Posted on 01/04/2024 5:02:37 AM PST by voicereason
Moonstone Bistro, a popular fine-dining restaurant in west Redding, has announced they will stop serving lunch, citing California’s increased minimum wage requirements as a critical factor. Starting in April, California fast-food chains, with more than 60 locations nationwide, will be required to pay their employees $20/hour. Across the state, minimum wage continues to climb and now sits at $16/hour. Moonstone Bistro won’t have to follow that first law, but they do expect its ramifications to be felt.
(Excerpt) Read more at msn.com ...
Small (minded) business wants to control labor rates which makes them no different than the government trying to set a floor on wages. Both parties are FOS.
This is what I am talking about. This is the mindeset of an anti worker, anti capitalist and anti free marketeer. A capitalist and true free marketeer says labor is subject to the laws of supply and demand. YOU, the user of labor, have NO control over the supply or the demand of the any comodity ESPECIALLY LABOR. Get it?????
The govt setting a floor on wages affects everyone using labor the same. Deal with it. The govt ( politics ) plays a huge part in economics. That is an unchangable fact. Sorry the academic world of pure economics only exists in text books.
Labor is a commodity, just like flour, eggs and electricity.
Will be required to pay their employees $20/hour.
The central committee is only getting started.
“I wonder if the state of California will check Taco Truck stands to see if they pay employees 20 dollars an hour”
Taco trucks don’t meet the criteria to have to pay $20. But they have to compete for hired help that can get $20 an hour at a chain like McDonalds, Wendys, Taco Bell and so on. I imagine most trucks are owner operated using family members so they may not need to hire many people if any.
What the “Living Wage” fools don’t seem to be able to grasp is that not every job that needs to be done is worth paying a living wage to do.
These people have made it worth it to McDonalds and other employers to pay for self service ordering kiosk and experimenting with automated burger making machines.
The people trying to unionize McDonalds and other fast food franchises and just hastening their own loss of a job.
There is also an economic reality that if you pay a person more than it worth to do, you must raise your prices for that product to compensate for the added expense. The result is that that product will become too expensive for some customers. These customers will either do without your product or take their business to a rival. Either way you have lost a customer.
People that want to turn entry level jobs in to careers are simply too lazy to work in to a skilled trade and they want government to legislate their employment in a minimal skill and minimal effort job.
The intentions and capacities behind both are like night and day. Do you honestly believe a singular small business wanting to set the labor rates for its own employees is equivalent to the government setting a wage floor for entire industries?
Oh, but the user of the commodity labor does have control over the cost of labor. They set a wage commensurate with what the job is worth to them in order to sell a product at a marketable rate. That’s the point, a marketable rate for a product. if you want to spend 20 bucks for a big mac, go for it. A lot of people won’t go there when there are other viable alternatives, some much better quality for roughly half the price. To whit, I’ve seen exactly this at more than one sit down restaurant with wait staff and actual service (less than McDonald’s for a similar meal option, but much better product).
If they can’t hire anyone because of the wage, then the job falls on others to do within their capability to manage it. Either way less people buy the product, or there are less customers able to get a product because demand is higher than output capability, but at least the business owner isn’t getting shafted to make much less money due to labor related costs (many of which besides simple hourly pay are driven up by a higher wage as well).
Now the competition for employees is heightened by forcing higher wages for similar jobs in some portions of the same sector, so certain business owners are at a disadvantage. Essentially this is crony capitalism, but in a roundabout way (or it has a similar impact).
As if small businesses have any leverage whatsoever to control labor rates.
In my neck of the woods, hourly wage rates for small businesses like restaurants and convenience stores are basically controlled by Walmart. That's because Walmart is the largest employer in the area that hires entry-level, low-skill labor. If you're a small business who can't match Walmart's pay scale, then you are going to have a hard time attracting any entry-level workers outside your family.
Have you run ANY business? I ran huge 4 star hotels and now own 2 small restaurants. If I was forced to pay $20 an hour I’d close them.
OMG, you’d flunk Econ 101
“Have you run ANY business? I ran huge 4 star hotels and now own 2 small restaurants. If I was forced to pay $20 an hour I’d close them.”
Now, what if the courts intervened on behalf of employees and ordered you to reopen and run the business at a loss? They would expect you to repay workers the profits you exploited from them in preceding years.
/Bolshevism
Don’t give them more ideas
The govt ( politics ) plays a huge part in economics. That is an unchangable fact. Sorry the academic world of pure economics only exists in text books.
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