Prices rise as the minimum wage increases in several states

Associated Press ^ | December 30, 2018 | David A. Lieb

[Olog-hai]

At Granny Shaffer’s restaurant in Joplin, Missouri, owner Mike Wiggins is reprinting the menus to reflect the 5¢, 10¢ or 20¢ added to each item.

A two-egg breakfast will cost an extra dime, at $7.39. The price of a three-piece fried chicken dinner will go up 20¢, to $8.78. The reason: Missouri’s minimum wage is rising.

Wiggins said the price hikes are necessary to help offset an estimated $10,000 to $12,000 in additional annual pay to his staff as a result of a new minimum wage law taking effect Tuesday. […]

New minimum wage requirements will take effect in 20 states and nearly two dozen cities around the start of the new year, affecting millions of workers. The state wage hikes range from an extra nickel per hour in Alaska to a $1-an-hour bump in Maine, Massachusetts and for California employers with more than 25 workers. […]

A series of studies by the University of Washington has produced evolving conclusions. In May, the researchers determined that Seattle’s initial increase to $11 an hour had an insignificant effect on employment but that the hike to $13 an hour resulted in “a large drop in employment.” They said the higher minimum wage led to a 6.9 percent decline in the hours worked for those earning under $19 an hour, resulting in a net reduction in paychecks. …

[riri]

I remember when breakfast was like $2-3 and I am not talking that long ago either.

Last time our family of four went for breakfast, it was over $70. I haven’t had the desire to do it again after that. Besides breakfast is one of those meals that are often better at home.

[meyer]

You are not factoring in that as wages go up the need for public assistance goes down.

Except that when wages are forced up, small outfits tend to close shop because they can't afford to raise prices any higher than the "big boys".

I see a handful of small restaurants and such closing their doors, while I see McDonalds replacing more people with kiosks and potentially, robots.