Yes, raising the minimum wage hurts business and causes job loss.

But the Dems keep pushing it.


Via Breitbart:

….Last month, the small Bay Area town of Emeryville, California, (population 10,000) decided to act as flag-bearer for raising the minimum wage in California, hiking its minimum wage to $14.44 per hour.

Even though businesses with less than 56 workers are exempt from the $14.44 rate and do not have to raise their wages to $15 until 2018, Vic Gumper, who owns Lanesplitter Pizza, with outlets in Berkeley, Oakland, Albany and Emeryville, decided not only to bite the bullet but swallow it, paying his workers $15 to $25 an hour while eschewing tips or raising prices.

He advertised his $30 pizzas and other food items as “sustainably served, really … no tips necessary,”….

Sales at Gumper’s locations have plunged 25% in the last few months; some of the locations now force workers to skip their lunch hours….


Bloomberg: Where a Higher Minimum Wage Hurts the Poor

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10 Comments | Leave a comment
  1. Maynard says:

    This might work for some upscale services and products. Some of us choose to pay more (if we have discretionary income) when we perceive we’re getting value for our money. And some businesses create a model that makes it work. In-N-Out pays its employees more than other fast food chains, and nevertheless maintains competitive prices. As a result, it retains dedicated employees, and has established a loyal, enthusiastic customer base. Interestingly, In-N-Out is owned by a family that espouses Christian beliefs.

    When companies work to make their employees more valuable and then pays them more, it’s win-win. Not so much when the State declares the value of the employee to be higher than the production. When you push the price of your typical Subway sandwich from $5 to $10, people will start slapping grocery meat between grocery bread and make their own $2 sandwich, and jobs disappear.

    The problem with the Obama mentality is we don’t collectively worry so much about jobs disappearing, because there’s always another welfare check waiting to be sent. Just like we don’t collectively worry about banks going broke, because there’s always another bailout. We’re too big to fail, don’t ya know?

    See my old post, “Minimum Wage: Doing Good vs. Feeling Good”.

    • Vintageport says:

      Oh now you’ve gone and done it, Maynard. Tying In-And-Out Burger to Christianity. It’s only a matter of time now.

    • ReardenSteel says:

      In-N-Out has been owned by the Snyder family since it was founded in 1948. They continue to put out a good product at a good price through volume, volume, volume. There’s one a few minutes from where we live and every single day at lunchtime, there is a line of cars out into the street at the drive-thru. Every single day. They pay their people well and promote almost exclusively from within. A great American success story.

  2. Alain41 says:

    Re forcing to skip lunch hour; there’s a labor law that you have to give employees a break after so many hours worked. May be in conflict. Could increase Union grievances and lawsuits.

  3. Squirrel says:

    Any liberal reading this, got lost at the percent sign.

  4. Vintageport says:

    I can’t imagine that the drop in sales would be as low as 25%…will have a bigger impact on either sales if prices are raised or profit if they aren’t. And BTW, is there any less meaningful description of a business or its product by calling it “sustainably served?” What does that mean anyway? What business owner doesn’t want to sustain his or her business? Vineyards in California’s Napa Valley are promoting their wine production as “sustainable.” That makes me happy to know that when I go back next time the vines will still be there.

  5. strider says:

    = unsustainable economy.

  6. LJZumpano says:

    Sorry, can’t comment. Keep looking at that pizza and everything else falls away, though my better half gets annoyed at a $11 pie, no way would a $30 pie ever reach my lips. Fortunately we have a pizza place with $6.99 pies, and are they delish.

  7. Kitten says:

    No matter how hungry I am, I can never eat more than two slices of pizza. 🙁 My son and his buddy are always happy about that.

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