Minimum wage boost already killing jobs
by John Seiler | August 11, 2014 9:16 am
California’s minimum wage jumped to $9 an hour from $8 on July 1, and further will rise to $10 in 2016. People who still have minimum-wage jobs are enjoying a raise.
But the imposition is slamming others. Watchdog.com reported:
In a survey of 163 restaurant owners in San Jose, 66 percent said they raised their prices, 45 percent reduced employee hours, and 42 percent reduced staff, EPI stated.
This survey seems to oppose the findings that states that have increased the minimum wage gained a bump in job growth, according to data the Labor Department released Friday.
I’ve noticed the increases myself at a restaurant I go to every now and then in Anaheim. In July, prices jumped about 20 percent. I always set a certain amount in my budget to spend in this and other restaurants, so I was surprised at having to pay $5 more. Next time, I’ll just order $5 less food. Unlike the government, I can’t pay for higher expenses by raising taxes.
I guess First Lady Michelle Obama would say that’s good because I need to lose weight. But it means less business for the restaurant.
Future minimum-wage increases also look to hurt. The Chronicle reported[1]:
Oakland’s Youth Employment Partnership spends roughly $1.8 million a year to give 800 hard-to-employ teens steady minimum-wage jobs that keep them away from vice and encourage them to appreciate a hard day’s work.
But the nonprofit could be forced to cut the jobs it offers by 30 percent next year if Oakland voters approve a plan in November to raise the city’s minimum wage from $9 to $12.25 an hour starting March 1, its executive director said.
Ultimately, raising the minimum-wage just means more automation. Computer power, still following Moore’s Law[2], doubles every 12 to 18 months. So computers and robots will just keep getting better and cheaper. IBM just developed a new chip that, according to the New York Times[3], “functions like a brain.”
Finally, here’s a video showing a computer replacing fast-food cashiers. “It’s time to give America a raise” is the slogan President Obama [4]and others are using to push for higher minimum wages. A more apt slogan would be : It’s time to give America a pink slip.
- The Chronicle reported: http://www.sfgate.com/bayarea/article/12-25-minimum-wage-in-Oakland-could-hit-5652706.php
- Moore’s Law: http://en.wikipedia.org/wiki/Moore's_law
- according to the New York Times: http://www.nytimes.com/2014/08/08/science/new-computer-chip-is-designed-to-work-like-the-brain.html?_r=0
- President Obama : http://www.barackobama.com/raise-the-wage-petition/
Source URL: https://calwatchdog.com/2014/08/11/minimum-wage-already-killing-jobs/