NYC:
Last December, the final phase of increasing the minimum wage in New York City to $15 per hour went into effect. (Well, at least the last stage for now.) It was considered a huge victory for the Fight for 15 crowd and, presumably, a big win for workers, particularly in the foodservice industry. So how has that been working out since then? As the New York Post reported this weekend, the law of unintended consequences has come roaring into play. They feature the story of one taco and tequila joint on the upper west side that’s been doing a thriving business for a quarter of a century. But now it’s all coming to an end, and they’re far from the only restaurant feeling these effects.Unintended, but entirely predictable consequences.
SF:
San Francisco is known as a haven for good food, but restaurants in the city are increasingly finding it hard to stay open...I'm sure those aren't the only cities.
"The way people order food, you know online, put a lot of price pressures on us," Mitra explained, "So they took our margins away, so we are giving up 25-30 percent of our prices to the delivery companies."
On top of that, he said, the high cost of living, along with employee benefit requirements by the City, has led to increased business costs.
2 comments:
Yep, not the only cities-- Seattle area is seeing this too, but it's being downplayed. The city of SeaTac (where the airport is located) led the way, proudly Progressive...but then unforeseen circumstances happened: many of the folks to whom "living wages" were promised, in order to get them off of welfare programs, asked that their hours be cut.
They were making too much money, at 15/ hour, to be eligible for certain goobermint freebies.
Unfortunate, but it's basic economics. I was arguing with my hairdresser about this the other day.What they don't seem to understand is that the cost of employment is rolled into the final cost of the service or product. If you raise that, you force prices upward making basic goods still unaffordable. The deal is that if you're an adult still making minimum wage at the age of 45, you've either had criminal, drug or social problems that have limited you in life. Employers are going to expect more dedication in exchange for that money and the same people SJW's are trying to help will be replaced by those with more education and skills bringing those folks back to square one and on the dole.
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