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:
No kidding. Every business passes the cost to the customer or they don’t stay in business. This is really no surprise at all. The same thing happens when you overtax companies. The companies never pay the tax, they pass it along to the consumer, just like I would do if I owned a business (and I used to and when gas was ridiculous we added a surcharge or a minimum bill).
There has to be balance. The only known way to balance was through the use of labor unions.
As for the loss of jobs and the other b******t. I’ll let Nick Hanauer explain. https://youtu.be/97b8NUg8wDs
End result is called automation and many industries have gone to it in order to survive. No futher need for low skilled workers since they are replaced by a machine.
Over the many decades prior to the 80’s business was creative in doing everything it could not to pass expense on to the customer. Today business lack the creativity to devise ways whereby it’s the last resort to raise prices. Oil is the prime example. Just the possibility of rainfall raises price of a gallon of gas. Shareholders complain about high prices but are the reason for the high prices because a companys goal is to deliver value to that shareholder. There are things that can be done before a price hike but today’s business people lack the courage to be creative.
Brandon Wrinn
So what your saying is tough luck
Maybe you can’t afford to pay a little more for a Big Mac but I can
Btw I’m right about the impact “little or none”
The stupidity of comments from non accounting and non business people is astounding. Having been a restaurant owner, consultant and an accountant, I can say without reservation that an increase by 14% in minimum wage will only increase prices, if at all, marginally, (less than 2 %). And in many cases when people earn more they are more efficient with how thy do their jobs which can mean, with decent management practices, the cost of doing business actually goes down. and no increase in prices is needed yet profits increase.
Wages are but one cost among many that it takes to operate a business. In many cases the fastest means to increase efficiency and lower costs is by taking the lowest wage people in a business and give them a decent increase in pay. One advantage of this method is if that person doesn’t improve, then finding a person willing to take their place is far simpler as higher wages creates higher quality and more applicants for the position.
So since you are a small business you do not post a profit? Every dime you make goes to your employees?
Chris Long what type of business do you own?
Damn. My listeria wrap is gonna be $7.75 instead of $7.00 now? Whatever shall I do?
Electronics repair company. About to open my second store. I make what you do in a year in a month with one store. Im not bragging just telling you since you needed to know.
Also there is a difference in posting profits and compensating those who made you that money. Verse what larger corperatuons do which is cut wages and jobs go keep profits high and when they do well they give minimal wage increase.