Harvard figures out raising minimum wages causes bidnis failures

cuda.1973 · Jun 21, 2017

Gee, they could have asked anyone who owns a small bidnis, and saved the effort.

http://www.dailywire.com/news/17758/harvard-study-minimum-wage-hikes-killing-amanda-prestigiacomo

"The evidence suggests that higher minimum wages increase overall exit rates for restaurants. However, lower quality restaurants, which are already closer to the margin of exit, are disproportionately impacted by increases to the minimum wage," says the study. "Our point estimates suggest that a one dollar increase in the minimum wage leads to a 14 percent increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating), but has no discernible impact for a 5-star restaurant (on a 1 to 5 star scale)."

Merely suggests? Don'tcha love how researchers speak. (Actually, NO!)

I know, some of you will carry on how big corporations are evil, and they exploit the workers, and they need to be forced to do the right thing, etc.

Yeah, whatever.

Too bad more people are employed by small businesses (50 employees and under) than the evil corporations. Not to mention how many of those are "mom and pop" operations. Anyone who has owned/run one can tell you about the insanity of these policies.

Currently, rising labor costs are causing margins in the sector to plummet. Those with the ability to automate like McDonalds are doing so… and those who don’t are closing their doors. In September 2016, one-quarter of restaurant closures in the California Bay Area cited rising labor costs as one of the reasons for closing," McBride wrote in Forbes.

"While wage increases put more money in the pocket of some, others are bearing the costs by having their hours reduced and being made part-time," he added.

The sad part of this is that while Big Bidnis, Inc. likes to kvetch about this stuff, it helps them in their never-ending goal of crushing the little guy.

Because our mom and pop operations are such a threat to them.

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Harvard figures out raising minimum wages causes bidnis failures

cuda.1973

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