Posted on 05/15/2016 8:59:32 PM PDT by Jim W N
Overregulation: Carl’s Jr. and Hardee’s CEO Andy Puzder has people all in a huff over his idea to automate restaurants. But why be upset with Puzder? This is an inevitable consequence of massive minimum wage hikes by the government.
“With government driving up the cost of labor, it’s driving down the number of jobs,” said Puzder. “You’re going to see automation not just in airports and grocery stores, but in restaurants.”
He’s right. That’s why whenever the minimum wage rises above the market-set prevailing wage, jobs are destroyed. Who would pay someone $15 an hour to do a job that’s worth less than that? No one.
This isn’t rocket science or even advanced economics. It’s plain common sense — something that populist demagogues on the left seem to be missing entirely.
Consider:
IBD’s Jed Graham surveyed six big U.S. cities that hiked the minimum wage in 2015 and found they took a serious jobs hit. “Wherever cities implemented big minimum-wage hikes to $10 an hour or more last year, the latest data through December show that job creation downshifted to the slowest pace in at least five years,” Graham wrote.
American Enterprise Institute looked at Seattle’s recent minimum wage hike. After it began phasing in a series of hikes in 2014, Seattle lost 10,000 jobs between September and November, and the unemployment rate jumped a full percentage point. As AEI economist Mark Perry notes, Seattle’s minimum wage hike from $9.32 to $15 an hour amounts to a $11,360 tax on every minimum wage job.
A 2014 Congressional Budget Office study estimated that raising the federal minimum wage from $7.25 an hour to just $10.10 an hour would kill half a million jobs. Worst of all, those who suffer most are the young, minorities and those with little education or training.
(Excerpt) Read more at investors.com ...
If the government forces people to be paid more than their labor is worth, then those jobs are doomed. It’s inexorable.
Don’t blame the CEO for protecting his shareholders. He doesn’t owe anyone a job.
Ordering Fast Food Japanese Style! - HD
https://youtu.be/PldaAuGVbQ8
Fast food places are generally paying more than minimum wage.
That said, hard is it to understand...the person they hire at $9 in NOT the person they keep at $15 minimum.
They’re getting laid off.
Congratulations!
I love Trump, but don’t care for his tariffs. He said once that people that did things right (worked hard and saved their money) were being hurt because of low interest rates. He gets it, but when you purposefully make items cost more you’re hurting people as well. — Pretty sure the tariffs is why some of the union people want him in office, one thing I liked about Walker was he worked hard to break the union stranglehold.
Ordering fast food in China is done by I Phone
http://www.onenewspage.com/video/20150706/3055036/McDonald-and-KFC-go-mobile-in-China.htm
If the automated restaurants catch on, the hapless public won’t mind because they can avoid paying large tips.
Pat Buchanan has preached this for years, but the American people said, “No, Pat, No”!
You and I know, but the American people are in the dark at their own insistence.
A 20% tariff balances the budget. The best thing that could happen because the Feds could then raise interests rates without killing economy. Savers win.
You’re right.
And MW also contributes to desperate small businesses (NOT large corps, people) attracting illegals by paying them on the sly.
The MW stimulates all this illegal alien (I don’t care what the gov calls them) invasion.
It is price-fixing. Just that the price has to be a minimum, instead of a maximum as fascists like for the price of things and services.
Don’t know where you live, but the closest Carl’s to me is in Carson City, Nevada. Would eat there more often if I lived closer. Great food, IMO.
Never had a bad meal at a Carl’s when I lived in So Calif for 29 years, either.
Like I said Central, Trump gets it, loves America, and is as sharp as a tack. I’ll trust him and wait to see how everything plays out.
Define who you are talking about. I'm talking about the CEO of Carl's Jr. who is paid millions of dollars a year.
You are right.
There is a long history on taxes. The bottom line is that people and companies work singly and collectively to avoid them.
Adam Smith recommended a variety of low taxes to minimize economic disruption that proceeds from tax avoidance. Right now, I think our corporate income tax is too high and is leading to domestic job losses. Obamacare and social security also make the employment of Americans less attractive.
The problem is that government must still be funded. One part of the solution is for government to spend less. Reduce government mission, reduce government spending, reduce taxes in general. Privatize at every opportunity.
It seems there really is no point in thinking about this at the new FR; TRUMP is the answer.
J: ““A tariff is a tax and China and Mexico don’t pay the tax, WE, THE AMERICAN CONSUMER PAY the tax”
P: “Then don’t buy stuff made there if your highest personal value is avoiding taxes. Problem solved.”
Exactly, Pelham. The point of a tariff is exactly that - to get consumers to buy American products. If those products from other countries cost more due to the tariff, American companies can finally be competitive and will start making the products again.
Yes, completely free and fair trade is the ultimate fix - but we will never get that since China cheats with currency manipulation. This sets their prices where they should be, taking away the unfair edge China has over American companies.
If full time, which most are not. It should say $11,360 tax on every Full Time Equivalent.
Nevada is currently permitting Freightliner to run their Inspiration trucks on the highway. These are test vehicles at this point.
“>>Boy do we need some remedial economic refresher courses around here.”
We probably do. The half-educated no-tariff camp needs to go back and find out why the term ‘ceteris paribus’ is always used in economic modeling.
Free trade as described by David Ricardo is based on assumptions similar to the ‘perfect competition’ assumption used in supply and demand graphs. The real world includes the other factors that make simplistic modeling fail.
Agreed - there is no such animal as a tax which does no harm. But since as you say inflation is a harm as well, some taxes are as necessary as government itself.SOME writers have so confounded society with government, as to leave little or no distinction between them; whereas they are not only different, but have different origins. Society is produced by our wants, and government by our wickedness; the former promotes our happiness POSITIVELY by uniting our affections, the latter NEGATIVELY by restraining our vices. The one encourages intercourse, the other creates distinctions. The first is a patron, the last a punisher.Society in every state is a blessing, but Government, even in its best state, is but a necessary evil; in its worst state an intolerable one: for when we suffer, or are exposed to the same miseries BY A GOVERNMENT, which we might expect in a country WITHOUT GOVERNMENT, our calamity is heightened by reflecting that we furnish the means by which we suffer. Government, like dress, is the badge of lost innocence; the palaces of kings are built upon the ruins of the bowers of paradise. For were the impulses of conscience clear, uniform and irresistibly obeyed, man would need no other lawgiver; but that not being the case, he finds it necessary to surrender up a part of his property to furnish means for the protection of the rest; and this he is induced to do by the same prudence which in every other case advises him, out of two evils to choose the least. Wherefore, security being the true design and end of government, it unanswerably follows that whatever form thereof appears most likely to ensure it to us, with the least expense and greatest benefit, is preferable to all others. — Thomas Paine, Common Sense (1776)
By definition, your standard of living has just been lowered. Problem solved? I don’t think so. More problems CREATED by layering more federal government on top of problems the federal government created in the first place.
Problem isn’t “solved” until the federal government is put back into its constitutional cage.
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