July 11, 2017

Tuesday Off-Topic (Moderated) Open Thread (071117)

Filed under: Lucid Links — Tom @ 6:00 am

This open thread is meant for commenters to post on items either briefly noted below (if any) or otherwise not covered at this blog. Rules are here.

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2 Comments

  1. New York restaurateur: we axed 500 employees because of higher minimum wage

    https://quinersdiner.com/2017/07/11/new-york-restaurateur-we-axed-500-employees-because-of-higher-minimum-wage/

    They touch upon the central core of the liberal myth but don’t spend much time on it…the idea that raising the minimum wage would be offset by higher ticket prices (Jimmy Carter style). In this economic environment, where the middle class is under constant pressure the upward direction of price is capped due to declining numbers of middle class to buy the product or service. In other words, an inflation psychology can’t take hold where there are too few consumers for the higher price point. The problem liberals have created by democratizing poverty by demolishing the middle class is you can’t raise everyone’s wage and then expect everyone else to pay more when they can’t.

    They also talk about automation and the use of the tablet for placing orders to eliminate/reduce order takers. If it takes (for the sake of argument) 10% of the server’s total time for serving the customer to get the order (paperwork), then automating the ordering process (paperwork) means you can cut 10% of the servers.

    The entirety of the liberals thrust in raising the minimum wage is to ignite inflation as a means of wealth redistribution. What liberals don’t tell you is that this is the most regressive form of taxation. The rich could care less if they paid 10% more, they can afford it, the poor and the rest of us are forced to choose between paying for things, meaning something else doesn’t get bought thus lowering economic activity. The diversification of economic activity creates jobs because alternative opportunities are allowed.

    Comment by dscott — July 12, 2017 @ 8:13 am

  2. Thanks so much for that. The underlying interview was from January. Found a more current interview with this guy from Monday saying he’s now down by 1,000 employees.

    Comment by Tom — July 12, 2017 @ 10:08 am

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