Penelope
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- Jul 15, 2014
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You new to our New World economy?Restaurant die-off is first course of California’s $15 minimum wage
In a pair of affluent coastal California counties, the canary in the mineshaft has gotten splayed, spatchcocked and plated over a bed of unintended consequences, garnished with sprigs of locally sourced economic distortion and non-GMO, “What the heck were they thinking?”
The result of one early experiment in a citywide $15 minimum wage is an ominous sign for the state’s poorer inland counties as the statewide wage floor creeps toward the mark.
Consider San Francisco, an early adopter of the $15 wage. It’s now experiencing a restaurant die-off, minting jobless hash-slingers, cashiers, busboys, scullery engineers and line cooks as they get pink-slipped in increasing numbers. And the wage there hasn’t yet hit $15.
As the East Bay Times reported in January, at least 60 restaurants around the Bay Area had closed since September alone.
A recent study by Michael Luca at Harvard Business School and Dara Lee Luca at Mathematica Policy Research found that every $1 hike in the minimum wage brings a 14 percent increase in the likelihood of a 3.5-star restaurant on Yelp! closing.
Another telltale is San Diego, where voters approved increasing the city’s minimum wage to $11.50 per hour from $10.50, this after the minimum wage was increased from $8 an hour in 2015 – meaning hourly costs have risen 43 percent in two years.
The cost increases have pushed San Diego restaurants to the brink, Stephen Zolezzi, president of the Food and Beverage Association of San Diego County, told the San Diego Business Journal. Watch for the next mass die-off there...
Luckily, I live in the central coast area between L.A. and San Francisco, so this area hasn't gone as extreme left as those parts of California.
You know you could just get illegal Mexicans to do it, if you want it cheap. Then there'd be lots more food places. But for some reason you have a problem with Mexicans working illegally, but you don't have a problem with Americans working for too little money. Hmmm.
Boot 10 million illegal aliens, low skill Americans would earn more.
America has near record 5.8 million job openings
You need New World excuses not Old World excuses.
Boot 10 million illegal aliens, low skill Americans would earn more.
Not the problem, the jobs are out there, but the pay is low and they are part time or seasonal. So you have just admitted that illegal aliens work, good for you, and they pay tax,
Mexicans are not coming here anymore for work. They also hire HB1 visas and lay off 50 year olds, to let the Indians who are young and healthy take their jobs. No one has job security. You give you loyalty to a company for 20 years and they don't want to give you the pay raises or retirement, and you are just too old. Not all companies do this but many.