The Lid: After hiking their minimum wages, the states of New York and Massachusetts have found that, far from being a net positive, the wage hikes have resulted in job loss and economic chaos.
The states have discovered job loss, store closures, and reduced hours of work for low wage workers, according to Forbes.
The magazine recently noted that the “ugly side” of the Minimum Wage outweigh the good parts.
“The ugly side is the payroll tsunami they unleash for smaller businesses, already under stress from soaring healthcare costs and rents,” Forbes wrote.
For some of these businesses, the minimum wage hikes tip the balance between staying in business and going out of business.
That’s what happened to once iconic Boston restaurant Durgin-Park in Faneuil Hall. It closed the doors after two centuries in operation, as it couldn’t cope with wage and healthcare premium hikes.
The wage hike killed these workers’ jobs. MORE
Dang those greedy small businesses! Cuomo should unleash the mighty power of his magnificent state income tax and audit authorities to harass and shakedown these rich people to drive them out of business. He must order the State to stop doing business with any banks making loans or holding accounts for these greedy bastids.
Hmmmmm… whodathunk?
“Speaking the truth in times of universal deceit is a revolutionary act.” Geo. Orwell
Anyone with a normal level of intelligence knows that mandated minimum wages cost jobs and close businesses. That tells us something important about the intelligence of those who advocate and legislate minimum wage laws.
Minimum wage jobs are outpacing rate of inflation. I made $3.15/hr 32 years ago. Inflation adjusted, minimum wage should be $7.16. In beautiful Illinois, min wage is $8.25. By 2025 it is going to $15. Inflation has averaged 2.6%. If you compound inflation out to 2025 from $8.25, you get $9.62. If you stick with 2.6% from the past 32 years, minimum wage should be $8.35 in 2025. From current rate, minimum wage employees are going to be overpaid $5.38 in 2025. From inflation rates dating back 32 years, minimum wage employees are going to be overpaid $6.65 in 2025.
In other words, a $15/hr min wage employee is equivalent to hiring almost 2 employees, but you only get 1.
This is what happens when the mob overrules basic economics and politicians pander to it.
The only way $15/hr by 2025 makes any sense at all is if inflation is 13% for the next 5.5 years. Maybe it will be. At the same time, the fed is going to hold interest rates at 2.5% to 3% and everyone is fuuuuckkked. Even if they hike interest rates to 10%, everyone is still getting shafted.
7.50 an hour, turn 8 tables of 4 20$ a plate even at 10% that is 64 dollars an hour in tips more or less.
Or 15.00 an hour with no tip because they are now making a livable wage.
Plus the restaurants add 18% for health care.
It is a lose lose for everyone in the restaurant.
The left can’t do math.
…the only job a Democrat politician is concerned about preserving is his own. If the lies he uses to keep it causes others to lose theirs, so be it, just blame Trump…
Now we know why there was only Taco Bell in Demolition Man. In the future only giant corporate chains will be able to afford rent, minimum wage, and taxes in big cities.
Hell, eventually it’ll be “Goldman Sachs Presents New York City”. Like rebranding a sports stadium but you get naming rights for a whole town.
I’d be willing to bet that the majority of those that have already lost their jobs and those that soon will, voted a straight Democrat slate in Federal, State and Municipal elections. I suspect that bit of knowledge isn’t reviewed when they’re sitting at the kitchen table bemoaning their fate. I’m sorry that people have lost and will lose their jobs but if they’re going to vote for Democrat lies that are achingly obvious then perhaps hard lessons are in order.
@Uncle Al ►DEPLORABLE DREG PEASANT◄ April 28, 2019 at 7:29 pm
> That tells us something important about the intelligence of those who advocate and legislate minimum wage laws.
The most important advocates of minimum wage increases don’t work for minimum wage, nor for the benefit of those that work for minimum wage. Huge numbers of union members’ wages are indexed above the minimum wage. Government union members are never at risk of losing their jobs. Free money at the peoples’ expense? Free money at the expense of the peoples’ jobs? Six of one, half a dozen of… oh! come on! it’s not like they’re people people!
But, if we had a universal income, free college and free healthcare this would work.
My first job was at $1.25/hour. 6am-6pm at a new greasy spoon in town as hostess/cashier. High heels and a smile. I was 17. My bro-in-law to be didn’t like all the LEOs hanging around me…made me quit by the 3rd day after surveiling the scene.
Oh, did I mention Dem town near Chicago?
Never forget that the real minimum wage is $0.00
dirty little secret: when minimum wage goes up, so do most union contracts … automatically
My Massachusetts VFW Post ran a public bar and grill for several decades. We were bleeding money slowly, but the Board of Directors managed to keep things going for a number of years. Then MA instituted minimum wage hike.
First we raised prices as much as we could to still remain below other similar local businesses. Still losing money.
Next we started cutting bartender’s hours, with our club manager taking up the slack. Still losing money.
Finally we cut to the bare bone, cutting hours open, closing entire days when we got very few people walking in the door, but the minimum wage kept going up every January 1.
We finally had to throw up our hands and close the doors permanently on 31 January of this year. We’re now selling the building. And people throughout the community are wondering why the VFW had to close?
“Anyone with a normal level of intelligence”
Aye, thar’s the rub!
We all can eat at the gov’t cafeteria.