It seems that some politicians think that the $15 Minimum Wage is the magic bullet. Not so fast, as when Governor Murphy, State Senate President Stephen Sweeney and Assemblyman/Speaker Craig Coughlin made the announcement at the Ocean Bay Diner, Rte. 35 in Sayreville.

The owner of that establishment was upset and told them how this was going to affect his business and will cause him to raise prices and even push him out of business. 

The politicians had to explain to the owner that it would be phased in over a 5-year period. After explaining that to the owner, the owner was more receptive.

So, here’s the scenario: if the minimum wage is $15 in 5 years, and the restaurant employs people to just bus the tables, that is what they will be getting. So, what would you have to pay the cashier who must make sure that at the end of the day, the money in the register matches the receipts?

You have to look at the different layers of people you have to hire to run their business. You can’t realistically pay them all the same. Your bottom pay is $15 up. Then you may be forced to reduce the hours of your  employees or maybe the hours of your business. 

What you need to do is look at are the States that have a $15 minimum wage. Many businesses in these states are replacing human employees with automated machines.

Automation is nothing new. We are used to vending machines to get snacks and drinks. Many years ago, up until 1991, there was a very popular company called: “Horn and Hardart”. At these locations, food (hot/cold pastries and drinks) was displayed in vending machines, and you would just drop in your money and take out the selection that you wanted and take it to your table yourself. Horn and Hardart was very well known in New York City. The last location was phased out in 1991.

Many lower paying jobs that were usually held by teenagers after school or during the summer for extra money such as paper delivery, fast-food establishments, etc. are now being held by adults, many times Seniors who need the extra money to pay their bills. 

The most important part of any job is to have great benefits, especially health. It’s not surprising that a large chunk of your money can be wiped out in an instant if a major medical crisis occurs. 

I remember when one of my relatives worked for a worldwide company that had an office in Edison which is now closed but had great benefits for their employees. This relative told me something that I would never forget. When they would go to the dentist, the dentist would always say to them: “I could always tell which patients had good benefits. They would ask me, “How much is this procedure going to hurt?” Other patients that had lousy benefits would simply ask, “How much is this going to cost?” before they decided whether or not to have the procedure.” My relative was fortunate that when the company they were working for went out of business, that they paid for two years of schooling of any person who wanted to go into another field of interest. 

When 2024 rolls around, will $15 be a sustainable living wage? We have to adjust for inflation and cost of living, and technology. It may have to be a case where a person may have to relocate to a State that is looking for workers where they pay a higher salary. 

So, the bottom line is, “What will the cost of living be in 2024?” How will automation play a factor? What benefits that the company gives now will be eliminated? It’s a catch-22. The best thing you can do is to get into a profession that has a promising future. C.M.