A college professor once told me that by adding to costs, minimum wage laws could encourage businesses to be more productive. And we all know laying extra burdens on people’s backs has motivated them so well in the past.
So why doesn’t Subway patent an automated $5 footlong maker, or something? They have all the economic incentive in the world!
Yes, they automate or offshore their production and eliminate US based labor costs entirely, bypassing the minimum wage laws. Not really an option for small businesses though, they simply higher fewer people or close the doors.