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 ...
The ROOT CAUSE of our economic woes including business leaving our shores is the FEDERAL GOVERNMENT (minimum wage, regulations, unions, and taxes) of businesses moving elsewhere. Federal government is the problem NOT the solution. Tariffs are MORE federal government and do NOTHING to attack the ROOT CAUSES of the loss of jobs in our country.
A tariff is a tax and China and Mexico don’t pay the tax, WE, THE AMERICAN CONSUMER PAY the tax in the form of forced higher prices. TARIFFS, LIKE INCOMES TAX AND INFLATION, DIRECTLY LOWER OUR STANDARD OF LIVING.
We're already paying higher prices for food because of the destruction of our industry. Food is one of the few things we export in huge amounts. Our ability to trade debt for our trade deficits is declining and we're paying more and more in raw materials which drives up prices for US firms even more.
Question: What do you call a nation that exports food and raw materials in exchange for finished goods? Answer: A poor 3ed world nation.
He’s correct.
Hello Puerto Rico!
“Puerto Rico’s crisis illustrates the risks of minimum wage hikes”
_________________________________________
“How US wage laws helped sink Puerto Rico’s economy”
http://nypost.com/2015/07/11/how-us-wage-laws-helped-sink-puerto-ricos-economy/
____________________________________________
“Puerto Rico’s Pain Is Tied to U.S. Wages
Economists say island’s use of the mainland’s minimum pay helps crimp its economy”
http://www.wsj.com/articles/puerto-ricos-wages-are-no-benefit-to-its-economy-1435787367
But wait!
The CEO was supposed to reduce his income to $50K/yr and distribute the balance to burger flippers......
Great analysis. Most describe the problem very well. But NOBODY can show how tariffs solves the root causes of higher costs of doing business forced by the federal government.
What needs to happen is quit describing the problem and start identifying and attacking the CAUSE of the problem which is the federal government and things like federal-government-forced minimum wage.
Please tell that to the hoards of protectionists here on FR. Boy do we need some remedial economic refresher courses around here.
It is a move to improve Carl's food quality, which sucks. He is just using the minimum wage as an excuse.
If there is no money to circulate, jobs are lost. How much money does this guy make a year and how much has he stashed away in off shore accounts.
What a scumbag.
Tell us again how no money circulating in the middle class creates jobs again. I missed that part. In other words, you can't take a snippet and identify that as the problem.
>Great analysis. Most describe the problem very well. But NOBODY can show how tariffs solves the root causes of higher costs of doing business forced by the federal government.
The idea that free trade will fix our regulatory nightmare is nuts.
To reverse our regulatory nightmare of a system, all it takes is one president with the will to crush the bureaucracy. But so far the bureaucracy has won even against Reagan. Which is we’re trying a CEO this time around.
Surprising that the Washington Post actually coveted the fact that an artificially high minimum wage contributed to the collapse of Puerto Rico’s economy.
You need to wake up. WHO is taking all this money? You think the owner of the restaurant so he can undermine his own business? Are people around here smacked out of their heads?
The $4 TRILLION MOSTLY UNCONSTITUTIONAL federal government, that’s who’s wasting, stealing, and taking the money in the form of forced minimum wage, high taxes, useless dead-end regulations and protected unions.
Of corse Donkeycare has no effect on hiring, hours worked and wages.
Free trade will “fix government regulations? What???
WE the PEOPLE through the states and elected officials need to “fix government regulations” by NUKING THEM along with the entire unconstitutional administrative state. THAT is how you “fix government regulations.” By REMOVING government regulations.
Free trade is what you get when you REMOVE government waste and interference.
This would have happened if there was no minimum wage. AUtomation is coming and none of you should think you are immune. Within our lifetime we will see jobs like taxi drivers, commercial truck drivers, airline pilots (not a low skill job) and many other jobs become droned and automated.
Why isn’t this just one sentance click bait like all other IBDeditorial click baits?
“A tariff is a tax and China and Mexico don’t pay the tax, WE, THE AMERICAN CONSUMER PAY the tax”
Then don’t buy stuff made there if your highest personal value is avoiding taxes. Problem solved.
Obviously you don’t know jack about economics
“It is a move to improve Carl’s food quality, which sucks.”
Lol. The last thing Puzder is worried about is food quality. One of the first things that he and his gang did when they wrested control of Carl’s Jr away from the founder was to lower the quality of Carl’s once-excellent food. The Puzder model has been to substitute soft-porn advertising for a quality product that sold itself.
Funny. But he evidently knows more about the heavy investments being made in self-driving vehicles than you do. Every major high tech firm, auto company, and research university is pouring money into this field. Even Uber is among the heavy investors.
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