Totally totally disagree. This is exactly what I called cherry picking.
Name me an enterprise or any businesses that reduced hours because of MW increased? Not just blanketly -------- $11/hour x 40 hours = $440 $12/hour x 36 hours = $432
1. Again the reduction or increase of hour depends on ----------- demands --------- Which has been the nature of businesses since the beginning of dawn--------- but using that as excuse because of MW hike is totally false.
I will use McDonald's as example---------- If a McDonald's has 10 employees all working on first shift 8 hours-------- they will cut it 6 hours. Is McDonald's shut down the store for the 2 hours gap or they will bring in the second shift 2 hours earlier? ----------- Then cut the second shift 2 hours ---------- then bring the third shift 2 hours earlier---------- Then close McDonald's 2 hours early? Or Olive Garden normally closed at 10 pm then close it at 8 pm? How is that even possible?
2. Prices go up employment goes down--------- Again that depends on the nature of business---------- but using that as an excuse because of MW hike is totally false. Name me a company that did this because of MW hike.
To make up the difference is just increase the price of french fries to 15 cents. BUT they DO NOT ------- DO NOT increase the price of french fries from $1.25 to ridiculous $4.00 -------- which is what the economist or W. post or Forbes are trying to imply.
I increase my prices from manufacturer -------- list ----------- distributors prices every year but I do not increase my prices that reduces my ability to compete.
Most or ALL of my post are based from real life, specifics, facts and honesty. I do rely on economist most of the time but there are times that I totally totally disagree. If the *OPINION* repeat *OPINION* of a reporter from Washington Post, Forbes or the economist is anti MW ------------- then that is what you got. All of them are saying the same thing ------------ They make it sound that the MW increase from whatever-------- to $15/hour overnight. And prices like french fries go up from my example $1.25 to $4.00 per bag.
So the economists hired by the city are all lying?
But beyond that, you are saying stuff here that is not just 'possible' but normal. This happens all the time.
But you want a specific answer, McDonalds. This is actually an absolutely perfect example, because I actually lived this. I worked at McDonald's in 1996 when the minimum wage went from $4.25 to $5.15. (phased in over 2 years).
So I can tell you exactly how this worked when I was there. We had 3 part time people that worked there. They fired all of them, and replaced them with one single full time person.
Now as you can mathematically grasp, 3 people working 30 hours, is 90 hours a week. 1 person working 40, is significantly less hours.
So how did they deal with that? The rest of us that were still employed.... simply had to do more work. We had a guy that would empty all the trash cans, and mop the floors, and clean the bathrooms. Now we had to do that in additional to our regular duties. We had another guy that would clean all the trays, and do cleaning on the grills and fry cookers. Now we had to do those things, in addition to our normal duties.
By the way, another thing we did was eliminate the 1 AM close. We started closing at 10 PM instead of staying open till 1 AM. Late night shifts when the number of customers is predictably small, become less profitable real fast when you increase labor costs. So it doesn't surprise me in retrospect that the store quit staying open late when the minimum wage went up.
I increase my prices from manufacturer -------- list ----------- distributors prices every year but I do not increase my prices that reduces my ability to compete.
Two things:
Your inability to compete in this specific case, is mitigated by the fact that all your competitors are facing the same problem.
If only McDonald's was being forced to pay higher wages, and all the other stores were not... then yes, competition would keep the price inflation in check. (of course it would likely push McDonald's out of business in those areas).
But a minimum wage law, forces up wages on ALL the stores. Thus, McDonald's can safely jack up their prices, because Wendy's, Burger King, Subway.... all the stores are also dealing with the same wage hike, and thus all are going to be pushing the same price hike.
If ALL your competitors were raising prices, would you be nearly as hesitant to raise your own? Of course the answer is no.
Second, if you were faced with going out of business, as some stores are, your trying to stay competitive really doesn't matter much.
Lastly, what I posted before, and I posted now, is not "opinion". It's fact. The post before was fact based analysis of labor data. The post this time was fact based reality which I lived through.