Oops: CA Is Proving Why Minimum Wage Doesn’t Work

First it was a gaggle of left coast cities that took the bait on the socialist argument in favor of massive minimum wage hikes.

Then it was the entire state of California, which is now officially both a sanctuary state and a state of increasingly a bunch of unemployed low-skill workers.

We hope that works out for them. But it obviously won’t.

The state joined the movement to hike the minimum wage to $15.

Which, any free marketer with a couple of synapses firing, knows generally isn’t a positive thing for the corporate bottom line.

So, of course, businesses have begun to lay off those minimum wage earners because, you know, shareholders, earnings, and what not.

The state’s decision has predictably backfired and is hurting the very people the law purported to help.

Stupid is as stupid does.

Here’s more from Redstate…

Restaurant chain Red Robin has found itself losing money thanks to the west coast’s love affair with hiking the minimum wage. As a result, the chain says they’ll be eliminating the jobs of busboys across 500 plus locations, essentially killing the jobs leftist set out to make better.

According to New York Post, Red Robin is looking to save $8 million by axing the jobs of busboys from each of its 570 restaurants. This comes on the heels of Red Robin eliminating its food expediters, which saved them $10 million in 2017.

“We need to do that to address the labor increases we’ve seen,” Red Robin’s chief financial officer Guy Constant told attendees at the ICR retail conference, according to New York Post.

While eliminating the jobs of the busboys, existing staff will have to pick up the slack. According to restaurant consultant John Gordan, this is going to put a damper on customer service.

You Might Also Like