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:
Sean you are the one who does not understand economics. As the minimum wage goes up workers will be fired and replaced by automation.
Christopher Booth you need to fact check your graph and your statement.. its so far off its hilarious. Minimum wage has never even been 11 an hour with inflation taken into account.. So your 25 and hour is completely bs
Spencer Carey Sweeting In 1964, the minimum wage was $1.25 per hour….Paid with 5 SILVER QUARTERS…Today, those very same 5 SILVER QUARTERS melt for about $20…..so there’s that….Put another way, in ’64 a gallon of gas was about .25 cents….you’d get 5 gallons for your 1 hours work….today, at $7.50 an hour, you can get maybe 3 gallons….for the same hours labor. .
so, pay me with the same 5 gallons of gas, about $13 an hour….
Who cares what Chipoltes does… 😛
What did they respond by again? Giving more people salmonella?
Inflation is only caused by monetary policy not wage laws price increased not inflation. Site needs new authors.
Philadelphia just imposed a sweet drink tax of $0.015 (or 1.5 cents) per OUNCE.
It’s going to be interesting to see the law of unintended consequences play out on that one.
Matthew, that’s easy for you to say when you yourself are not a business owner and don’t have any skin in the game. Everyone stop trying to convince this “negative” genius on the ripple effect of price increases in labor. The fact that GM and Hostess are two prime examples does not phase this guy. That’s why I say he is a negative genius… The mathematical theory suggests his negative computing power will not figure it out…
Do people actually believe that this will not raise the price of everything, thus making for a worse situation for everybody and not just the ‘new to the workforce’ people making minimum wage? I am all for annual standard of living wage increases but the lack of foresight with this big bump is kind of surprising