Liberals subscribe to magical thinking, believing that free college tuition and free health care to illegals will somehow end up a net win for the public. But reality often intrudes on this magical thinking like a big pimple on the end of your nose, and it is painful and unsightly. In this case, the laws of economics are intruding into the magical thinking of liberal politicians in San Francisco (as if there were any other kind there), and it is a growing problem.
San Francisco has declared that the minimum wage in the city, now being replicated in several other fact-challenged cities, will rise to $15 by 2018, and polls there predict happy, better-paid workers who will finally have a “living wage.” They have also insisted that this will not increase inflation and that it will be a boon to the minimum wage worker. That is a lie. And the impact is just now showing up as the first mandated rise from $10.74 to $12.25 is being implemented by certain retailers.
See who is raising prices in San Francisco, page 2:
One of 2 possibilities. #1 less employees or #2 you get less product for the same $. Instead of a 1/4 ” pound burger it’s 3/16 of a pound. Instead of a 44 oz drink you get 42 oz.
But the bad “I don’t give a c**p…cause I don’t need this job” service continues.
Chipotle is increasing their margins as well. A $5.00 might contain 35% of its cost content in labor or $1.75, then multiply that by 1.14 and add it back to 3.25, then divide by 5.00. Prices should increase 4.9% plus the incremental increase for retirements and unemployment insurance, thus 7% total.
What did they think would happen? Someone has to pay for the increase in wages. DUH!
did they raise only the minimum wage? why would u raise minimum wage and not those that earned their wage? example 2 chipolte employees one making minimum wage and the other earned a fifty cent raise recently and now u just erased what that 2nd employee earned….see how FUCKING SOCIALISM DOESNT WORK YOU FUCKIN MORONIC MOTHER FUCKING IDIOTS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!??????????????????????
That’s exactly what happens. You’re so right Janice Harbron Matthews.
So the people pushing for a larger minimum wage thought prices would stay the same? These places have the profit margin down to a science. To retain the same level of profit higher employee cost means higher cost to the consumer.
Wage price spiral= rampant inflation, as usual.
Well, that’s capitalism!!!!
First they get rid of avocado and now this….glad we don’t eat there!