Posted on 04/09/2024 4:22:35 AM PDT by grundle
A Fosters Freeze outlet in Lemoore shut down on Monday — the same day the new minimum wage kicked in — and its workers are now out of a job.
Monica Navarro, former assistant general manager of that Fosters Freeze location, told Fox Business that she and her former colleagues would prefer the old wage over being unemployed.
“From the people that I spoke to, my employees, we would have rather stayed at the wage that we did have before, just because now we don't have a job,” she said. She also observed the impacts of the new minimum wage on those fortunate enough to keep their jobs, stating, “Those who are still working in the areas around us that went up to $20 an hour, they got their hours severely cut and it's a lot less people working on shifts, so their jobs got a lot more difficult.”
(Excerpt) Read more at moneywise.com ...
Where does the business go now for that product?
Demand is not static, people will do without or substitute less expensive & available options. That’s what people do in a recession, consume less.
“who is doing her job now?”
Minimum wages rise, technology improves.
It does not take a rocket scientist to figure out that robots will be doing her job soon.
Robot—capital cost and maintenance cost but....
No wages
No health insurance
No disability insurance
No social security, Medicare taxes on employer
No lawsuits
Cold equations.
In economics it is called the “substitution effect”.
They are reasonable substitutes for almost any good or service.
If what I’m seeing in my region is any indication, the previous customers are most likely to shop and eat more meals at home. Eating out has become a luxury for more and more people. I don’t think there’s a single restaurant within ten miles of my home that is doing more business today than it did ten years ago … and that’s even with a half-dozen places closing permanently in the last two years — AFTER they survived the COVID lockdowns.
Well...that’s the oncoming socialism, where the decent citizens get nothing and the politicians continue to get themselves rich! ....imho
If you read the article, you would see that the location was shut down - so no one is doing those jobs anymore because they no longer exist.
“Perhaps this position needed eliminating anyway.”
The example my economics professor used was a contractor installing a split rail fence.
He can hire ten low-skilled guys for $10/hr to do it all by hand - let’s say that takes 7.5 hours for a total labor cost of $750.
Or, he can hire two $100/hr machine operators, one with a post-hole digger and one with a front end loader - plus two $25/hr guys to guide the posts and rails in, pack and fill, etc.. With this option, it only takes 3 hours, for the same total cost of $750.
Raising the minimum wage does not make the job impossible, but it does cut the low skilled worker out of a job, and it has a few other negative consequences as well:
1) A variety of wage levels provides an opportunity for training and advancement. Workers can enter the work force at a low wage, learn a skill and prove their worth so as to advance to a higher skill/wage level.
2) A variety of skill/wage levels is more flexible and predictable for the contractor, and can thus reduce the risk of losing money from costly machine work-stoppage. A $100/hr machine being idle for an hour can cost the contractor his entire profit margin, whereas low skilled workers can usually be put to use elsewhere.
I don’t see how trade policy has anything to do with this.
She will continue to vote for Democrats because they offer her ‘hope’. They will blame the Republicans for her sad situation and she will believe them. She will vote for Democrats again and again and again, expecting her problems to be solved.......
Einstein had a word for this....................
The minimum wage is always $0.
Hey Monica.....how do you LOVE your Gov. Newsome now?? STOP VOTING FOR DEMOCRATS!!
That area of Califonia down by Fresno pretty conservative, who knows if she voted democrat.
Supported at times by the US Chamber of Commerce (at least it seems that way). The CofC supported Oberlin college instead of Gibson Bakery.
>
The government should not have the authority or legal right to set any minimum wage standards.
It is pure socialist wealth redistribution.
It holds the hard workers and top performers down and boosts the slackers and low performers up
>
They DON’T (REF: Contracts Clause, 5th A.) But, when did the Constitution EVER matter to govt??
The store is closed entirely.
“ Simple fix: Bake bread on premise, and be exempted from the $20/hr crap.”
Maybe an “EZ Bake oven or a waffle iron would be enough?
Stupid carve out exemption for Panera Bread (huge Newsome donor).
California, a place where stupidity reigns!
“...EZ Bake oven...”
LOL, I remember those things; my sister had one.
It doesn’t. I think you don’t understand what happened.
—->> Robot—capital cost and maintenance cost but....
They will quickly tax robots
but NOW you are eligible for BENEFITS!
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