Restaurant Workers Lose Their Jobs Over Newsom’s $20 Minimum Wage

From what I recall university employees have increased at 3X the rate of student enrollment. Why is that? Also universities get away with increasing tuition almost with impunity because the government (through other lending organizations) will lend students whatever is required. Also full professors basically do not teach anymore - they make money doing research. Associate professors and teaching assistants teach the classes.

What is needed is a complete accounting of where each and every dollar spent for a student's tuition actually goes.

 

Most state universities are run by a state “board of regents”, but those people are just very highly paid bureaucrats”. In my state they go thru the regents on tuition hikes, but they have “professors” in the state that are paid $500k a year and have tenure. It’s just a joke.

In my state at the UofI they are building new buildings every year. And the administration building is a nicer than the damn taj-ma-hal.

Im just not a fan of what College has become, which is a business first, and an academic institution second

 

That's it, right there. People must have enough to live, and if an employer doesn't pay it, they collect assistance from the gov, food stamps, and taxpayers wind up, in essence, providing welfare to the businesses that should have paid them enough to live in the first place. but, of course, no one is suggesting overdoing it, and I think the debate is about whether $20 an hour is overdoing it. On a $13 burger, shake and fries, the wage increase is about an added10.5% to overhead, and all the owner had to do was raise the meal by a buck. The story is fishy as hell, and I suspect there is a lot more to the story than is being told.

 

Its' not 25%, no way.

I've owned businesses. In CA, before the wage increase, it was about $16.60 per hour, and $20 per hour, given that wages are about 50% of overhead in this industry, represents a little over a 10% overhead increase. In fact, it's less than that: Wendy’s increased prices by 8% Chipotle’s prices rose by 7.5%, and Starbucks prices are up by 7% meaning that all the owner of that Foster Freeze had to do was raise the price of a shake, burger and fries, costing $13, or so, by a dollar, which is doable. I know of no closings going on in my city of 100k people, I have a small business that does business with restaurants, and there are 'help wanted' signs all over the place. With the wage increase, these signs are coming down because kids now can afford to live and are applying for the jobs. CA is an expensive place, and even $20 and hour doesn't go that far. But it helps. More disposable income will stimulate the economy, increase demand, and offset the buck price increase. This wage increase is not an economy killer, like so many on the right suggest. There will be a short term negative effects, as it does provide a jolt to the system, but the longer term will show benefits, it always does, as the economy adjusts and as workers have more disposable income.

That FF story is fishy, and I suspect there is more to the story than is being told, like the fact that he shut the doors on the day the mandate took effect, didn't even try to keep his shop open. Something else is going on here, and it looks to me he is some kind of right winger who wants to blame his real problems that he's is not telling us about, blame it on Gavin Newsom.

Caveat: my policy "substantiation provided on request".

 

A few years ago, there was a world wide pandemic.
I don't know the point you're trying to make.
Inflation is inflation and is high because of the pandemic.

Do you want to go back to a pandemic economy?

 

Very few workers get paid on an hourly or daily basis.
Most will get paid 1x per week, every 2 weeks or bimonthly.

Successful businesses indeed produce goods people want. But that's not your claim.
You claim any business making a product is the reason people and production increases.

There needs to be demand for a good or service for sales to happen. And increase in demand leads to increase in production.

Now in the case of say Microsoft, they found a product that helped revolutionize how people communicate and do business.
They actually created a product where demand was wanted when it showed how it changed how people do things.

In the case of laser discs for music, not so much. Product without demand.

 

Democrats had no power to shut down the economy.
Especially in the entire world.

Obama years show strong growth once the housing bubble recession ended.
trump wages turned sharply down in 2019, before covid hit hard.

Presidents don't have much control over wages. Why do you even bring them up?

 

That is exactly claim. Production always precedes consumption.

 

Democrat governors shut down the economy. We had negative gdp growth in 2020.

All Obama did was return to the level before the housing recession. The Obama recovery was the weakest in history.

Real median household income is a measure of the standard of living. It is also a measure of the economic policies of the President.

 

California has double digit unemployment and GDP growth in the bottom quintile nationwide. How is this minimum wage not stimulating the economy?

 

How does it put more people in poverty?
And we've had min wage since the 1930s.
So there should be ample evidence of more people in poverty because on min wage.

More people are helped by higher wages than hurt.
But you might be focusing of the few.

 

Only if demand is there.
How many laser discs do you own?

But your initial claim is production creates wealth. That is true only if demand is there.

 

BS, dem governors can't do squat to other states or other countries.
I don't buy that silly claim.

Obama recovery went on for a record 11 years. Nearly the longest bull run in history.

But again, presidents do NOT control the entire economy.
Of the USA or the world.

 

None. And a market analysis would have shown that there was no interest in laser discs.

My claim is that production always precedes consumption.

 

Why did global gdp growth rate go negative in 2020.

The Obama recovery was back to the level before the recession eight years previously. It was the slowest in history.

 

People lose their jobs putting them in poverty. More people are harmed by the minimum wage than helped. The origins of the minimum wage is racism. To minimize employment mandate a higher cost of labor.

 

I want a President who knows where he is and what he's talking about.

 

Read the article the CBO has that I posted. It literally states it in that article. The CBO is not biased and they even have pros for it. But a major con is just what I stated.

 

I am referring to this post of yours. Which I and others have questioned.

That doesn't make sense.
And according to this site, demand is more related to prices.

...
The Law of Demand
The law of demand states that when prices rise, demand will fall. When prices fall, demand will rise.

The law of demand is simply an expression of the inverse relationship between price and demand. It involves price only. None of the other drivers of demand mentioned above are involved. If they do come into play, the functioning of the law can be affected. Demand can be seen to change for reasons other than price.

Demand Curve
A demand curve is a graph that displays the change in demand resulting from a change in price. It's a visual representation of the law of demand.
https://www.investopedia.com/terms/d/demand.asp

 

Pandemic..
The entire world clammed up due to covid 19.

Nothing at all to do with democrats.

Have no clue what you're referring to in terms of the obama years.
Stock indexes went up about 186% under his terms. GDP growth was positive. But for 09, which in Jan of that year was when his term began. So, he had very little to do with 09 economy.
And as I've said multiple times, presidents have very very little control of the whole US economy and virtually nothing to do with the world's economies.

...

https://www.macrotrends.net/global-metrics/countries/USA/united-states/gdp-gross-domestic-product

 

https://www.macrotrends.net/global-metrics/countries/USA/united-states/gdp-gross-domestic-product

 

Are there no other jobs to get?
Employment signs are everywhere.
Everyone who wants a job can get a job. Service industry jobs are still unfulfilled.

Min wages only affect a very few % of the workforce.
The last 5% or so that haven't reached the prevailing min wages market forces have determined.

If people lost their jobs with every increase in min wages over the last 100 yrs, we'd have no low wage workers left. But yet, there are plenty.

Data of growth over the last 100 yrs doesn't show your statement to be true. But for maybe very temporary situations for a very very small % of workers.

 

Who the heck would that be?
And what does that have to do with your inflation rant?

 

I did, that is projecting the future. Based on what?

We have 100 yrs of history of increasing min wages.
The data should be there to show people are hurt by min wages.
Yet, our economy is vastly larger today than 100 yrs ago, in spite of increased min wages.

Why not go with what historical data shows?

 

We are still a free market with an inflationary currency, so history simply shows that inflation eventually voids minimum wage which is when the economy grows. As it sits right now the federal minimum wage is non existent. No one pays minimum wage. Even illegals get under the table pay better than federal minimum wage. States that have high minimum wage have slower job growth right now. There may be other factors that contribute to these circumstances as well. But you can’t discredit the minimum wage as a factor as well.