Mayor of New York City Bill de Blasio rang in the new year of 2019 celebrating a city wide raise in the minimum wage to $15 an hour.
This raise was done in stages and this is the final step towards that oft tried and always failed goal.
Now remember this is not the first time, or the first city that this has been tried in, without much success I might add. Not for the minimum wage workers or their primary employers any way.
I wrote about the impact of raising the minimum wage in the Bay area around San Francisco back in 2017 as well as the exact same negative impact on Seattle Washington that we are seeing right here again with NYC You can read that article HERE.
It did not take long for the negative and predictable effects to reveal themselves. I say predictable because the exact same thing has happened every time this has been tried. New York City restaurants immediately felt the crunch as seen in the article below.
Click Image for article)
In the following tweet and linked CBS article we can easily see those negative effects and they happen very rapidly with devastating impact on the very people the $15 an hour minimum wage claims to be helping. And its not just NYC, 20 other states are also in the process of raising their minimum wages so I am sure we will be hearing more stories like these. As usual with most leftist "great ideas", they just are not thought through that well if at all.
I mean, the year is not even a month old yet and we already have this happening?
As I mentioned in my 2017 article restaurants are the #1 employers of minimum wage workers and as we can see (once again) these businesses simply cannot absorb the extra cost and the first place any business is going to go to cut cost, is personnel.
This is the fatal flaw in this policy that either these leaders can simply not comprehend, or they are doing it intentionally to drive the economy down. In my book neither of these is exactly a good thing.
This is after all right out of the playbook of the Marxist, destroy the economy and create widespread poverty and unemployment making everyone have no choice but to turn to the government for support.
This is called economic slavery. And personally the only thing that makes sense to me as to why they would continue to repeat their failures is because it is done intentionally towards this goal.
Reports are already telling the story.
Having worked many years as a manager in the restaurant business I understand what this all really means. The cuts in personnel are just the beginning. As mentioned by Mr. Bloostein he has also had to raise menu prices.
So a cut in personnel will inevitably result in low moral among the remaining employees who are doing double or even triple jobs to cover the gaps. This will then result in a serious drop in quality of service.
This is shown as Cerullo continues.
In most cases except for the most loyal customers the raise in menu prices, combined with the lower quality of service will eventually drive people away. Less customers cause more cuts or employees quitting resulting in many restaurants like this simply getting driven out of business.
Also mentioned in my 2017 article the higher rated restaurants 4-5 stars will feel little impact from this. they will simply pass the cost on to their customers who will likely not even blink.
It will be the 1-3 star restaurants that will be hit the hardest, and guess what? These are the businesses that employ around 90% of minimum wage workers.
In a nut shell, the raise in minimum wage is driving the very business's who hire minimum wage workers OUT OF BUSINESS..
Explain to me one more time how this is supposed to be helping the minimum wage earner when they end up with no place to work and earn that $15?
Because it makes no sense whatsoever to me.
This pretty much leaves them little options and no place to turn but to the government and join the ever grown ranks of socialist welfare recipients. Which I happen to believe is the whole point.
And it is not like they had no idea what would happen.
From 2017, Seattle Washington.
Also from 2017, San Diego, California (Click Image for article)
And we can not forget about the replacement for all of these people and what company's are, and have been pushing for more and more, is automation.
Eliminate the PAID employee all together. No more insurance or workers compensation costs and none of the normal problems that are constant with human personnel like needing days off for being sick.
From 2016 (Click image for article)
As we can see the technology already exists. In some places like the Amsterdam airport shown above, it is already in use.
This is coming my friends and it is right around the corner whether we want it or not. People moan and complain about the leftist politicians pushing us into socialism but is it really the people themselves or are they simply being pulled along by the ever growing and ever more present technology that makes humans obsolete? The lure of so much money becoming available feeds corruption like a junkie and soon the old cycle of socialism repeats itself to where there are only two classes, the very rich, and the very poor, just like we see in modern day Venezuela.
The only way to avoid this of course, is to not let a socialist take control of your country in the first place. Look at how much damage Obama was able to do to our economy and how many people were pushed onto the welfare roles in just 8 years.
Socialism has never worked, and no matter what pretty names you add to it, it never will.
But we also have to be realistic and understand that with the constant push for automation where more and more machines will replace human workers, we may end up with no choice in the matter.
"If we continue to develop our technology without wisdom or prudence, our servant may prove to be our executioner." ~ Omar Bradley
The website legalinsurrection.com has a long history of covering this subject which is why they are my primary source for this article.