Nothing happened yesterday that surprised me. Perhaps Barbara Buono's concessation speech, but that's all. I am, however, saddened that New Jersey voted to increase the minimum wage and have future increases required by the state consitution. While increasing wages sounds nice, where is the money coming from? By the way, when wages go up, so does the FICA contribution from an employer.
One of two things will happen. Businesses that employ minimum wage folks with let someone go OR the business will raise prices. Possibly both. We shall see. And my fellow New Jerseyites - what of the people who work for nursing homes* - school districts - local governments? Where are the funds to be found to meet these new requirements?
Surprise!! Higher taxes!!
*Many nursing homes are privately owned - I know that. But they are still costly and are not known for their princeley pay scales. So if you plan to drop an aging parent off somewhere be prepared for a greater cost and lesser care.
Pay seems to rise quickly whenever there is a labor shortage. You know, more jobs than workers. Right now we have more workers than jobs.
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