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Still Want To Increase Minimum Wage?

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bnmappraisal

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This part jumped out at me from the OP article link

"It wasn’t that the restaurant didn’t draw customers; it was very popular. It’s just that economic justice is a terrible business model. But don’t tell the employees that; they refuse to believe that the venture was a failure. Sure, it lasted a whole two years, and perhaps the wages were more than fair, but now, everyone is out of a job. It’s hard to call that a success."
(my bold) Obviously, since it was so popular, it was bringing in $$$ but also as the article states, it wasn't even breaking even. So yes, doors have to close, and now everyone is out of a job.
 

Riick

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I'm sure with a few hundred thousand each from the City, County, State, & Federal governments, annually, it would be a perfectly viable pizza shop.
 

AMF13

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Whatever. We have a pizza tree out back. :cautious:


























:rof:
 

gregb

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Trickle up, trickle down...same difference.
 

Randolph Kinney

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Unskilled labor is a commodity. It has limited value and has global replacement/substitution as well as automation. Raising the minimum wage beyond the economic wage of unskilled labor simply means substitution takes place. As a result, the demand for unskilled labor falls in local markets when they are out of wack with the economic wage. Business that can't absorb the cost go out of business or move to a location that has a lower minimum wage.

http://www.latimes.com/business/la-fi-seattle-minimum-wage-20170626-story.html
 

reviewbe

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Wow, surprising news. Business Insider doesn't like the minimum wage. Who'd have guessed?
 

NachoPerito

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In Seattle the minimum wage has gone from $10 to $15 in the past couple of years.
What has happened?
Overall economy has seen no change.
Unemployment rate still super low
Employment has gone down in certain areas as businesses cut jobs for efficiency
Restaurants have raised prices to cover higher cost.
Restaurant closures have been about performance rather than minimum wage, but some have had a harder time.
Seattle isn't the best test case because its economy is so strong right now regardless, a minimum wage hike isn't going to change things. Customers are willing to pay higher prices at restaurants because they can.
 

DTB

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In Seattle the minimum wage has gone from $10 to $15 in the past couple of years.
What has happened?
Overall economy has seen no change.
Unemployment rate still super low
Employment has gone down in certain areas as businesses cut jobs for efficiency
Restaurants have raised prices to cover higher cost.
Restaurant closures have been about performance rather than minimum wage, but some have had a harder time.
Seattle isn't the best test case because its economy is so strong right now regardless, a minimum wage hike isn't going to change things. Customers are willing to pay higher prices at restaurants because they can.

You sure about that? I think a UW study finds pretty much the opposite of your post.
 
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