Liberals raise the minimum wage and businesses are forced to raise costs or cut employees. Sometimes, they go out of business altogether. It’s a tale as old as time. Like most ideas from the left, the arguments are made based on feeling and emotions rather than logic or data.
This week, another example came to light that shows yet again how lost liberals are on this issue.
From The Daily Wire:
On Monday, the national restaurant chain Red Robin announced it would eliminate busboys at all of its 570 restaurants, as the company expects it will save $8 million in 2018 by doing so. Red Robin’s chief financial officer Guy Constant told attendees at the ICR retail conference, “We need to do that to address the labor increases we’ve seen.”
Michael Saltsman, director of the Employment Policies Institute (EPI), told FOX Business, “I read that as minimum wage. Somebody like Red Robin, which has a lot of exposure in western states [where the minimum wage is rising faster] … this is sort of a burger and beer chain. If they can’t pass those increases off in higher prices … they have to find a way to do more with less.”
851Franchise.com editor-in-chief Nick Powills added, “From a business standpoint, [Red Robin made a] very smart move. From an employee standpoint, you just cut out $8 million worth of labor. The interesting thing about the minimum wage hike is that those that made the decisions to do it, did it on behalf of the employee … when intentions are good, and you can’t appease everybody, someone is going to eventually be on the short [end of the] stick.”
This shouldn’t surprise anyone. It’s par for the course. These employees don’t have a job any more thanks to a liberal movement that pretends to care about helping those employees. It’s ridiculous.
Minimum wage laws hurt low skilled workers like busboys. They don’t help. It’s simple economics.
From Heritage Foundation:
Supporters of raising the minimum wage say that it is an important way to help disadvantaged workers get ahead. Though the majority of minimum wage workers are teenagers or young adults under the age of 25, the case for raising the minimum wage focuses on how it will help low-income adults who are struggling to get by. But businesses change their mix of workers when the minimum wage rises. If they must pay higher wages, companies hire more highly-skilled and productive workers. Poor, low-skill workers thus lose out.
It’s really a shame that ideology comes before logic on the left today.
In fact, people like Jerry Brown openly admit that minimum wage laws don’t make economic sense.
From Sacramento Bee:
Brown, traveling to the state’s largest media market to sign the landmark bill, remained hesitant about the economic effect of raising the minimum wage, saying, “Economically, minimum wages may not make sense.”
But he said work is “not just an economic equation,” calling labor “part of living in a moral community.”
And yet, they do it anyway.
[Note: This post was written by Andrew Mark Miller]