$15 Hr. Minimum Wage: New York State Follows Seattle (To What, Exactly?)

McDonald'sThe minimum wage boost passed the state’s Wage Board; it needs only the Governor’s signature, which is expected. It moves New York City’s fast food chains (and no one else) to the new high over 4 years; the rest of the state gets 6 years, with an increment every year. This is one more such move in what appears a developing chain, following the initial action in Seattle. All of it appears as a reaction to a rather perfunctory “nation wide” campaign by the Service Employees’ International Union (SEIU) after that body proved unable to organize fast food. Conclusion: If the union can’t do it, the Democrats will.

The move has some interesting aspects. It applies to chains with over 30 locations in state. An obviously prime target: McDonald’s. With so large an increase in labor costs, Big Macs prices must rise significantly.in a time its sales have been dropping. That’ll teach ’em to resist an SEIU organizing drive!

What favors will a significant fast food price rise provide the customers? Last time we read: “How to Stimulate an Economy,” hefty price increases were somehow omitted. We note too that a lot of fast food customers are lower income folk who really can’t afford pricey restaurants. Aren’t these supposed to be the Democrats’ favorite folk to help?

There’s one more, rather ironic, side effect already occurring in Seattle: Workers receiving the hefty raises include those asking to work fewer hours at the higher rate: Earning too much could jeopardize their platter of government benefits, many of which are income-qualified. Right …

And we remember reading of the new robot that takes orders, accepts payment and makes and delivers dozens of different burgers at a rate of 300 per hour. It replaces three present workers. Hmnn … wonder how much in dues the SEIU will collect from those?

Unanswered questions sticking in our minds:

1.How many present workers will be laid off as sales decline and machines move in?

2. How many stores will close?

3.How many potential new stores will never open?

Those mean little to politicians. The media won’t be pointing to these effects. It will be applauding the compassionate Democrats, who will receive more votes. It’s hardly rocket science. We have another, final question that is purely rhetorical, at least these days:

4. What business is it of politicians to be involved in the prices and costs of business in what is supposedly “Free Market Capitalism?” Yeah … Especially given the results that they seem to produce.

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About Jack Curtis

Suspicious of government, doubtful of economics, fond of figure skating (but the off-ice part, not so much)
This entry was posted in Economics, Government, Politics and tagged , , . Bookmark the permalink.

2 Responses to $15 Hr. Minimum Wage: New York State Follows Seattle (To What, Exactly?)

  1. Michael says:

    All scary questions. Yet the answer might be worse. The only way out of socialism right now seems to be to elect Donald Trump president. Of course he can’t be worse than what we have. So far. I am actually looking at him as the only real choice !! Scary

  2. I also notice that in Los Angeles, the minimum wage is set at the prior lower rate if the location’s employees are unionized. So, not only do you NOT get the raise to the NEW minimum wage but you get to pay union dues too!

    And the sad part is: I bet everyone of those people will STILL vote for these politicians.

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