Posted on 06/17/2017 10:21:01 AM PDT by HarleyLady27
In a pair of affluent coastal California counties, the canary in the mineshaft has gotten splayed, spatchcocked and plated over a bed of unintended consequences, garnished with sprigs of locally sourced economic distortion and non-GMO, “What the heck were they thinking?”
The result of one early experiment in a citywide $15 minimum wage is an ominous sign for the state’s poorer inland counties as the statewide wage floor creeps toward the mark.
Consider San Francisco, an early adopter of the $15 wage. It’s now experiencing a restaurant die-off, minting jobless hash-slingers, cashiers, busboys, scullery engineers and line cooks as they get pink-slipped in increasing numbers. And the wage there hasn’t yet hit $15.
As the East Bay Times reported in January, at least 60 restaurants around the Bay Area had closed since September alone.
(Excerpt) Read more at fresnobee.com ...
It’s called a business model and restaurants have had it nailed for years. It works from the most inexpensive restaurant to the most expensive.
When the business model is working fine, everyone is getting paid, the bills are paid and there’s a little left over for the owner, only a fool would decide to ‘enhance’ the business model.
There’s a reason for the wage level in restaurants: it’s what the business model dictates. Don’t play with Mother Nature. She might send some lightening strikes your way.
The consequences of the 15 dollar minimum wage are now slapping us in the face. It was predicted but those benefiting from the increase—the unions—fed low economics minds lies and propaganda. Politicians knew if they jumped on board with this fraud, voters would favor them in the elections. Who would pass up more money? Once again, the fantasy world on the unicorn farm sets the lockstep mentality for group think.
Which is why the narrative has switched to a basic income.
Honestly, there is a huge issue that needs to be addressed. Who is going to buy things when few are employed? With the rise of automation, there will not be that many jobs.
Heck, even eye doctors are suing to stop automation.
Around here, fast food starter jobs pay $9 - $12. Experienced line cooks look to be making $13 - 14 an hour.
It’s hard to imagine that line cooks in SF were making less than $15 an hour before the new law kicked in.
The problem is more likely the immigration enforcement than it is the minimum wage.
problem here, is..RATs are way past minimum wage.
It’s now a living wage they are after.
What’s that, about 100k in San Fran ?
Arizona’s “compassionate” voters passed a ballot initiative for a minimum wage increase to $10.00 that included a “paid sick leave” provision. Those employers, including non-profits, with 15 or more workers must provide at least 40 hours of paid time off annually. Those with fewer than 15 employees must provide a minimum of 24 hours per year.
The accrual rate is one hour of paid sick leave for every 30 hours worked, until the minimums are reached.
Our Church Vestry is wrestling with this right now. Up until now, there hasn’t been any time accounting for employees. When people go sick, they still got paid.
Good thing that most of us will be gone in 96 days! Maranatha!
Next the Socialists will demand that no restaurants can close and owners will be imprisoned for not remaining open. When dogs go missing in their neighborhoods and victory gardens are growing in what used to be parking lots they will deserve all the consequences.
It’s ludicrous.
On top of that, real estate prices are so high that just paying rent or mortgage consumes a huge chunk of income; how can people afford to buy $20 fast food burgers on top of that?
As a comparison: the East Bay house my family lived in when I was in high school is 1,470 sq. feet with a 5,375 sq. foot lot, 3 bedrooms, 2 bath, estimated value $706k. I could buy a mansion for that price here in Maryland, with over 3,000 square feet and a large lot, way more house than I need or want.
Fast food will survive by automating— kiosks, robot burger flippers, etc.
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There are some fast food places that already have these, and the people are not happy, no jobs, the customers don’t mind, food gets out faster...
Marie Antoinette had nothing on old Hitlery. Now, when will somebody do the world a favor and chop the old hag’s head off? Maybe one of Huma’s family members will do it to her as part of an honor killing.
Agreed. It’s wonderful writing.
L
A 1 day ticket to Disneyland is $124. They won’t die anytime soon, but like all increases to operating costs it will manifest itself somewhere, probably less staff, a poor er experience in some way.
Welcome to the age of robot technologies where the minimum wage law is bypassed for automated fast food restaurants where you order by tap screen, insert your debit card and the robots will make your food to your order with perhaps one or two “managers” on hand in case ingredients run out or the conveyor belt gets jammed.
You can pay two fast-food “technicians” $20 hour and the rest of the jobs have been lost to robot technology. Take that, unions!
Oh goody a die in..hopefully they will actually ya know, starve instead of what the Palestinians do when they do a “die in” and sneak food in and say “Yeah Im starving”
You are so dead on. A colleague of mine, years ago, Stephen DeCanio, did a (little cited) study on the impact of the minimum wage law on business expectations & hiring.
People don’t realize that the FIRST minimum wage law was part of the NRA in 1934, a full year before it was presented as its own, stand-alone law. Anyway, DeCanio found that the minute the law went into effect, business hiring based on HOURS absolutely flatlined. Oh, they may not have fired people, but they chopped hours. He also found that by 1939, virtually 100% of new unemployment was due to the minimum wage.
How is anyone supposed to pay employees 15$ an hour when they generate less than 15$ an hour? Is there some sort of magic involved? Please tell me so I can pay myself $1000 an hour.
Every cloud has a silver lining.
It’s a feature, not a bug!
That is probably why every Dunkin Donuts I’ve been in lately is owned by someone named “Patel” or similar.
If one’s family runs the place from kitchen to cashier, they need not be paid at all.
Hard to compete with that...
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