Tuesday, March 29

Why Culvers Wants a Minimum Wage Hike

I could never figure out why Culvers was running around with Doyle in support of the minimum wage increase. Now I know. From the Cato institute:
"....franchised fast-food outlets do not necessarily suffer a competitive disadvantage when the minimum rises for all restaurants, including local pizza and sandwich shops."

It was a light going on in the economic part of my head. Bigger companies have an easier time dealing with added costs. They have several dozen employees; they can easily arrange to let a few go. Your local little sandwich shop does not have such an easy out nor the capital to ride out the change. They face a large threat of going under and dropping all of there employees cold.

Who wins? Big business, and those how have enough skills and productivity to make it worth a company to keep them on.

Who loses? The poor who loose their jobs, the small businessmen who face increased pressure on their small but important endeavor, and the consumer (many of whom are the poor) who must pay more for their products.

Stop the minimum wage increases. It's not fair to the poor, it's not fair to anyone.

HT:Power Line

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