Many city and state governments have passed laws to raise the minimum wage to $15.00 an hour.
Great intentions … but the unintended consequences are terrible.
These government-imposed wage hikes will:
- Accelerate automation
- Cause entry level jobs to disappear
- See people laid off or jobs phased out
- Hurt the poor and mentally/physically challenged the most
- Lower investment capital and economic growth
And there are other unintended consequences, too:
Higher costs for goods and services, once again hurting the poor the most.
Take fast food.
You may have heard—Wendy’s, like other restaurants, is phasing out cashiers and replacing them with I-pads to order food.
Here is a chart showing before and after projections for what a minimum wage hike will do:
|Restaurant||Food Item||Price Before Wage Hike||Price After Wage Hike|
|McDonald||10-piece Chicken McNuggets||$4.49||$6.20|
|Starbucks||Grande Mocha Frappuccino||$4.56||$6.29|
|Subway||6-inch Turkey Sub||$4.25||$5.87|
|Burger King||Whopper Meal||$6.49||$8.96|
|Taco Bell||Crunchwrap Supreme,|
Crunchy Taco, and large drink
|Chik-Fil-A||Chicken Sandwich Combo||$5.95||$8.21|
|Pizza Hut||Medium Hand-Tossed|
What do you think? Email me at [email protected].