Seattle, which already as a $19.97 per hour minimum wage, passed a law mandating delivery driver minimum wage. Using a complicated formula, the law dictated that delivery drivers receive a living wage. The law caused delivery companies to pass the added costs on to the consumer in the form of extra delivery fees. The next thing you know, people in the Seattle area had to contend with $26 coffees and $32 sandwiches, with taxes and the neew delivery fees comprising nearly 30 percent of the total bill.
The free market responded, as it always does. They don’t call it the LAW of supply and demand for nothing.
Seattle residents started deleting their delivery apps from their phones in response to the spiking exorbitant delivery prices. Uber Eats experienced a 30-percent decline in order volume in the city, while DoorDash reported 30,000 fewer orders within just the first two weeks of the ordinance taking effect.
As a result, the income for drivers actually went down. A driver who made $931 in a week this time last year saw his earnings drop by half to $464.81. Small restaurants are hurting, delivery drivers are hurting, and people who depend on food deliveries are not able to get food because drivers are quitting in droves. So do the socialists in charge admit that they were wrong, and change the law? Of course not.
A spokesman for the mayor noted that “should the data show there have been unintended impacts for workers and small businesses, we are always open to making improvements”—a criterion which has clearly been met already—but nonetheless clarified that the mayor still “stands strongly in support” of the minimum wage ordinance.
Meanwhile, the president of the City Council claims she is “very worried” about the ordinance’s impacts so far—and even argues that “it’s not the role of policymakers to regulate the profit margins of companies”—before going on to say “I’m not going to redo the whole legislation.”
The law required that the city hire more bureaucrats to administer the law, and that is the point of most socialist laws- to increase the size and power of government and its officials. Just remember, the reason why communism and socialism fails is because the right people haven’t been in charge, and true communism hasn’t been tried yet.