francisco announced it will out of business in March after eighteen years. They have to fight the giants Amazon and e-books from them and from Barnes and Noble. And the costs of operating in the big city - high rents, etc. But they say the final nail was the high and increasing minimum wage. 

The minimum wage was $10.74 last year; it went to $11.05 on January and will go to $12.25 on May 1. And it will continue to rise until it reaches $15.00. That’s 14% in less than five months! Balance your budget with one of your largest expenses going up 14%! In the book selling business you can’t raise your prices like that; it would mean death. The store’s blog explains every alternative they explored of reducing expenses or raising revenues. Borderlands

Daily Caller

And the problem is widespread. A study by American Action Forum shows that cities and states with higher minimum wages have higher unemployment and it’s much worse for teenagers. Study

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