San Francisco's Higher Minimum Wage Costing Hundreds of Jobs
Yup, make financial demands of your employers, have idiots in government force them to do just that, and now enjoy the results. I'm glad it's in Fruitville. Maybe others will take note and not make the same mistakes.
San Francisco's Higher Minimum Wage Costing Hundreds of Jobs
Here's one from our "Least Surprising News of the Day" file. San Francisco raised its minimum wage to $15 an hour by July 1, 2018. After immediately going up to $13 an hour when the ordinance was passed in 2016, the wage is set to rise to $14 an hour July 1, 2017, before settling on the $15 an hour target next year.
The result? Well, you can guess the result.
The Daily Wire:
There is no doubt that driving the minimum wage up to $15 an hour will cause thousands of restaurants to close. But the problem with blaming the rising wage on the 64 restaurants that closed is that it's impossible to tell how many would have closed regardless of what the minimum wage was.In the winter of 2016-17, 64 restaurants around the Bay Area have closed. And these weren’t your garden-variety restaurants that were parts of national chains; they closed all over the area, from Berkeley to Hayes Valley to Oakland to the Embarcadero to Inner Richmond to the Marina to the financial district.
But that possibility didn’t matter to the groups fighting for a wage hike, including “Fight for 15,” which stated, “We’re robbed on the job by our employers looking to cut corners. And it’s not like our employers are struggling — these are multi-billion dollar corporations.”
In April, the Harvard Business School, released a study that examined restaurants in the San Francisco Bay Area between 2008 and 2016 titled, “Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit.” The study posited that a $1 increase in the minimum wage led to a roughly 14% increase in the likelihood of a median 3.5 star restaurant closing. The study concluded that over the next two years, San Francisco’s restaurant industry would shrink, meaning the workers would lose jobs.
Shhh. Don’t tell that to the restaurant workers. Let them find out for themselves.
Up to 90% of all restaurants opening this year will fail within three years. That's the economics of the business and a minimum wage won't change that. Of course, a $15 minimum wage makes it harder to succeed, but as in all things, if you build a better mousetrap, you're more than likely to end up a winner.
Rest here - https://pjmedia.com/trending/2017/05...dreds-of-jobs/
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