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IPFS News Link • Minimum Wage

"I Don't See How We'll Survive" - Rising Minimum Wage Squeezes California...

• https://www.zerohedge.com, By Tyler Durden

Democrats in Washington are trying to push through a bill to raise the federal minimum wage, but around the country dozens of cities and states raised the wage floor at the beginning of the year. And like clockwork, small businesses across the country are already struggling with some of the issues that conservatives warned about. To wit, many businesses, particularly restaurants, which are notoriously low-margin businesses, have been forced to lay off employees, even after raising prices to meet the new wage requirements.

In other words, just like it did in Seattle, a higher minimum wage is hurting the poorest and most vulnerable workers - in other words, its hurting the same people it was supposed to help.

In a piece published this week, WSJ takes us to the Bay Area, where the owner of a restaurant called Patatas Neighborhood Kitchen, situated in the small city north of Oakland. After the city of Emeryville raised its minimum wage from $15 to $16.30 this year, the restaurant's owner was forced to lay off six of his 10 employees and eliminate the dinner shift.

The economy is booming in the Bay Area, but at Patatas Neighborhood Kitchen, located in this small city just north of Oakland, owner Marcos Quezada recently eliminated the dinner shift and laid off six of his 10 workers.


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