Occasionally I'll write a journal of my personal thoughts. What will they be about? That will remain a secret until it's written. You can comment on it by sending me an e-mail at dabrown_ii@hotmail.com.

BIG BUCKS…FOR SO LITTLE EFFORT?!

We’ve been hearing about fast-food workers wanting to start off at $15.00 per hour because it’s a livable wage, would supposedly draw more employment, and get people out of poverty with the Democrats supporting it. But at what cost?

I’ve noticed some fast-food restaurants with help-wanted posters showing that they would pay at least $15.00 per hour but only the drive-through was open. If fast food workers are to start off at $15.00 per hour, who would be next? Grocery store courtesy clerks? Private security guards? Retail cashiers?

The federal minimum wage has been at $7.25 per hour since the Fair Minimum Wage Act of 2007 was passed. Michigan’s minimum wage is currently at $13.73 per hour and is expected to increase to $15.00 per hour in 2027. The only argument that the fast-food workers have is that it’s impossible to raise a family on minimum wage. With the Democrats supporting fast-food workers starting off at $15.00 per hour, more of a negative effect would be expected.

There would be fewer workers and an increased use of automation. Customers will place orders online with other machines preparing the food. This would result in the deficit in the federal budget increasing by $54-billion and the overall economic output declining.

In 2018 over 500 Red Robin restaurants eliminated the bus boys after raising its minimum wage.
In 2014 the city of Seattle, WA raised its minimum wage to $15.00 per hour at a cost of over 6,000 jobs with other workers losing an average of about $1,500 per year.
When New York City raised its minimum wage, over 1,000 restaurants closed. There had been talk about adding a surcharge to help them to stay in business.
McDonald’s, Burger King, and Panera Bread have been using electronics for customers to place orders and to deliver the food to them.

Labor costs would be passed on to the product. Nobody wants to pay $25 for a fast-food meal, $10 for a loaf of bread or a gallon of milk, or $250 for a pair of Dockers. This would result in decreasing sales and profits (the economic output), reduction of business hours, layoffs, and the business eventually closing. Kura Sushi, The Cheesecake Factory, and Texas Roadhouse had to raise their prices in order to keep up with the wage hikes.

It would undermine those who work high-paying jobs and have the skills, the knowledge, and experience of the labor market. How difficult is it to flip hamburgers, bag groceries, or observe and record happenings on a retail store parking lot? Some of those who work in fast-food restaurants are just starting in the labor market. It takes education and work to develop a marketable skill for quality-paying jobs.

What the fast-food workers and the Democrats fail to understand is that with the drastically increased minimum wage payouts, unsustainable rising costs by employers would follow. This would lead to an increase of the unemployment rate and poverty.