Posted on 08/09/2014 10:59:48 AM PDT by Olog-hai
A Minnesota café is stirring up controversy by adding a 35¢ “minimum wage fee.”
Minnesota implemented a minimum wage hike from $7.25 to $8 on Aug. 1, so Oasis Café owner Craig Beemer calculated what it would cost per ticket to accommodate the increase. …
(Excerpt) Read more at foxnewsinsider.com ...
Bad links....
That is basic economics. Owner of business has to pay more to employees, so he must pass on the cost to customers.
Hope it this idea gains currency.
I can see no reason for this to be controversial. The restaurant has only one source of income: Their customers. So it is Their Customers who will have to pay for the minimum wage hike. All that is different here is that this obvious fact is being tossed into the face of Libs who lack even a 2nd graders understanding of basic economics.
When government decides to implement such a stupid idea, somebody should educate the populace that every bad idea has a cost, to them personally.
Every additional cost to a business is eventually passed on to the consumer.
If the price of labor goes up that cost will be absorbed in the price of the product produced by that labor.
So if the price of labor went up by 75 cents per hour that increase must end up on the bill of that person buying coffee in that shop or the shop must close.
This not a difficult concept. The only controversy evident in the idea is that the shop owner had the temerity to actually do the politically incorrect thing of shoving the fact in the face of the Minnesota politicians.
I love it. More business should break out and expose the government imposed taxes and fees. Call it “socialism fee” or something. Liberals want these fees hidden.
Waitresses/Servers have never received minimum wage, they are exempt as they get tips, and they depend on tips to supplement their income. Does this minimum wage hike mean they now have to be paid a true minimum wage? That would explain the .35 cents....not complicated.
What the left, most of whom have never owned a business or been engaged in a business operation, never understand is that every bill that is paid by a business owner is ultimately paid by the customers of that business. No matter if it is wages, product for resale, vehicles, lease, rent or purchase of a location, or ... ta-da ... wages, the only source of the means to pay the debt are customers.
What has the left’s undies bunched up over this instance is that it is named, rather than being rolled into the total bill. By naming it, the business owner has made it clear why that extra 35 cents is on the bill. It ain’t his or her fault.
If you don’t like it, eat at another place. Simple, but the progressives won’t buy it. It’s all about feelings.
Perfect and should be on every receipt we receive.
Once people realize all the ways that government forces invisible taxes onto people, maybe the will stop voting for all the crap that gets into our daily purchases.
But I can dream!
Meanwhile the media never, ever, ever refers to liberal initiatives (such as minimum wage increases) as “controversial.” This is one of the ways the MSM controls the debate, by indirectly indicating the issues on which disagreement is permitted.
Now if he did notify the customers before the meal, I like it as a way of rubbing the public's nose in the effects of the government's new laws.
A customer can’t really hold the charge against the owner...as the customer pays it whether it’s visible on the ticket or not.
Well, there are the dim/lib/progs that would hold it against the owner, I guess.
Should be a percentage, not a flat fee per ticket, if it’s intended to represent actual additional cost of providing the food.
2.5% ??
It makes sense but its not always that simple
Freepers frequently assume all costs can be passed on to consumer by default
No they can’t in the real world
Semi public monopolies can thru approved rate hikes
The Seven Sisters used to with petroleum products
But its impossible with competition to have your sale point reflect every increased cost of doing business
Competitors undercutting and customers resistance make it difficult
It moves along pushing uprices eventually no question but they owner may have to eat a lot
Utility hikes kind of sneak by in winter but say property tax hikes which in my world are a big cost cannot simply passed unless we had a cartel and colluded
I said this on an earlier thread. New York (maybe all states for all I know) does not permit a gas station from advertising how much of the price of gas is taxes. I guess the state is too embarrassed or something.
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