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Thread: When minimum wage gose up!

  1. #1
    God/dess leilanicandy's Avatar
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    When minimum wage gose up!

    I do not know if anyone posted this question. I could not find it! When minimum wage gose up! How will this affect our income as dancers. Better yet affect our taxes? The goverment is not going to taxes us more because the minimum wage is up?If we do private parties. Will we have to charge more?
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    Banned Melonie's Avatar
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    Default Re: When minimum wage gose up!

    unless you happen to be working as an 'employee' dancer, you shouldn't see any direct effects from an increase in the minimum wage. There may be some indirect effects i.e. union workers who are club customers may get a small pay increase, but on the other hand more expensive US labor costs may result in more US job losses thus fewer club customers.

    For those few dancers who are treated as 'employees' by their club, an increase in the minimum wage will mean a slight increase in their 'base pay' paycheck as well as a slight increase in SSI tax and income tax withheld. For the clubowner 'employer' an increase in the minimum wage will mean higher employer's share SSI tax payments on behalf of employee dancers, as well as higher unemployment insurance premiums due to the state.

    As this amounts to extra money coming out of the clubowner's pocket to pay for higher 'paychecks', taxes and benefit costs, if there isn't an increase in club business levels it's highly probable that the clubowner will have to find another means of increasing his revenue in order to cover these higher costs. As it is illegal to charge 'employee' dancers stage fees etc. the most probable development would be the club deciding to increase the percentage of private dance money it keeps, and reduce the percentage of private dance money the dancers get to keep, in order to cover the additional costs of 'employee' dancer paychecks and unemployment insurance.

    Increasing the minimum wage doesn't 'create money out of nowhere' --- it takes existing money from 'somewhere' and transfers it 'somewhere else'. In the case of union workers whose pay rates will increase in proportion to the minimum wage, the 'somewhere' will be local gov'ts (i.e. taxpayers) and customers who must pay more for products made by companies they work for (if customers will still buy those more expensive US products vs buying imports whose price has not gone up because the minimum wage law doesn't apply to foreign workers). In the case of 'employee' dancers, the transfer effect is likely to be more direct i.e. a higher weekly check for 'base pay' which will actually be 'paid for' by a lower dancer payout for the private dances they performed.

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    God/dess Deogol's Avatar
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    Default Re: When minimum wage gose up!

    Union workers hardly ever work for minimum wage so I doubt they will be effected at all.

    Dancers who are independent contractors are unaffected by minimum wage since they don't receive a wage anyhow.

    If you are a dancer working for/near minimum wage you're an idiot.

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    Banned Melonie's Avatar
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    Default Re: When minimum wage gose up!

    Union workers hardly ever work for minimum wage so I doubt they will be effected at all.
    Not so, I'm afraid. Every work/pay arrangements that operates on the basis of 'job grades', from union contractors to gov't employees, will put forth the argument that
    A. the minimum wage paychecks of 'floor sweepers' have just been increased -
    B. that their own higher skills compared to 'floor sweepers' are now being devalued in comparison, thus -
    C. they also now deserve a pay increase in order to maintain the 'fairness' of the 'graded jobs' pay system

    the 'tin foil hat' crowd would point out that the above phenomenon has occurred without fail whenever minimum wage levels have been increased in the past, that strong support from union members and civil servants was a major contributor to democratic election victories earlier this month, and that the 'spoils' of that victory will translate into across the board pay increases for union members and civil servants regardless of whether their job grade currently earns minimum wage or $20 an hour.

    Dancers who are independent contractors are unaffected by minimum wage since they don't receive a wage anyhow.
    True in the sense of 'direct' and immediate effect. Potentially untrue in the sense of 'indirect' effect on future earnings potential. In theory, an increase in minimum wage with coincident increases in wages for higher skilled workers will increase state and local taxes as well as increasing the price charged for US goods and services in order to pay for the increased cost of those higher minimum wage and 'graded jobs' paychecks.

    To the extent that 'strip clubs' are a luxury expense, future 'strip club' customers when faced with tax increases and paying higher prices for more 'necessary' items like food (where minimum wage workers are plentiful) are likely to cut back on their 'strip club' spending to compensate.

    There is also a reasonably well proven theory (the Ricardo theory) that states that an increase in minimum wage (with or without a corresponding increase in wages of higher skilled workers) provides a strong incentive for employers to replace human workers with increased automation and thus increase unemployment. The present day 'global' corrolary to the Ricardo theory states that employers will substitute more foreign workers for US workers when the labor cost of employing US workers increases while the labor cost of foreign workers does not.

    It can be reasonably well theorized that a further increase in US labor costs as a result of an increased minimum wage (with a corresponding increase in wages of higher skilled union workers) will in fact result in increased unemployment in the US, as employers decide to move more operations offshore rather than pay even higher US labor costs. Besides some number of higher skill higher pay Americans who wind up unemployed as a result of their former employer's offshore move, this also leads to even higher future tax rates (to fund unemployment checks and social welfare benefits for those unemployed workers) being imposed on Americans who ARE still employed - both of which are likely to translate into fewer customers / lower levels of average spending by 'strip club' customers.

    Given the above, IMHO an increase in the minimum wage is good for dancers who work in top shelf 'show clubs' where the customer base is comprised of corporate execs, bankers, accountants, stockbrokers, attorneys etc. The reason of course is that THESE are the people who will benefit as an increase in minimum wage / US labor costs prompting an increase in offshore relocation / plant construction, outsourcing of services and component parts etc. thus resulting in higher corporate profits, higher stock prices, more LBO's and loans for overseas capital spending on plant & equipment, bigger bonuses etc. On the other hand, an increase in the minimum wage will likely hurt dancers working in 'average' clubs that depend on 'working class' customers and local merchants for their customer base, as it is these sort of club customers who will be adversely affected by increased state and local taxes, relocation of decent paying US manufacturing jobs overseas creating pockets of high local unemployment, squeezed profit margins for local merchants who have minimum wage workers to pay, higher prices etc.
    ~
    Last edited by Melonie; 11-27-2006 at 07:02 AM.

  5. #5
    God/dess leilanicandy's Avatar
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    Default Re: When minimum wage gose up!

    ^^^ Mel that was exactly what I was thinking! I did not think business might not boom in certain places because minimum wage is pleantyful. WHich may cause a lot dancer to flock to certain type of clubs. (like a clubs where there customer base is of a higher class). With an increase in minimum wage, I thought the goverment might increase taxes. Just to sqeeze out more money from people. Which than can affect the dancer. Because they might have to pay more taxes. I think this increase minimum wage is a bunch of crap. maybe they need to lower the prices on a lot things.
    If you want the present to be differant from the past, study the past.
    Baruch Spindza

    It is what it is, not what you want it to become, that's important -- at least for now. Today, remember that things worth having are worth waiting for!
    The Stars

    Minds are like parachutes: They only function when open.
    Thomas Dewar

    Dont throw away the old bucket until you know whether the new one holds water.
    Swedish Proverb

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    Default Re: When minimum wage gose up!

    ^^^ well, let's face 'strip club' facts here ... guys who earn minimum wage, or anywhere near the minimum wage end of the pay scale, do not become strip club customers .... or if they do, they're exactly the type of strip club customers that dancer's don't want to have to deal with i.e. nursing 2 drinks and begrudgingly tipping dollars while buying zero private dances. Guys like this getting $40 a week pay raises is not going to materially affect their 'strip club' spending habits.

    Essentially, if the minimum wage goes up, and if (as has happened every other time that the minimum wage has been increased) unionized construction workers, unionized teachers and gov't employees, unionized maintenance workers etc. also get an incremental pay raise based on maintaining 'job grade' separations, then every local gov't is going to have to raise additional tax revenue in order to pay for construction projects, teacher and gov't employee paychecks, maintenance contracts on gov't buildings/facilities etc. which have suddenly become more expensive to the gov't due to rising labor costs.

    Since people who earn less than $50,000 per year actually pay comparatively little in taxes, or put another way 66% of all income tax revenue is paid by the top 10% of wage earners (basically those earning more than $95,000 per year), any such tax increases will have comparatively little effect on people who are not 'strip club' customers (i.e. the minimum wage workers who will get a pay raise from $25,000 to $27,000 per year), but will have a disproportionately large effect on people who ARE 'strip club' customers (i.e. people earning $95,000+ per year who got no pay raise but who got saddled with a significant tax increase - unless of course their employer decides to outsource/relocate and render them unemployed, in which case the can no longer afford to be 'strip club' customers anyhow !).

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