Good News: $70,000 Minimum Wage Experiment Appears to Be a Success

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Sam Becker | Money and Career Check Sheet

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Earlier this year, a small Seattle-based payment processing company made headlines when its 31-year-old CEO made a rather jarring change to the company’s pay structure: Gravity Payments would pay all employees, at a bare minimum, $70,000 annually. It was met with a variety of reactions, ranging from those who said CEO Dan Price was establishing himself as a working-class hero, to those who thought he was actively destroying the fabric of society as we know it.

The truth is, Price had read a study that said the optimal level of happiness can be achieved with an income at around $70,000, and decided that he was in a position to make a difference. So he acted on it — by cutting his own salary by 90%.


Now, with several months having passed, we’re beginning to see the fallout. Recently, a slew of articles and media attention has returned to Price’s company. But this time, it hasn’t been quite as positive.

“A Company Copes With Backlash Against the Raise That Roared,” reads a New York Times headline. “CEO counting cost of £45,000 minimum wage decision,” says another, from The Telegraph. Many others are circulating as well, all spelling doom for Gravity Payments, with Price’s minimum wage policy as the chief reason for the company’s issues. As these articles explain, the company did lose business — from clients anticipating fee increases, and others who didn’t want to be associated with what they felt was a political statement.

But lost in a whirlwind of “I told you so” is the fact that Price’s experiment hasn’t really failed. In fact, Gravity Payments is still chugging along. If you were to actually dig into the meat of the doomsayers’ arguments, it turns out that even though the company has lost a handful of clients, it’s signed on even more — so many more that it’s had to go on a hiring spree.

[Read more here]

Originally entitled: “The $70,000 Minimum Wage Experiment Reveals A Dark Truth”

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Robert O’Leary, JD BARA, has had an abiding interest in alternative health products & modalities since the early 1970’s & he has seen how they have made people go from lacking health to vibrant health. He became an attorney, singer-songwriter, martial artist & father along the way and brings that experience to his practice as a BioAcoustic Soundhealth Practitioner, under the tutelage of the award-winning founder of BioAcoustic Biology, Sharry Edwards, whose Institute of BioAcoustic Biology has now been serving clients for 30 years with a non-invasive & safe integrative modality that supports the body’s ability to self-heal using the power of the human voice. Robert brings this modality to serve clients in Greater Springfield (MA), New England & “virtually” the world, with his website, www.romayasoundhealthandbeauty.com. He can also be reached at romayasoundhealthandbeauty@gmail.com

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33 Reader Comments

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  1. 10206745847298639@facebook.com' Clint Ffs Huskey says:

    Still hiring?

  2. 113715278987408@facebook.com' Jeremiah Jennings says:

    Unless it was a different company, last I heard the company was having some serious issues and had to let about half the employees go. If this is the same company, hopefully his business took off and he was able to hire back those that he had to let go.

  3. 1288865647806069@facebook.com' Justin Deutscher says:

    if extreme poverty is the “fabric of society” let it burn along with the flag of the nation.

  4. 1185548631473113@facebook.com' Mike Angelo Rossi says:

    More propaganda BS

  5. 1077772468907797@facebook.com' Diana Rosen says:

    Trump can kiss my Irish-Polish @$$!! Bravo, Dan Price!! ?

  6. 409782735883183@facebook.com' Marsha Creary says:

    $70,000 a year would be great along with retro pay

  7. 10207015695304212@facebook.com' Rita Farrell says:

    The story is far from accurate.

  8. 791853840941521@facebook.com' Est Flex says:

    Whatever the circumstances… if they treat me fair I will work hard. If you treat me like a slave I’ll work like a slave.

  9. 10207950975363060@facebook.com' James P Moon says:

    If the government enforces a 15$ minimum wage I promise you will see more jobs go overseas and more robots in American factories.
    We don’t need to pay stupid people more, we need to teach stupid people how to be more responsible.

  10. 10206542367052806@facebook.com' Patricia Anne Franczyk says:

    we all need 33 dollars an hour, and deserve it

  11. 1091201614223528@facebook.com' Christine M Abrams says:

    Plus 15/hr for 40 hr weeks is only half.

  12. 10206633008601056@facebook.com' Sherry Darling says:

    Everyone does NOT deserve $33 an hr, or even $15 an hr. What is the point of struggling through grad school to become a brain surgeon to earn the same as someone who flips burgers? Pay should be determined more by supply and demand, danger, risk, etc. A teacher, policeman, surgeon, fireman, nurse, etc certainly is worth more per hour than an unskilled untrained laborer. On the other-hand the pay for sports and celebrities is way over sanity and reason.

    • 10207806898833310@facebook.com' Zon Moy says:

      and why wont the brain surgeons get raises over the minimum wage when all the poor people get raises?

    • 10153260663853645@facebook.com' Sheree Collette says:

      Anyone who really thought about it would realize that it makes no sense whatsoever. But young people today are not taught to think, are discouraged from thinking. The Sanders indoctrination only teaches them that rich people are the reason why they aren’t making 100 grand a year to pet dolphins right out of college. Sheer, unabashed, unmitigated idiocy that is becoming more prolific each day. It’s very scary

    • 10207806898833310@facebook.com' Zon Moy says:

      actually our current system of underpaying everybody but the ceo’s makes no sense, in comparison the sanders plan makes far more sense.

    • 132823023741944@facebook.com' Tony Godwin Jr. says:

      Because the current system drains the economy with debt. Plus it should be taught. Not pay money to learn.. that’s absurd. Need more business entrepreneurs.. instead of lazy, no mannered ignorance acting as if the world owes them something.

    • 132823023741944@facebook.com' Tony Godwin Jr. says:

      I have college degrees. A piece of paper does not determine your worth.. so never lower your own self value for somebody whom could care no less about you.

    • 10153682313082577@facebook.com' Amber Buckley-Cobbett says:

      Yeah it kinda does determine who you are. If you took the time and money to go to school. To get those degrees. You have shown to be a reliable hard working and smart person. So just for example: would you be happy that someone that was hired at your place of employment? If they were just hired off the street with no knowledge of the job? With no education? No training in that field. Would you feel the same? Would you feel that they deserved that job? Meanwhile you went to school and studied for how long? What would be the point of going to school to get a better education? Not much would there be? 🙂 just my opinion.

    • 10201242013530468@facebook.com' Barbara Cooper says:

      I feel the same about how much pro athletes make too and many of them aren’t even skilled enough to flip a burger

    • 1100269113317050@facebook.com' John Johnson says:

      Exactly. We have ppl with masters degrees that have never made more than $30k/yr. I have struggled with my lesser degree to make it to $80k and a mgmt position. Why even bother if minimum wage can be bumped up to more than what an MS earns in another state?

    • 183136122036301@facebook.com' Carlo Romero says:

      Sorry, This is wrong. Sherry Darling, Everyone’s time is equally important. I reject the monetising of peoples lives. To me a brain surgeon is no more important than a road sweeper.

  13. 1628463407419572@facebook.com' John Kvarnstrom says:

    Silly, If you don’t give people minimum wage, they get it through government subsidies food stamps etc. Let the company pay them. Not the tax payer, $15, sounds goid

  14. 1710606752496049@facebook.com' Salvador Nonog says:

    Why not??!!
    The CEO get paid multi million dollar a year…
    Just spread sone of that money…. How would that hurt??!!

  15. 1423016744379878@facebook.com' Sheena May says:

    Anna Chau

  16. 501494476719539@facebook.com' Kevin Maroney says:

    You pay peanuts you get monkeys!! You take care of your worker and they will take care of your business. Simple mathematics!

  17. 1055669104473927@facebook.com' Jeffrey Adams says:

    Pay people according to the value they bring to the biz. Russia tried making everyone “equal” how’d that turn out? China? They are now becoming successful, why? They embraced the financial map we have moved away from. They are now more capitalistic than we are, as we become more socialistic

    • 151580428530618@facebook.com' Joseph Lynnie Canada says:

      Capitalism is the reason we are where we are today. So if you like China’s capitalism I would suggest you move there and tell us how you like the capitalism smog pollution there.

  18. 904285279642113@facebook.com' Denette Hadlock says:

    I like the idea of this site, but everyone is so argumentative.

  19. 451995581675023@facebook.com' Charlie Armijo says:

    Maybe one day!

  20. 1519945904997867@facebook.com' Christopher Witehira says:

    The more we make you idiots the more we can spend on all sorts of things leaving the rich buy things at will is only ruining the economy and things become out dated and is wasteful 3million ppl buying a 50 dollar item is better than a thousand rich cumphnts buying the item stupid idiots

  21. 1100269113317050@facebook.com' John Johnson says:

    This kind of constant wage increase does nothing more than further endanger our society and nation. For every wage increase, there is a GREATER cost of living increase. In addition, the costs of purchasing for the govt and companies also increase. — We don’t need wage increases. We need controls for inflation, and penalties for price gouging. That’s called protecting the people from domestic enemies, like those that use economic warfare principles

  22. 10207951003523520@facebook.com' David Copping says:

    Great but what of the people in other countries who MUST suffer in order to contribute to this little piece of classless backslapping. An existence based on 70 K really does equate to the economic misery of thousands of others.
    You want to buy a shirt in most “western” countries made locally. Someone says that the actual cost of time, design, marketing, volume of sales, cost of store and employees, profit and effort of labour will mean that you need to pay $150 dollars. You say no way, in this supposed market driven economy where your worth is valued at 70 K. You can get that shirt for $30 and feel secure in your worth of 70 K s year. So where does the extra $120 go? It goes down the supply chain, it goes to places where a human life is not valued at 50 K or 10 K or even 1 K. It gets down through the chain to where, if you’re lucky, $2 a day is the worth of a human life.
    Make no mistake our 70K existence is only possible on the sweat and the backs of humans that “others”, never you of course, see fit to value at a lot less. A whole lot less!

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