Last year, high-school drop-outs, liberal bleeding hearts and food service workers took to the streets demanding a higher, “Living Minimum Wage” for those that consider themselves to be victims of society. I, along with other writers and economists warned you all at the time that such action on the part of liberal politicians would spell disaster for affected parts of the economy. Almost immediately, restaurant owners and some other businesses started having problems.
The first monster to show up was the owners found it necessary to hire more help. Not because business had a major increase, but because all of a sudden, employees found out that the pay increase meant that they no longer qualified for government hand-outs because they made too much money. For that reason, many of them decided they only wanted to work 28 to 32 hours a week.
That action allowed them to make the same amount of money as before and keep their food stamps and other hand-outs while having more free time to enjoy them. Other issues included the cost of health care for the increased number of employees, and the costs of training and turnover. All because of a poorly thought out action that improved nothing.
As a result of Obama’s new wage laws, dozens of businesses have decided to close their doors rather than deal with the increasing costs and labor problems. Others have looked at automation as a defense against employees with limited skill sets. But the biggest effect to you and I has been the increasing number of businesses, especially the ones in the food and entertainment industries that have started to introduce a surcharge to our bills over and above the price, tax and gratuity.
For years, restaurant owners have argued that a higher minimum wage means pricier meals. Now some restaurants in states that recently raised the minimum wage — including Arizona, California, and Colorado — are putting the proof in customers’ checks. Surcharges of 3% to 4% to pay for higher labor costs are “the emerging new norm,” a spokeswoman for the California Restaurant Association told The Wall Street Journal.
Restaurateurs say they’re adding the surcharge because the alternative of increasing the prices of individual menu items can cause customers to pick a less expensive option or simply ditch the restaurant altogether. Also a surcharge lets businesses that opposed minimum-wage increases to highlight the consequences directly to their customers. As David Cohn who owns 15 restaurants in San Diego put it: “We want people to understand there is a cost.” “How do we stay in business with margins shrinking and competition increasing?”
All this proves two things, People all want something for nothing, and the ones that have the least want the most. Secondly, there is a cost to everything that is given to someone, and you should look at that cost before your decided how to handle a problem. Minimum-wage jobs have always been entry level positions into the work force, that is why the pay so little. Everyone must start somewhere and if your still working for minimum wage after a year, you need to take a serious look at getting more education.