California’s minimum wage is increasing 25% in April, to $20 an hour. Employers are going to raise prices, but that can only be done so much before customers decide to eat at home. That point, it appears, has been reached. So now the layoffs begin. Pizza Hut just laid off 1,200 workers in California. Fatburger has implemented a hiring freeze. Both chains have eliminated paid time off.
It’s almost like those of us who understand economics have been warning of this for years.
15 Comments
Grumpy51 · January 17, 2024 at 7:49 am
Life is hard.
It’s harder if you’re stupid.
Attributed to John Wayne
Univ of Saigon 68 · January 17, 2024 at 8:02 am
The first law of economics: scarcity is real; the first law of politics: ignore the first law of economics.
SiG · January 17, 2024 at 9:48 am
I stopped arguing against minimum wage laws because (1) arguing against them is always right but (2) arguing against them never stops them. The people who demand these laws are hurting themselves but they still keep plunging that steel fork into that wall outlet.
Think about all the people they’re crushing here. Think about all the people who went and got some sort of training so they could make more than minimum, maybe going to school while working full time to make like $12 or $15/hour when min wage was $7. Now that effort to better themselves has been made worthless. They make min wage or a few cents more.
Its just Boris · January 17, 2024 at 9:48 am
The true minimum wage is zero.
Once one is set, there’s always the question of, why stop there? Why not set it at $100 an hour?
We are not living in a post-scarcity world, let alone society, yet; and as systems falter it’s looking increasingly like we won’t get there.
Danny · January 17, 2024 at 11:36 am
Hmmm … everyone knows when the 7.5 magnitude quake hits the Golden State, they’ll be well and truly screwed. Maybe that’s why they’re all off the rails out there.
Steve · January 17, 2024 at 12:11 pm
Took my in-laws out to eat over Christmas. Middle of fly-over, but in a region that this living wage nonsense has taken root.
The 2 burrito platter my wife chose $29. The steak fajita I chose, $38. The food wasn’t all that good. Our hometown hole in the wall is much better at under a third the price.
My wife heard from her folks that restaurant is now closing doors. There’s only a handful of non-fast food left, and the powers that be are harrumphing that something must be done. Failure to understand basic economics has consequences.
Dirty Dingus McGee · January 17, 2024 at 2:54 pm
And now the welfare ranks grow, as designed. Depend on Uncle Sugar for your daily existence. We’ll just tax the “rich” more to cover the costs. Those evil bastids can afford to pay more. Right up until they decide “screw this, I’m done”.
I recently had to travel to Connecticut for a business trip. I stopped at a Wendys for a quick burger lunch. A “Daves single” combo meal was just short of $13. American money, not Canadian or Mexican. Next morning I went to a McDonald’s for a coffee and saw that a bacon egg and cheese biscuit was almost $5. And both places looked to be running with a skeleton crew, only 6-7 folks working.It’s just as bad at “sit down” restaurants. A friends wife is the manager at a local franchise of a “casual dining” restaurant. Can’t hire decent help, can’t afford to staff the place like it should be, and see’s a noticeable drop off in traffic, even in this post scamdemic time. She is thinking that at the current pace, they will close that location within a year.
Cederq · January 17, 2024 at 3:35 pm
I stopped going to any place for a fast food burger here in Oregon, minimum wage is $15.00 an hour and they seem to be hiring idiots for that kind of money, at that wage and price of my burger, it better be looking like the ads display them! The politicians and liberal laureates have priced cheap meals out of us on limited incomes, mine due to MS and they can’t seem to understand most of us started with a hell of a lot less per hour (mine was $1.25/hr) and we realized it was a no skill, no talent training wage as it were, not a living wage.
jimmyPx · January 17, 2024 at 3:51 pm
Have you all noticed that as the minimum wage has gone up, the service in fast food restaurants has gotten WORSE ?
The employees are stupid, don’t care, can’t get your order right, refuse to check orders before they go out and just have a bad attitude yet are making $15+/hour.
Maybe it’s a generational thing but that crap wouldn’t have flown for 1 second back when I was a teen in the 1980s making minimum wage of $3.35/hour.
TB · January 17, 2024 at 11:27 pm
Service has become terrible indeed. Traveling tonight with my daughter, stopped at McD’s to get a Happy Meal. They forgot the straw for the milk, sauce for the nuggs, and the apple slices. That’s literally half of the stuff that goes in the box. No napkins either.
Grumpy51 · January 18, 2024 at 10:48 pm
Channeling Joe Pesci in Lethal Weapon – “NEVER go through the drive-through. Why?? Cause they fxxx you in the drive-through. You’re 3 miles down the road before you find out they fxxx you in the drive-through.”
Craig · January 17, 2024 at 7:06 pm
When I was a busboy in 1984-86 minimum wage was 3.35(iirc) we all realized the real money was from tips from good service. With the minimum wage going to 20/hr. no tip necessary which leads to poor service, leading to unhappy patrons which leads to restaurants closing. Before the above job I worked at a Winchells Donuts for the same minimum wage never thinking it should be a long time gig. I quit the donut shop after getting robbed at gun point and pistol whipped and having my car stolen.
Grumpy58 · January 17, 2024 at 10:08 pm
Raising the minimum wage also causes wage compression.
I work in medicine. Medicare pays a set amount for seeing a patient. Doesn’t matter if it’s a new doc or one with 30 years experience. And that reimbursement goes down every year (in terms of real dollars).
The local FD Paramedics now make just under what I make…… time to move back to the trucks…..
James · January 17, 2024 at 10:33 pm
i stopped eating out a few years ago.
Aesop · January 19, 2024 at 2:38 pm
It’s not just what employers (and passed on 100% to consumers) are paying, it’s what they’re getting for their employment dollar: Utter retards.
https://raconteurreport.blogspot.com/2024/01/an-open-letter-to-dayton-hudson-corp-re.html
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