Notice how the libs finally take notice only when Starbucks and sushi bars start to close?
It doesn't take a Ph.D to realize that paying a high school drop out $15 an hour to cook french fries is not a good business plan. Restaurants are rapidly going out of business in the Bay Area, after San Francisco passed a $15 minimum wage law in 2014 and the State of California followed suit in 2016. Yet the media are struggling to make the connection between high minimum wages and restaurant closures.
The East Bay Times, for example, asked Tuesday: “What’s behind the spate of recent Bay Area restaurant closures?” It barely mentioned new minimum wage laws, brushing them aside as if they were largely insignificant.
Story here.
4 comments:
The whole minimum wage increase is insane. It has the same ripples across the nation as people equate what should be prevailing wage (what you're worth) with minimum wage.
As you suggest, high school kids working in the fast food service industry are not worth what businesses are being forced to pay them and the businesses then shutter their doors and nobody is employed -- but the progressives are happy.
So even $15 an hour and untold numbers of illegal immigrants, restaurants can not stay in business in California. Sad.
It really is a shame. As the economy improves the old "rising water lifts all boats" theory comes into play. But trying to raise only a few boats above the established water level is bound to fail. Nice work California. Unfortunately economics has a way of punishing all people, not just the stupid ones.
Newton's Third Law on display.
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