Minimum Wage

Fight For $15 Meets Reality: D.C. Restaurants Lost 1,400 Jobs During First Half of 2016 - Hit & Run : Reason.com


Washington, D.C., is getting a real life lesson in economics as the city moves closer to implementing a $15 per hour minimum wage.

During the first six months of 2016, restaurants in D.C. shed 1,400 jobs. That`s a 2.7 percent decline in food service jobs in just six months, the largest drop seen in that sector in more than 15 years. Even during the 2008 recession, restaurant jobs barely dipped before continuing a steady, decades-long rise in Washington.
 
I wonder if the job loss will be short term though. When everyone gets used to the idea and the reality prices will go up so employers will hire more workers or implement more automation to do their jobs. I`ve noticed some McDonalds restaurants using automated ordering inside of the restaurant. Automation creates jobs, just in a different sector. Restaurants have the "low hanging fruit" of disposable jobs and are the first to go along with supermarket checkers.
 
I am not surprised there is some loss especially due to the significant wage increase so an instant hit to bottom line. The lowest pay group usually gets axed or hours get cut back first when costs/losses (wages, food, energy, bad management, you name it, etc) go up until the business reaches a new equilibrium and decide if they need more people.

Have you seen the price of beef these days?
 
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