Posted on 04/06/2017 7:07:24 AM PDT by Oldeconomybuyer
Evidence has emerged of an economic dark side to San Diego’s decision last year to vault over the state minimum wage — it may have already destroyed thousands of jobs for low-wage workers even as higher pay helps tens of thousands of others.
Consider the restaurant industry, for example, which economists study because it relies on low-wage workers.
Amid an abrupt slowdown in growth, nearly 4,000 food-service jobs may have been cut or not created throughout San Diego County from the beginning of 2016 through February of this year.
“This was at a time when both overall economies performed similarly well,” Reaser said. “If job growth in the restaurant sector had just kept pace with the state's performance … the industry could have created 5,200 jobs instead of the 1,300 that took place.” Last month growth turned negative, as the sector actually lost jobs.
For business owners, academic discussions about trade-offs are all too real.
“Yes, we have raised menu prices. Yes, we’re going to raise them again,” said Jim Phillips, general manager of Studio Diner in Kearny Mesa, who has nonetheless cut staffing from 71 to 65 employees and needs to shed seven more.
Then there’s Mike Pasulka, a co-owner of Player’s Sports Grill who has recently assigned himself four shifts a week as bartender to save labor costs.
“It’s real. It’s like balancing a scale; when one side goes up the other side goes down,” Pasulka said.
“When food prices go up in restaurants, people don’t go out as much,” he said. “Restaurants have cut back on their hours, and we are paring staff.”
Such losses typically represent the tip of the employment iceberg. When restaurants cut back, similar reductions are likely in other industries that provide entry-level jobs in construction, retail, call centers and other industries.
(Excerpt) Read more at sandiegouniontribune.com ...
And when the Dems want to buy votes by raising the minimum wage to $25/hr, we’ll hear again that “there is no evidence that raising the minimum wage causes job loss.” It happens every time.
Smart Libtards (maybe a dozen all together) use this to drive out the dumb D voters.
And another group of potential workers will find out the government pays more to not work than they can make at a minimum-wage job. Liberal groups will do everything they can to get these people gov’t benefits and minimize bad PR.
Some will do what it takes to get better than minimum wage. Others will decide their job is to vote D every election.
Supply and Demand. Not just a good idea. It’s the Law!
The unemployment rate there is 4.2%,I genuinely feel sympathy for Employers paying this much.But I don’t think it is killing employment there just there.
It might “marginalize” people who are already technically unemployable.
Restaurants should have to post the minimum wage they are paying so patrons can adjust their tips accordingly.
The rising minimum wage is one of the factors in the growth of the permanently unemployed, because it hurts most those with the least skill, least education and least experience; in affect pricing them out of work.
Liberals don’t give a dam, raising the minimum wage makes them feel good, because the markets have taught them that EVERY JOB should be a job a single-job family-head of household can support the family with. They refuse to acknowledge, that in all history that has never been the case. Certain classes of jobs have always existed for youth, for little-education first-time job holders, for part-timers who only need/want a part-time job, for second/additional jobs for supplementing household income, for still-at-home-in-school single young adults, and for back-to-work semi-retired supplementing retirement income AND NOT for persons who single-job family-head-of-household.
That is not to deny that some individuals for whom many jobs have not traditionally been intended cannot in some situations need them, and take them. However, business economics should not be based on the exceptions.
“May have...” may have yet 4,000 people lost heir jobs and we read stories from the owners who are laying people off who cite the reasons and the writer say “May have...”
BTW Do kids raise money mowing lawns anymore?
Or has the state blocked that along with selling lemonade?
Raise minimum wage and the price of a loaf of bread goes up just as much or more. The demwits never learn. How does that libtard explain why my purchasing power has decreased?
A Sonic brown bag special (2 burgers, 2 fries, 2 drinks) used to be $5.49. Now days, that won't buy a burger by itself. But, hey, burger flippers are getting $15/hr and that's all that matters.
Kids are too lazy to mow yards these days. Besides the noise from the mower would drown out their phone’s ring tones and you can’t have that.
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