Restaurant CEO reveals unexpected effect of minimum wage hikes

[longknife]

Seems it goes beyond laying off workers, increasing costs. It means many lose the opportunity to run or even own their own outlet/franchise.



The days of starting out in the mail room of a Fortune 500 company and winding up as the CEO are essentially gone, but Mr. King brings up a good point. You may not wind up with his job, but a lot of the managers who operate multiple outlets in his company started out as kitchen and dining room workers and rose up through the ranks to be managers who do quite well for themselves. Every time a sudden spike in labor costs sends more of these workers to the unemployment lines or replaces them with robots, that’s one less chance for someone to follow that type of career path.



Full story @ Restaurant CEO reveals unexpected effect of minimum wage hikes - Hot Air

 

[OldLady]

Okay. I hear what you and all the other Republican objectors are saying about minimum wage. But isn't there something wrong with the story when someone works 40 hours per week and does not make enough money to pay rent, let alone buy groceries? The increase is primarily taking place in cities with high costs of living. With the economy the way it is, there are a lot of people in entry level jobs that wouldn't have been 15 years ago. Do you like it that a full-time worker at MacDonalds is low income enough to get foodstamps, heating assistance, etc.? What is wrong with that story?

Supposedly, workers making more money will mean less welfare benefits (like food stamps) and more money in the economy from these workers' increased spending power. No one ever looks into that--maybe it hasn't been long enough to tell.

 

[The Irish Ram]

The small amount of increase in wages at these "entry level" jobs isn't going to get people off of welfare, because the job itself remains entry level. So you make a dollar more an hour. You get 8 bucks more at the end of your day. Which gives you enough to take your family out to dinner...at McDonalds.

Burger flippers don't qualify for CEO positions or wages. We have NAFTA'd our good jobs away. And entry level jobs aren't going to make up the difference. If entry level jobs are now career choices, then expect to live according to your means. Save up to buy a junker, and move into public housing. Or flip burgers during the day, and go to night school to elevate you standing.

 

[OldLady]

The small amount of increase in wages at these "entry level" jobs isn't going to get people off of welfare, because the job itself remains entry level. So you make a dollar more an hour. You get 8 bucks more at the end of your day. Which gives you enough to take your family out to dinner...at McDonalds.

Burger flippers don't qualify for CEO positions or wages. We have NAFTA'd our good jobs away. And entry level jobs aren't going to make up the difference. If entry level jobs are now career choices, then expect to live according to your means. Save up to buy a junker, and move into public housing. Or flip burgers during the day, and go to night school to elevate you standing.

If the increase isn't enough to cause a ripple, what is everybody bellyachin' about?

 

[The Irish Ram]

Forcing businesses to pay more gives the appearance of social justice. In actually, it is creating an opportunity to replace "wage earners" with robots who say, "May I take your order?".
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