Saturday, July 23, 2016

Who’d a-thunk it? Raising the minimum wage has real consequences for small businesses?

From Mark Perry.
"Some recent examples of fallout from increases in the minimum wage in California (eventually to $15 an hour):

1. Sacramento’s “Almost Perfect Bookstore” is closing its brick-and-mortar store due to rising labor costs from the “Way-Far-From Perfect $15 Minimum Wage Increase” in California, see details here.

2. Iconic LA Diner Pann’s (est. 1958) To Stop Serving Dinner, Cites Rising Minimum Wage As Factor, see details here and here.

MP: What an amazing finding that when you increase labor costs by 67% for entry-level workers (from $9 an hour to $15 by 2022) that some small businesses in California have a hard time surviving? Too bad there’s not any economic theory (nor any empirical evidence) that could have predicted that outcome!"

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