Wednesday, April 9, 2014

INCOMING: Reports of the Consequences of Higher Minimum Wages

From WSJ:

A Carl's Jr. franchisee in San Francisco offset the county's higher minimum wage—now $10.74—by using less shortening to make french fries. A White Castle in Illinois cut two jobs to match competitors' costs in nearby Indiana, where the mandated wage is lower. A California pretzel maker pays different wages at mall stores that straddle two cities.

The consequences of a minimum-wage increase cut across everything from the number of hours employees are assigned, to menu prices to how often a drive-through lane is cleaned, according to interviews with more than a dozen businesses. The real-world impacts can vary: Some companies had no difficulties passing along labor-cost increases while other businesses said they might close marginal stores to pare losses...

Even in suburban Chicago, with a higher cost of living than the South, an increased minimum wage led to job losses. White Castle operates two restaurants just 16 miles apart with nearly identical sales and demographics but separated by a state line.

Because the minimum wage in Illinois is $8.25 an hour, a dollar higher than in Indiana, the company reduced two positions through attrition in its Chicago Heights restaurant. Even with that reduction, labor as a percentage of sales is 29.8% at that store versus 26.4% for one in Hammond, Ind.


  1. Of course the answer the WSJ proscribes is importing more cheap labor for the service industry!

    Let the local taxpayer pick up the tab for schools, healthcare, and police.

    No dog. Fight.

  2. RW-

    The story continues to be that "evidence" simply does not matter to the Leftist. What matters is a Class Functional Understanding. Truth is class functional and the necessary property of everyone is Proper Class Membership.

    It matters little if it is a Walmart that is zoned out of opening or the Little Store run by the family that lives over the other side of the tracks. When people begin noticing the food shortages it will not be seen as a refutation of Communalistic Social Engineering. Walmart will be blamed for the mess. The family that runs the Little Store will be pilloried for being Korean or White Oppressors of just being in the wrong class. They will quietly move somewhere else.

    Evidence simply doesn't matter. It should. It is proper to document it. What we are seeing, however, is the appalling end of Class Analysis. We all have tried to warn everyone and it didn't matter. To the Leftist, it never does.


    1. I agree with Charles, insofar as I understand what he's talking about.

      Evidence, facts and logic do not matter to members of a political persuasion whose defining characteristics are wishful thinking and emotional appeal, and the complete disavowal of critical thinking.

  3. The Chicago Heights white castle is at western and rt 30. Nearby are shuttered car dealerships. Take route 30 east towards indiana and economic dead zone gets worse peaking in Ford Heights just before the border. A short distance over the border into Indiana and there are businesses galore.

  4. Really great news this is one for stand up a running economic stage. There EconomocPolicyJournal is road of progressive model. Thanks. fair labor standards act is indicate the rights of workers and reporting of the particular labor law to protect the rules of employers and employees, according to the federal and local law. We are update latest version of the law labor act that declared by the state.

    1. Malia, are you spam, or are you real?

  5. Hi! Mic.. why this is your question?