MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘minimum wage’

EconomicPolicyJournal.com: The Minimum Wage Kills Again: Pizza Hut Closing As Many as 500 Dine-In Restaurants

Posted by M. C. on August 8, 2019

https://www.economicpolicyjournal.com/2019/08/the-minimum-wage-kills-again-pizza-hut.html

Pizza Hut is closing as many as 500 dine-in restaurants.

They are moving to a less labor-intensive format.

“We are leaning in to accelerate the transition of our Pizza Hut U.S. asset base to truly modern delivery/carryout assets,” said David W. Gibbs, president, chief operating officer and chief financial officer for Yum! Brands, in an Aug. 1 earnings call.

RW

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EconomicPolicyJournal.com: New York City’s $15 Minimum Wage Is Now Officially a Disaster

Posted by M. C. on August 8, 2019

https://www.economicpolicyjournal.com/2019/08/new-york-citys-15-minimum-wage-is-now.html

By Jake Dima

New York City’s $15 minimum wage, which began to take effect Dec. 31, 2018, was meant to bolster earnings and quality of life, but for a lot of residents, it’s doing the opposite.

Democratic New York Gov. Andrew Cuomo signed legislation in 2016 to increase the New York York State’s minimum wage to $15.00/hr. The lowest minimum wage in NY at the time was $9.60. NYC’s “big employers” (11 or more employees) were the first to be forced to increase minimum wage pay toward the end of 2018. The rest of NYC’s smaller-scale businesses won’t have to pay up until December of 2019, according to data on Cuomo’s website.

Cuomo claims to have created the bill with “the needs of workers and businesses alike” in mind, but a lot of business owners in the boroughs beg to differ. They say the extra money comes with an unforeseen cost: higher good prices, fewer working hours and layoffs.

 

“Many people working in the restaurant industry wanted to work overtime hours, but due to the increase, many restaurants have cut back or totally eliminated any overtime work,” Andrew Riggie, executive director of the New York City Hospitality Alliance, told Fox News. “There’s only so much consumers are willing to pay for a burger or a bowl of pasta.”
Roughly 77 percent of NYC restaurants have slashed employee hours. Thirty-six percent said they had to layoff employees and 90 percent had to increase prices following the minimum wage hike, according to a NYC Hospitality Alliance survey taken just one month after the bill took effect.
“What it really forces you to do is make sure that nobody works more than 40 hours,” Susannah Koteen, owner of Lido Restaurant in Harlem, told Fox News. “You can only cut back so many people before the service starts to suffer.”
NYC restaurants are taking hits from Cuomo’s push, but Washington doesn’t seem to have received the memo. The House passed the Raise The Wage Act in July, which mandated a nation-wide $15 minimum wage. The bill was later blocked by the Senate.
The bill would have effectively doubled the federal minimum wage of $7.25/hr. There is dismal 6 percent support for a nation-wide $15 wage hike among economists, according to Fox News surveys.
Cuomo’s office did not respond to a request for comment from the Daily Caller News Foundation by the time of publishing.
The above originally appeared at the Daily Caller.
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Democratic Presidential Candidate Marianne Williamson Has Whites in Audience Apologize to the Nearest Black

Posted by M. C. on July 28, 2019

https://www.targetliberty.com/2019/07/democratic-presidential-candidate.html?m=1

Starts at 11:10 mark.

Why would every white person in a room have to apologize to blacks if they had nothing to do with slavery, etc.?

In my case, they should be thanking me, since I am in support of freeing anyone in prison on drug charges. I want to stop horrific forced public school education and I want to eliminate the anti-black minimum wage. And I write about this actively.

RW

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Bernie Sanders Shows Us How a Minimum Wage Hike Hurts Workers | Mises Wire

Posted by M. C. on July 24, 2019

In other words, by cutting worker hours, the Sanders campaign elected to provide fewer “services” in the form of campaign activities. In practice, this will likely mean fewer rallies, less travel, or fewer television ads.

Sanders reacted the same way any real world business man would react if he wanted to stay in business.

https://mises.org/wire/bernie-sanders-shows-us-how-minimum-wage-hike-hurts-workers

The Washington Post reported last week that some workers on the Bernie Sanders campaign for calling for a wage increase to a the equivalent of 15 dollars per hour. This, of course, is the hourly rate which Sanders has long pushed for in legislation and on the campaign trail.

But that’s more than what many Sanders employees make per hour.

Many campaign workers are salaried, so the problem lies in the fact that total campaign salaries, when calculated on a per-hour-worked basis, come out to less than $15 per hour. Many employees work around 60 hours per week — as is often typical for full-time workers on a presidential campaign.

As reported by the Des Moines Register,

For a staffer working 40 hours a week, [the typical campaign salary] comes out to about $17 an hour. But 40-hour workweeks on presidential campaigns are rare.

So, some Sanders employees have complained they aren’t earning a “living wage” and have demanded Sanders raise wages immediately. Recognizing the bad optics of the situation, Sanders apparently began looking for a way to raise the per-hour wage.

But how to do it?…

So what is Sanders’s solution?

Not a Raise in Terms of Total Income

According to the Register:

Sanders said the campaign will limit the number of hours staffers work to 42 or 43 each week to ensure they’re making the equivalent of $15 an hour.

It’s not really an increase in total earnings for workers, of course, although workers do now have time to work a second job. Workers won’t be getting any closer to that “living wage” they keep talking about, but by cutting hours for salaried workers, the campaign can claim it raised hourly wages. The move is a masterstroke of cynical public relations.

There are a couple of things we can learn from this.

First of all, we learn that Sanders is not willing to put his money where his mouth is. He’s not willing to use any additional portion of his personal wealth to supplement worker wages.

He is willing to cut back on campaign activities to raise the per-hour wage. In other words, by cutting worker hours, the Sanders campaign elected to provide fewer “services” in the form of campaign activities. In practice, this will likely mean fewer rallies, less travel, or fewer television ads.

The Long Term Effects

Ironically, in the longer term, this may nonetheless turn out to represent a very real pay cut for campaign workers by reducing their employment options moving forward…

The result will be concentration in the industry: smaller and less-capitalized firms will go out of business. Larger firms will gain even more market share. Ultimately, consumers will pay more as a small number of firms can then raise prices more easily. And workers will have fewer options among potential employers — and this will mean wage compression at all levels above the mandated minimum.

Thus, not only will a minimum wage hike mean fewer products and services offered per firm, it may also mean fewer firms providing products and services.

It’s debatable, of course, whether or not the Sanders campaign provides a “service” many people want. But by cutting back on total hours in order to pay higher hourly wages, the Sanders campaign is illustrating what private firms must do whenever government regulators and legislators raise costs: they must become less competitive.

The result is workers working less, firms offering fewer services, and smaller start-ups losing out to bigger competitors.

Unfortunately, Sanders is unlikely to learn anything from the experience.

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EconomicPolicyJournal.com: Bernie Sanders: Minimum Wage Hypocrite

Posted by M. C. on July 21, 2019

Yah, but it is OK for the rest of US.

https://www.economicpolicyjournal.com/2019/07/bernie-sanders-minimum-wage-hypocrite.html

Wherein Bernie discovers the concept of anti-central planning competitive market wage rates.

The Washington Post’s Matea Gold reports:

“For years, Bernie Sanders has traveled the country advocating for a $15 per hour minimum wage. His campaign organizers say they aren’t making that much, and they’re using his words to protest for higher wages.”

Bernie is apparently, lol, justifying the below $15 per hour rate that he is paying by stating he is meeting market competition.

From the Post:

The Sanders campaign late Thursday issued a statement lauding its union contract. “We know our campaign offers wages and benefits competitive with other campaigns, as is shown by the latest fundraising reports,” Shakir said. “Every member of the campaign, from the candidate on down, joined this movement in order to defeat Donald Trump and transform America. Bernie Sanders is the most pro-worker and pro-labor candidate running for president. We have tremendous staff who are working hard. Bernie and I both strongly believe in the sanctity of the collective bargaining process and we will not deviate from our commitment to it.”

RW

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EconomicPolicyJournal.com: The $15 Minimum Wage Will Put Me Out of Business

Posted by M. C. on June 22, 2019

https://www.economicpolicyjournal.com/2019/06/the-15-minimum-wage-will-put-me-out-of.html

By Larry Fox

Want to earn a living wage in Alabama? Try working in a full-service restaurant.
I’m a restaurant franchisee with nine locations throughout Alabama and Florida, and my tipped employees report an hourly wage between $18 and $28, inclusive of base pay and gratuities. That’s more than the living wage for a single adult in Alabama, as calculated by the Massachusetts Institute of Technology.
Unfortunately, some well-meaning members of Congress are trying to pass a minimum-wage bill that would destroy my business model. Tipped employees are currently paid a lower base wage and are legally guaranteed to earn at least the minimum wage with tips included. My employees average roughly three times the relevant minimum wage when tips are accounted for.
But Rep. Terri Sewell (D., Ala.) has introduced one of several bills that would upend this system. Under her bill, employees would have to earn at least the minimum wage before tips. A handful of states—Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington—have adopted this approach. Were it to take effect in Alabama, it would represent as much as a 600% increase in the hourly cost of paying a tipped employee to work for me. In pursuit of a “living wage,” Ms. Sewell could cause my employees to lose their incomes entirely by forcing me to shut down my business.
Despite the widespread popularity of restaurants—sales in Alabama totaled $9 billion last year, according to the National Restaurant Association—the public has surprisingly little understanding of how the business works. At my restaurants we sell a six-piece plate of chicken wings for $10. Customers typically assume we keep $6 or $7 in profit from that sale. In fact, our profit on that six-piece is closer to 50 cents, after accounting for food and labor costs, rent, overhead and other expenses.
My employees actually make more money from a sale than I do. I earn 5% on each customer check, while they earn 20% or more of the check in tip income.
If that doesn’t seem shocking to you, consider this: According to Deloitte’s Restaurant Industry Operations Report, labor costs are about a third of a restaurant’s budget. Now, imagine if a household expense that takes up a third of your income—maybe a mortgage payment or rent—increased by 600%. You’d probably be panicking.
So am I.
Read the rest here.
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Guide to tipping in almost any situation - Business Insider

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EconomicPolicyJournal.com: New York City Restaurant Jobs Are Collapsing in the Face of a Higher Minimum Wage

Posted by M. C. on May 18, 2019

Some tend to tip less when they know wages are up. Oops!

Another central planning success story.

https://www.economicpolicyjournal.com/2019/05/new-york-city-restaurant-jobs-are.html

The New York City minimum wage has been exploding:

….and restaurant jobs in the city have crashed.

In addition to the general minimum wage of $15.00 for large employers,  restaurant employers are required to pay servers and bartenders who generally get a lower hourly base pay but substantial tips, $10 an hour, a 16 percent jump from the previous $8.65 per hour mandate.

Is it any wonder the jobs are disappearing, with restaurants running with less staff?

RW

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Watch “Who Is the Minimum Wage Really Protecting?” on YouTube

Posted by M. C. on May 8, 2019

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EconomicPolicyJournal.com: Fighting The Minimum Wage in Berkeley…

Posted by M. C. on May 8, 2019

https://www.economicpolicyjournal.com/2019/05/fighting-minimum-wage-laws-in-berkeley.html

…via food delivery robots.

Spotted last night in the city of 120,000 Lefties and 250,000 regulations:

RW

1 comment:

  1. Don’t take this one at face value. There is an army of technicians riding orange bicycles that frequently rescue these things, and sometimes even deliver the food manually.

    It’s not a triumph of automation it’s just a malinvestment.

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The future of artificial intelligence

 

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EconomicPolicyJournal.com: Fighting the Minimum Wage: Robots Making Salad Meals for $7.10

Posted by M. C. on April 10, 2019

Minimum Wage – Accelerating robotics engineering

https://www.economicpolicyjournal.com/2019/04/fighting-minimum-wage-robots-making.html

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