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Of course. This is what many people don't realize. Businesses will simply reduce their workforce if they are forced to comply with a $15 hour minimum wage.
Very true, legislation can impose whatever demands they want on businesses, however businesses will react in a way to protect their own interests. The other side of the argument was always that if you keep raising the minimum rate, employers will hire less people or limit the size of their buisness.
A rise to $15 would be a huge hit to restaurants, who often operate under an hourly minimum far below standard MW because the workers make much of their income from tips.
But then, tipping is an idiotic, out of control system belonging to another age of business and service. Restaurants should pay a market wage, discourage or forbid tipping and set prices like every other business as as consequence.
This is another example of why you can't arbitrarily change one element in a complex economic system. A high minimum wage for service workers should have been accompanied by other changes.
Nothing wrong with the rest of what you're saying, but why should the bolded happen as well?
If restaurants are forced to pay tipped employees a market wage, it will result in increased prices to the consumer. If a diner knows their server is being payed a market wage and that they are paying an increased price for the meal and still wants to tip said server, why shouldn't they be able to?
The CBO (congressional budget office) already said that this is exactly what would happen something like 4-5 years ago when these proposals started floating about. It was non-partisan.
Heck, one of my stepkids works part time for Target and they increased all their pay to $12/hr. with some sort of phase in and they said that they started firing the low-end workers and using fewer "good workers".
The other thought is that those businesses will start hiring more "off the books" labor that they don't have to pay as much.
I'm not a supporter of the R ideals such as pro life, discrimination against gays etc
Just a clarification:
The Republican Platform is against taxpayer funding of elective abortions. That is quite different from what you mention above.
The Republican Platform does not support discrimination against gays. Just the opposite: the platform proactively says
Quote:
"We affirm — as did the Declaration of Independence: that all are created equal, endowed by their Creator with inalienable rights of life, liberty, and the pursuit of happiness."
The Republican Platform rejects the idea that certain Activist Judges can overrule the States and The People with respect to the definition of marriage. The People and their Elected Representatives -- not certain un-elected judges -- get to decide what marriage is and what it isn't. That is quite different from what you mention above.
The Republican Platform is against taxpayer funding of elective abortions. That is quite different from what you mention above.
The Republican Platform does not support discrimination against gays. Just the opposite: the platform proactively says
The Republican Platform rejects the idea that certain Activist Judges can overrule the States and The People with respect to the definition of marriage. The People and their Elected Representatives -- not certain un-elected judges -- get to decide what marriage is and what it isn't. That is quite different from what you mention above.
That sounds good and all, but ideology is very different than the real world. Hell the current VP supported use of federal money to change people's sexual orientation. His wife teaches at a school that bans gays.
Trump is probably the least homophobic one. His responses are downright hilarious when asked about the bathroom bills. "Was it ever a problem?" Lol.
....Jon Bloostein, the operator of six New York City restaurants with 50 to 110 workers on the payroll at each, said the wage hike is “an immense cost” for his business to shoulder.
“We lost control of our largest controllable expense,” he told CBS News. “So in order to live with that and stay in business, we’re cutting hours.”
Bloostein said he has increased the prices on the restaurant menu and staggered employee start times to cut down on costs....
Wow. Shocking.
Breitbart is a partisan hack site and not a source of news.
Do you have a source for this from a legitimate news organization? It might be true, but if it is, it will be reported by legitimate news organizations.
The $2 increase applies to restaurants that have 11 or more workers. Most (not all) NYC restaurants are cutting workers' hours to stay afloat. Only some will be firing workers. Some will be increasing menu prices, too.
This is forcing restaurants to be more efficient. One said he won't be using the hosts/hostesses during lunch on light days. That sounds efficient, since they are not really needed.
So they will become more efficient and raise menu prices a bit. If that's what it takes for people to be paid decently, then that is the right thing to do.
This was a minimum wage hike plan that started years ago. These restaurants knew this was coming. I think this was the goal...$15/hr.
And...workers are customers, too. Workers who get paid more, spend more. NYC has hiked the min. wage several times in the last few years. It didn't negatively affect its economy.
My philosophy is...if you can't afford to pay employees decently, then maybe your business isn't viable.
I am a fourth generation restaurateur here and can give you some input here.
When you force restaurants to pay $15 an hour to servers, you will start seeing all those great mom and pops go out of business.
You'll be left with a bunch of Outback Steakhouses, TGI Fridays, and Olive Gardens.
The best run restaurants in the world only clear about $0.05 on the dollar.
Profit margins for restaurants are tiny.
Who loses out on this the most? The servers. Believe me, servers do not want this change.
Left leaning politicians in DC don't care about real world consquences. Their objective is that there is an evil thing out there (capitalism) and they must be paid 6 figures to defeat it. Then when those resturnat servers get fired, the left will then propose tax payer funded social programs to help them. Forgetting the fact tht $15 minimal wage hikes are the reason they're unemployed to begin with.
At the end of the day, as you stated, we'll eventually see a chain resturant on every block.
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