New York state followed West Coast cities to raise the minimum wage to $15/hour. The left-wing leaders of the state claimed this would boost pay and improve the life of all New Yorkers. Oh, how they were wrong. After the law went into effect this year, the results have not been pretty.
We might never understand why Democrats push a massive hike in the minimum wage. Currently, the national minimum wage is $7.25/hour. In some states, it’s a little higher. The current trend among the left is to raise it more than twice the amount to $15/hour. Sound good? Hardly.
In Trump’s economy, wages are rising on their own. Why? Because, thanks to the president’s reduction of government regulations and historic tax cuts bill, businesses have more money. To keep good employees, they are raising their wages. That’s how it’s supposed to work.
But Democrats want to force companies—even small, struggling business—to raise wages. Even if they don’t have the money to do so. How does a company in a big city like New York find the cash to increase salaries to $15/hour? It’s not like these businesses can just find more cash to pay their people. They have to cut corners in other areas to do this.
And in New York, that means cutting back workers’ hours, raising prices, or just laying off people altogether.
New York City’s $15 minimum wage, which began to take effect Dec. 31, 2018, was meant to bolster earnings and quality of life, but for a lot of residents, it’s doing the opposite…
Cuomo claims to have created the bill with “the needs of workers and businesses alike” in mind, but a lot of business owners in the boroughs beg to differ. They say the extra money comes with an unforeseen cost: higher good prices, fewer working hours and layoffs…
Roughly 77 percent of NYC restaurants have slashed employee hours. Thirty-six percent said they had to layoff employees and 90 percent had to increase prices following the minimum wage hike, according to a NYC Hospitality Alliance survey taken just one month after the bill took effect. [Source: Daily Wire]
Look over those numbers again, because they are staggering. 77 percent of New York restaurants had to slash employee hours. More than 90 percent had to increase prices on their products. Over 36 percent had to fire employees. And this will only get worse as time goes on.
The cost of doing business doesn’t decrease over time. And the profit margins for restaurants are already razor thin. Forcing companies to pay entry-level workers such a high wage is criminal.
Do you want to pay extra for a cheeseburger? How about twice the amount you were paying before? This law was supposed to help workers, but instead, it is punishing customers, employees, and businesses.
Gee, who could have foreseen this result? Oh… EVERYBODY. We already saw how this $15/hour wage hike damaged businesses on the West Coast. Hundreds of restaurants went out of business in San Diego as a result. In places like Los Angeles, companies decided to just move—because they couldn’t afford the hike.
Larger franchises, like McDonald’s and Wendy’s, just eliminate human staff altogether. They are implementing menu kiosks or automated robots to do the work people used to do. That is the only way they can afford the $15/hour hike and still offer affordable prices to customers.
Most businesses owners are saying the wage hike really only works in preventing employees from working more than 40 hours a week. But in many cases, you can’t run a business when nobody can work overtime. Staff used to put in more hours—and get paid accordingly. But overtime is a thing the past in New York. And it’s only a matter of time before that hurts many businesses.
Will Cuomo be around when restaurants, hotels, and other businesses go belly-up? Will the Democrats offer a solution when the jobs market in New York tanks? Will they have an explanation for why, yet again, the cost of living in the state is rising? Of course not. They don’t seem to care about the very people their laws affect.
Makes you wonder why anyone supports them?