Yes, Barack Obama, who has never even run a lemonade stand, wants all businesses to have a minimum wage of $10.10.
Several months ago, heaping praise on the CEO of Costco, Obama said: “It’s a company that’s looking out for workers.” (Costco now offers new employees $11.50 an hour.)
And, when he visited the famous Michigan deli, Zingerman’s, (
where he acted like a big jackass called Paul Ryan’s budget plan a “stinkburger”) Obama also praised the co-owner, who is a proponent of the minimum wage hike.
However, Michael Saltsman, in his Wall Street Journal article, Why Subway Doesn’t Serve a $14 Reuben Sandwich, writes:
….In reality, these business are case studies in why the president’s plan to raise the minimum wage…is such a bad idea….First, Costco charges its customers as much as $110 a year for the privilege of shopping at the store. That’s a $2 billion-per-year luxury no grocer or restaurant enjoys.
As a result, the warehouse retailer rakes in what amounts to a more than $10,000 profit per employee….A casual dining restaurant, on the other hand, earns a roughly $2,000 profit per employee, which explains why most businesses aren’t following the president’s “just be more like Costco” advice….
And, with regard to Zingerman’s, Saltsman points out that Obama neglected to mention the cost of a Reuben sandwich at Zingerman’s: $14.
If every deli could charge $14 a sandwich, then perhaps an $11 or $12 minimum wage would be feasible….Expecting restaurants everywhere to do so is a recipe for business failure.
Is that exactly Obama’s goal?
Byron York: Washington Examiner — Obama’s work edicts could kill businesses on military bases