Tuesday, May 23, 2017

Wage Hikers Strike Again

San Francisco has become another example of why wage hikes don't work, but there are others:
The high minimum wage affects restaurants on the margin -- those already losing money or barely squeaking by. How many of those would eventually have succeeded without the wage hike, with success being measured by the ability of the business to stay open for five years or more? Impossible to say.

That Harvard study appears to take the factors above into consideration, so at least nine of those 64 restaurants were forced to close because of the higher wage. But no study can predict how many restaurants won't even open because of the high minimum wage. An established business can get away with raising prices to a certain extent as well as cutting staff. But how many potential restaurant owners are looking at the numbers and changing their minds? Again, we'll never know.

Unions have been pushing the "15 or Fight" movement because the higher minimum wage means higher wages for their members in the trades and elsewhere. Few restaurant workers are unionized, so unions don't care if those workers lose their jobs.
Some workers are always more equal than others...

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