Restaurant owners blast 'out of touch' Biden for townhall remarks President told employer suffering labor shortage he should raise wages

wnd.com ^ | 7/22/2021 | Art Moore

[central_va]

The economic reality is if you want employees then you HAVE TO RAISE WAGES. It doesn't matter what you "opinion" is on the underlying cause of so called labor shortage.

A pox on both houses.

[central_va]

You are. PAY MORE AND YOU WILL GET EMPLOYEES. I think it sucks that that give-a-ways are causing this but that is reality. I also think bacon costs to much too but my grocer doesn’t seem to care.

[central_va]

Labor has not had an inflation-adjusted wage since the1970s and that has caused many avoidable problems.

Correct.

[central_va]

when there are jobs available there is NO reason to pay people not to work.

....but that is the reality. Deal with it. Stolen elections have consequences.

[central_va]

a) Solution. Recognize conservative economic policies work. Such as supply and demand. If the business isn’t viable with its current model, change the model or write off the business.

Great post.

[central_va]

The Democrats are SUCCESSFULLY driving a wedge between the GOPe ( a lot of Freepers fall in this category ) and the working class. Wow Republicans are dumb....

[central_va]

All Biden is doing is quoting simple supply and demand. If demand is not being met then it's because there aren't enough people willing to work for the wages they're offering. Increase wages and supply will increase as well.

How is it I agree with you?

[central_va]

The high cost of food has little to do with the spot price of unskilled labor. That place can charge more because their competitors are refusing to hire so they are getting most of the business.

[central_va]

Restaurants just have to compete with the government paying people not to work.

Just like IT workers have to compete with 180,000 new indentured H-1B visa imported workers every year. LIFE SUCKS. Conservatives need to open their eyes...So small bidness I ask: HOW DOES IT FEEL?

[DoodleDawg]

How is it I agree with you?

About the only time you and I agree are on this subject and H-1b visas. Scary that we agree even that often I know.

[Jim Noble]

he’s got big issues and has no business being the President or in any position of power/authority

I wouldn't be concerned.

The power and authority of the President has been sharply curtailed since November 22, 1963 and has basically been zero since January 20, 2017.

Biden has no power and no authority.

[econjack]

...if you want employees then you HAVE TO RAISE WAGES.

Not true. The other way is to remove subsidies that the unemployed are currently using as their source of income. Most states pay 2/3 of you wage as benefits. People do rational calculations and, net of taxes and zero work hours, being unemployed may seem attractive to some, so they withhold their labor. If you remove the unemployment and other transfer payments, you will see an increase in labor force participation rates.

[econjack]

The difference is you are getting some, if not all, of your money back whereas I know SS will not exist by the time I am old enough to retire.

I need to live to age 91 just to get back the actual cash I put into the system. I will never lives long enough to recoup the opportunity cost of SS in terms of lost interest for over 45 years.

Privatizing SS was tried under Bush II, but people said "No!". Most said they couldn't manage the money. While that may be true for some, it's not true for all. Personally, I'd like to have a choice when I start working: The employee and employer both legally required to pay the same amount, but those payments could be into SS or a private account controlled by the individual (subject to same withdrawal laws, but managed as they saw fit). If you elect to be in a private plan, you sign away your rights to any future gov't sponsored retirement benefits.

[Svartalfiar]

Labor has not had an inflation-adjusted wage since the1970s and that has caused many avoidable problems.

People who want to dine out need to pay the workers what the market requires. That’s all there is to it.

And yet, there's not that many places that pay minimum wage. Many that used to start around $7.25 to be "competitive" ($0.10 above minimum!), now have signs starting people at $9 or $10 an hour. Just because the gov't-forced minimum wage hasn't gone up, doesn't mean many places haven't. Plus, minimum wage is a starting pay for someone with no skills - a fresh high school student or illegal alien. Someone with experience in a field can usually get an extra dollar or two starting.

If people dining out have to pay what "the market requires", then you'll see a lot of businesses going under, and a Mickey-D's $5 menu! It is very difficult for a restaurant to raise prices, people are very sensitive to that. And to cover a near-doubling of wages ($7.15 min to $15 min) is gonna be 30-40% price increases across the board...

[Svartalfiar]

All Biden is doing is quoting simple supply and demand. If demand is not being met then it's because there aren't enough people willing to work for the wages they're offering. Increase wages and supply will increase as well.

You're forgetting parts of that equation - economics has something known as a price floor. And a high price floor (bonus UI, extended UI) means the supply (workers at that high price point) goes up, but the demand (those willing/able to pay that price - and ultimately, the consumer buying the burgers) goes down. And as long as government is artificially increasing the floor, then employers will have a hard time competing with that.

[Jim Noble]

If people dining out have to pay what "the market requires", then you'll see a lot of businesses going under, and a Mickey-D's $5 menu!

So, how much destruction in the heartland are you willing to create to enjoy a McDonald's $1 menu (or whatever)?

There is no inalienable right to eat in a restaurant. It was once a luxury, perhaps it will become a luxury again.

The health and the integrity of the nation are cosmically more important than a Happy Meal.

[Mr. Blond]

Oh yeah, “learn to code”. You might be one of those lucky coders needed to clean up after the Indians. Their “cut and paste” code that is, not their sanitation habits.

[Svartalfiar]

So, how much destruction in the heartland are you willing to create to enjoy a McDonald's $1 menu (or whatever)?

There is no inalienable right to eat in a restaurant. It was once a luxury, perhaps it will become a luxury again.

The health and the integrity of the nation are cosmically more important than a Happy Meal.

Raising the minimum wage a bunch is likely to do way more damage than a few people working for minimum wage. What the market requires is determined by the market - not by government fiat. The government paying people more to not work is clearly a distortion that affects the labor supply, and the wages people are willing to work for. If someone offered you a 20% pay cut to not have to work, would you not take it?

There's also no inalienable right to be paid what you want. True minimum wage is 0 - if people don't go out to eat because restaurants are too expensive because their employment expenses are too high, then those restaurants will fold and everyone working for them will make, not a high minimum wage, but nothing. And it won't just be restaurants, the same thing will repeat through almost every other industry as well. The health and integrity of the nation do not depend on making minimum wage higher.

[Jim Noble]

What the market requires is determined by the market - not by government fiat

You are arguing against yourself.

Payment of money "not to work" changes the market. It doesn't abolish it.

The labor market at this time requires higher wages.

[central_va]

The other way is to remove subsidies

We wish. So are you God Emperor now and going to command that this happen? When O Lord is this going to happen? Tell us.