Video Description

A few years ago, I reported that Seattle’s minimum wage hike killed jobs.

Now, California is making the same mistake.

Fast food workers in California fought hard for a $20 minimum wage.

They won.

Now they have to face the unintended consequences: Job loss, higher prices, automation replacing people, and fewer opportunities for the young and unskilled.

Will politicians ever learn?

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79 sats \ 4 replies \ @grayruby 28 May 2024

The workers are always shocked when their hours are cut or jobs are lost after min wage increases.

Here is a fun example:

I remember in Ontario when the min wage jumped from 11.75 to 14 overnight (I think that's what it was) after the next pay period I had an employee that worked part time for me. She called me and said something was wrong with her pay cheque.

I said "what's wrong" and she replied "you took a lot more tax off than usual" and I said "firstly, I don't take tax off, the payroll software does it automatically. And it does it based on the income tax thresholds set by the government, so likely the minimum wage increase pushed you into the next tax bracket and that's why it seems like much more than usual". She said "but I just leased a new car because I thought I was going to make an extra 300 a month with the increase but now I am only making an extra 150 a month. I need more hours." To which I replied "about that. Unfortunately the min wage increase is a major expense to us and we cannot pass it all on to our customers right away so we will definitely not have additional hours available and in fact will likely be cutting some hours from all part time employees." To which she replied "but if I pay extra taxes and you cut some hours from me I won't be making any more money than before". To which I replied, "unfortunately there is not much I can do about it. I understand it is frustrating for you."

Two weeks later she asked if I could pay her in cash and when I said no, she quit and took a cash job elsewhere.

30 sats \ 3 replies \ @Undisciplined OP 28 May 2024

That's brutal. I'm glad I don't have to manage employees anymore. Those situations are rough.

Do you really spell it "cheque" up there?

52 sats \ 0 replies \ @grayruby 28 May 2024

The worst is managing unionized employees. When I worked in the corporate retail business I constantly had to screw over good, hard working employees in favour (another correct spelling) of bad, lazy employees due to seniority rules as defined by the collective agreement.

52 sats \ 1 reply \ @grayruby 28 May 2024

Yes, we spell cheque correctly.

In Canada check is to inspect something or a hit in hockey (keeping one's progress in check). A cheque is document detailing a payment.

71 sats \ 0 replies \ @bitties 28 May 2024

Alright you’ve convinced me. XD

69 sats \ 6 replies \ @kepford 28 May 2024

Its all so tiresome. The price of ignorance and naivety is great. The politicians do not care. They do not feel the impact. The peasants fall for it over and over again. The politicians will blame big business and greed. Fair enough, they are greedy. I always grant someone that fact. But why didn't they do these things before? The politicians forced this situation. They do not care about the masses. They care about themselves. They promise the world and when they fail they blame others. Then they do it all over again. This cycle will repeat until morale improves.

69 sats \ 2 replies \ @kepford 28 May 2024

The true naivety is believing you were ever more than a vote to a politician. That these are unintended consequences. That the politicians even care. They have no skin in the game. At least a business can lose customers and employees. They can suffer the consequences more directly.

55 sats \ 1 reply \ @Undisciplined OP 28 May 2024

Tom Woods made such a good point about minimum wage laws: they punish the person least deserving of punishment.

We can infer that someone's employer literally made them the best offer, out of every other person on Earth. So, why are we going to that person and telling them they need to do more?

21 sats \ 0 replies \ @kepford 28 May 2024

Exactly. I think a case can be made that the world would be better off without wage floors. It is basically an unemployment program.

55 sats \ 2 replies \ @Undisciplined OP 28 May 2024

Sometimes, I try to counter the greed copout, by asking "Why would you put greedy businessmen in a situation where they'll save money by firing people, then?"

For some reason, that's never gotten me anywhere.

69 sats \ 1 reply \ @kepford 28 May 2024

There is a mental hurdle people need to get over. The assumption of greed is something people really don't grasp. They seem to only have a narrow vision of it. Only that one fed to them. They do not see the greed in those making promises. They do not see their own greed. This one is the hardest to see. Everyone is greedy, to me that's the key to understanding how the world works.

Obviously some are more greedy than others but unless you are working for free, greed plays a role. One will argue, I'm not being greedy but that is only a matter of perspective. The business owner doesn't see themselves as greedy either. Nor does the politician. But when you look at it objectively they all want what they can get... The come to agreement on a price. The state is the outside bully inserting themselves into the situation.

65 sats \ 0 replies \ @Undisciplined OP 28 May 2024

"Greed caused _______." is just like saying that gravity causes plane crashes. True, but completely useless.