Yesterday I paid $14.50 for a beef taco, cup of rice, and soft drink at a Mexican fast-food joint. I was the only person in the restaurant at about 4:00 pm. Three years ago, that same meal probably would have cast about $9.50.
This is what these radical types pushing these high minimum don’t understand. If businesses are forced to pay higher wages, then the price of whatever product they sell needs to go up as well.
And, if the price of the products rise, many people will decide not to go there as often and buy the products.
Then, if sales are flat or don’t rise enough to cover the costs of higher wages, the business will be in financial trouble.
Most people don’t understand that the biggest expense in most businesses, is paying the hired help.