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The Liberal Narrative And The Minimum Wage

"You've got to watch out because at some point you run the risk of harming the people you set out to help."

Proponents of a federal $15 minimum wage like progressive Senator Bernie Sanders argue that it would lift millions of workers out of poverty. But the former CEO of McDonald’s just warned that artificially spiking the cost of labor could hasten the drive toward automation and instead leave many workers replaced with machines.

“They're going to force the cost of labor up, which means it's going to force management to find alternatives, which means they're going to lose jobs,” Ed Rensi told Fox Business.

-Brad Polumbo Go To Site

When Seattle officials voted three years ago to incrementally boost the city's minimum wage up to $15 an hour, they'd hoped to improve the lives of low-income workers. Yet according to a major new study that could force economists to reassess past research on the issue, the hike has had the opposite effect. -Max Ehrenfreund, Washington Post Go To Site

Labor Secretary Perez was asked by a reporter about a study done by the American Enterprise Institute on the District of Columbia's minimum wage hike. D.C. raised its minimum wage to $10.50 an hour last July. According to AEI, following the mandatory wage increase, D.C. saw the loss of 1,400 jobs in the restaurant industry in six months, according to the Bureau of Labor Statistics.

  This was the biggest loss of jobs from the industry in D.C. for any comparable period since 2001. -Mark Hemingway Go To Site

The inexorable reality of the bottom line has produced howls of outrage from Starbucks employees who have seen their hours cut in response to increases in the minimum wage...

  In fact, things are so bad that Jaime Prater, a Starbucks employee, created an online petition that has more than 9,000 signatures in an effort to get the Lords of Starbucks to hear what life has become for the baristas in the trenches. Go To Site

My opposition to minimum wage increases comes as a direct result of my own experience searching for jobs as a new resident of Seattle, Washington, a city that currently has one of the highest minimum wages in the nation... Yet seven weeks and more than 70 job applications later, I still have yet to land a part-time, minimum wage job. -Mitch Hall Go To Site

Liberal, Government, Incompetence, Financial, Narrative, Oops, Economy, Jobs

More than six months after the $15 minimum wage went into effect in New York City, business leaders and owners say the increased labor costs have forced them to cut staff, eliminate work shifts and raise prices. Many business owners said these changes were unintended consequences of the new minimum wage, which took effect at the beginning of the year...

  “What it really forces you to do is make sure that nobody works more than 40 hours,” Ms. Koteen said. “You can only cut back so many people before the service starts to suffer.”

  Ms. Koteen said she shelved plans to move her restaurant to a larger location. That would require her to hire more staff, and she isn’t willing to take the risk with the unpredictability of her business. “You would just have no choice but to cut people at the bottom,” she said.

Democrat, Liberal, Government, Incompetence, Financial, Oops, Greed, Jobs

A once-growing industry is contracting, according to an online survey conducted by the New York City Hospitality Alliance, an association representing restaurants in the city.

  Last year, “full-service restaurants recorded a 1.6 percent job loss, which is the first recorded annual loss in two decades,” said Andrew Rigie, executive director of the trade group.

  The survey also said about a third of respondents will eliminate jobs and most will raise prices this year because of the new $15-an-hour law backed by Gov. Andrew Cuomo and other state officials, which took effect on Dec. 31, 2018.

Liberal, Financial, Narrative, Oops, Economy, Jobs

In response to public pressure and increasing scrutiny over the pay of its warehouse workers, Amazon enacted a $15 minimum wage for all its employees on 1 November, including workers at grocery chain Whole Foods, which it purchased in 2017...

  But since the wage increase, Whole Food employees have told the Guardian that they have experienced widespread cuts that have reduced schedule shifts across many stores, often negating wage gains for employees. “My hours went from 30 to 20 a week,” said one Whole Foods employee in Illinois...

  “We just have to work faster to meet the same goals in less time,” the worker said.

Liberal, Financial, Narrative, Oops, Economy, Jobs

The legal minimum wage for New York City employers with 11 or more workers rose more than 15 percent on Dec. 31, 2018, to $15 per hour from $13, giving fast-food, retail and other employees a bump in pay. But some New York City restaurant owners say the latest minimum wage hike is forcing them to cut workers' hours just to stay afloat...

  Jon Bloostein operates six New York City restaurants that employ between 50 and 110 people each. The owner of Heartland Brewery and Houston Hall, Bloostein said the effect of the higher minimum wage on payroll across locations represents "an immense cost" to his business.

  "We lost control of our largest controllable expense," he told CBS MoneyWatch. "So in order to live with that and stay in business, we're cutting hours."

There’s a virtual consensus among economists that the minimum wage is an idea whose time has passed. Raising the minimum wage by a substantial amount would price working poor people out of the job market. Most important, it would increase unemployment: Raise the legal minimum price of labor above the productivity of the least skilled workers and fewer will be hired....

  The idea of using a minimum wage to overcome poverty is old, honorable – and fundamentally flawed. It’s time to put this hoary debate behind us, and find a better way to improve the lives of people who work very hard for very little. -New York Times editorial Go To Site

Liberal, Financial, Narrative, Oops, Academia, Economy

Temple of Zeus, a popular on-campus cafe, has increased some of its prices by roughly a quarter after New York State raised the minimum wage. The items affected include coffee, soup and some snacks, according to Keith Mercovich, the Temple of Zeus manager.

  Alejandro Parra, a Zeus staff member, explained that this change went into effect after the New York minimum wage went up to $10.40 beginning Dec. 31, 2017.

New York Times: Poor Priced Out Of Job Market By Min Wage...


 Anyone working in America surely deserves a better living standard than can be managed on $3.35 an hour. But there's a virtual consensus among economists that the minimum wage is an idea whose time has passed.

 Raising the minimum wage by a substantial amount would price working poor people out of the job market.

New Rules And Regulations...


"The state and city governments have totally failed us, whether it’s the outrageously high minimum wage or the nonstop oversight from government agencies [that] like to impose new rules and regulations on what seems like a daily basis."

Liberal, Government, Incompetence, Oops, Economy, Regulation, Jobs

The Bank of Canada estimates there will be about 60,000 fewer jobs by 2019 due to the increases in minimum wages across the country, but that labour income will be higher due to the increases.

  In examining the impact of the wage increases, the report estimated that the consumer price index could be boosted by about 0.1 percentage points on average and real gross domestic product could be cut by 0.1 per cent by early 2019.

Liberal, Election, Incompetence, Character, Financial, Narrative, Oops, Crazy, Demagoguery, Academia, Economy, Jobs

In January 2016, Seattle’s minimum wage jumped from $11 an hour to $13 for large employers, the second big increase in less than a year. New research released Monday by a team of economists at the University of Washington suggests the wage hike may have come at a significant cost: The increase led to steep declines in employment for low-wage workers, and a drop in hours for those who kept their jobs.

  Crucially, the negative impact of lost jobs and hours more than offset the benefits of higher wages — on average, low-wage workers earned $125 per month less because of the higher wage, a small but significant decline.


Restaurants tend to operate on famously low profit margins, typically 2 to 6 percent. So a 40 percent mandatory wage increase over a two-year period is not trivial.

In response to the minimum wage hikes, New York City restaurants did what businesses tend to do when labor costs rise: they increased prices and reduced labor staff and hours.


  You see, as previously noted, the minimum wage isn’t meant to be a living wage. It’s a starting wage. It’s where you start out in the workforce.

   If you’re married and raising a family of four on minimum wage, you’ve clearly screwed up somewhere along the way. You don’t get to pretend to be the victim because you’re either too bad a worker to get better pay or too stupid to seek it out.

We Axed 500 Employees

Because of Higher Minimum Wage

Liberal, Incompetence, Narrative, Oops, Economy, Greed

Wendy's plans to install self-ordering kiosks in 1,000 of its stores — about 16 percent of its locations — by the end of the year. The Dublin-based burger giant started offering kiosks last year, and demand for the technology has been high from both customers and franchise owners... A typical store would get three kiosks for about $15,000. Trimm estimated the payback on those machines would be less than two years, thanks to labor savings and increased sales.

“If a minimum wage of $8 is better than one of $5, why skimp? Why not make the minimum wage $10, or $20, or $30?” Passing minimum wage laws is relatively easy. If eliminating poverty is that easy, why not go all the way? Why be so miserly? It’s not your money you’re spending. Go big or go home! -Ron Ross Go To Site

Liberal, Financial, Narrative, Oops, Economy

Imagine going out to eat and never interacting with a server or cashier. You can do that at a new restaurant in New York City. Eatsa is an automated restaurant in Midtown Manhattan. It opened as an East Coast anchor for a small chain that started in California. There are no cashiers and you order on an iPad or your phone. The meal appears in a little locker. Customers tap to open the door for their meal.

Liberal, Incompetence, Financial, Narrative, Oops, Regulation, Jobs

Wendy’s (WEN) said that self-service ordering kiosks will be made available across its 6,000-plus restaurants in the second half of the year as minimum wage hikes and a tight labor market push up wages. It will be up to franchisees whether to deploy the labor-saving technology, but Wendy’s President Todd Penegor did note that some franchise locations have been raising prices to offset wage hikes.

Liberal, Government, Incompetence, Financial, Narrative, Oops, Academia, Economy, Regulation, Jobs

The $15 minimum wage hike in California has sent financially troubled UC Berkeley into decision making mode, and "the people who clean buildings, who work in food services or health clinics,” says Todd Stenhouse, will be the ones without a job...

  Berkeley employs about 8,500 staffers, from custodians to administrators. Departments on campus were reportedly also told to reduce their budgets by 10 percent in whatever way they wish. Some staff members in at least one area, residential student services, were told by managers two weeks ago that they should prepare to be laid off.

Democrat, Liberal, Government, Incompetence, Financial, Oops, Economy, Regulation

Los Angeles was once the epicenter of apparel manufacturing, attracting buyers from across the world to its clothing factories, sample rooms and design studios... Now, Los Angeles firms are facing another big hurdle — California's minimum wage hitting $15 an hour by 2022 — which could spur more garment makers to exit the state. Last week American Apparel, the biggest clothing maker in Los Angeles, said it might outsource the making of some garments to another manufacturer in the U.S., and wiped out about 500 local jobs.

Los Angeles County used to have more than 5,000 apparel factories; today, my company is one of roughly 2,000 — and many (e.g. American Apparel) are looking for a way out. One Los Angeles Times headline, quoting a California State University economist, warned that “the exodus has begun."

  The biggest reason is the minimum wage, which will rise to $15 by 2021 in the county and by 2022 statewide. -Houman Salem Go To Site

Liberal, Narrative, Oops, Economy

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.... The measure will not come without a cost. According to the state Department of Finance, a $15 minimum would cost California about $4 billion a year.

Government, Incompetence, Financial, Oops

As Oregon lawmakers celebrated passage of a historic minimum wage hike last week, leaders at each of the seven public universities were pulling out their calculators... "This is a big hit," Di Saunders, Oregon Institute of Technology's associate vice president of communications, said in an email...

  Oregon's new minimum could put more money in some students' pockets, but it will more likely lead administrations to either cut back on the number of students they hire or the number of hours they're allowed to work. Officials will likely turn to another frequent source of revenue to make up the difference: tuition dollars.

Government, Incompetence, Financial, Oops, Greed, Regulation

Seattle’s $15 minimum wage law is supposed to lift workers out of poverty and move them off public assistance. But there may be a hitch in the plan. Evidence is surfacing that some workers are asking their bosses for fewer hours as their wages rise – in a bid to keep overall income down so they don’t lose public subsidies for things like food, child care and rent. Full Life Care, a home nursing nonprofit, told KIRO-TV in Seattle that several workers want to work less.

"You've got to watch out because at some point you run the risk of harming the people you set out to help."

Liberal, Incompetence, Oops, Economy, Jobs

San Francisco's minimum wage is currently $11.05 an hour. By July of 2018, the minimum wage in San Francisco will be $15 an hour. That increase is forcing Borderlands Bookstore to write its last chapter now... Borderlands was turning a small profit, about $3,000 last year. Then voters approved a hike in the minimum wage, a gradual rise from $10.75 up to $15 an hour. "And by 2018 we'll be losing about $25,000 a year," he said.

Government, Incompetence, Financial, Oops

The CNMI experienced one of the most successful private sector economic expansions in Pacific island history between 1980 and 2004. Its early economic success was attributable to its own initiatives and the development provisions of the Covenant. The CNMI is now in the throes of a serious economic depression, which shows no sign of abating or recovering even in the distant future. This depression is due to the lifting of quotas on garment exports to the US which rendered the CNMI’s largest employer, the garment industry, unfeasible. This was exacerbated by the imposition of federal minimum wage and immigration laws on the CNMI.

As good a year as 2015 was for independent booksellers, [owner Gary] Cornell said his store’s business grew by only 1 percent…Cornell added that turning a profit would be even tougher with Berkeley’s recent minimum wage increase, to $11 an hour” Cornell said, “It means my expenses would go up 50 percent over the next five years, and to be honest, that just wasn’t in the cards.” -John McMurtrie Go To Site

A company called Momentum Machines has built a robot that could radically change the fast-food industry and have some line cooks looking for new jobs.

  The company's robot can "slice toppings like tomatoes and pickles immediately before it places the slice onto your burger, giving you the freshest burger possible." The robot is "more consistent, more sanitary, and can produce ~360 hamburgers per hour." That's one burger every 10 seconds. Go To Site