TOLD YOU SO: Minimum Wage Increases Already Costing Jobs In Two States
Liberal fought and fought to try and get the minimum wage increased in their states.
Well, they finally got it, and what have been the results so far?
In New York and Massachusetts, the minimum wage increase has been disastrous causing job loss and chaos in the economy.
According to Forbes,
For some of these businesses, the minimum wage hikes tip the balance between staying in business and going out of business.
That’s what happened to once iconic Boston restaurant Durgin-Park in Faneuil Hall. It closed the doors after two centuries in operation, as it couldn’t cope with wage and healthcare premium hikes.
For other small businesses, minimum wage hikes have yet to tip the balance between staying in business or going out of business. But they force them to cut employee hours or lay-off employees to cope with the higher payroll. “First, we have to cut overtime,” says Chris, a franchise owner in Long Island. “Next, we have to lay people off, if we want to stay in business.”
Nowhere is this more evident than NYC, which has seen wage hikes year after year, now paying what the ‘Fight for $15’ movement has fought for around the country.
At the beginning of this year, New York City raised its minimum wage to $15, which is a 15% increase from the 2018 level, and a 34% increase from 2017.
So, what was the end result after this tsunami rolled over the city?
“Close to three-quarters of restaurants in New York City have cut labor input since the minimum wage was raised to $15 per hour,” Forbes wrote.
Mandatory wage increases is never a good solution. Mandating that someone pay their workers more is only going to cause problems.
First of all, they've got to make up for that money somewhere so what are they going to do? They're going to raise the prices on their goods and services in order to make up the difference for that lost money.
Secondly, that's going to encourage businesses to look for ways to get rid of employees and automate their processes as much as they can in order to eliminate that employee cost altogether. A machine doesn't need health insurance or paid time off. Machines don't call in sick.