Tag: wages

Dining Out on Cause and Effect

Post author By Redactor
Post date April 4, 2024
3 Comments on Dining Out on Cause and Effect

California, minimum wage, hamburgers, economics, wages, jobs

Could a barren, charred, devastated landscape be the actual intended goal?

In California as in Washington, lawmakers and chief executives apparently have a long list of nice things to destroy and are crossing them off one by one, as if on the payroll of aliens from outer space wanting to conquer earth without doing very much conquest-work themselves.

Part 99‑C of the plan is to price entry-level labor and entry-level restaurant dining out of the market by hiking the minimum wage of fast-food workers even further beyond the market rate for the labor and its actual productive value to employers: now to $20 an hour.

Already, prices for restaurant meals are going up, and restaurant workers are being laid off.

The $20 minimum is a compromise that restaurant owners accepted in lieu of probably paying a $22 per hour minimum. Like letting burglars take only most of the silverware and letting them return at will.

Even more looting of employers is to come, if employee and activist Angelica Hernandez has her way. “We’re going to have to keep speaking up and striking to make sure we are heard.” She wants her dough and doesn’t care about the consequences for others. Policymakers rush to appease her and those like her.

So is omni-destruction the actual intended goal?

Or is it that the mental powers of the crusaders and politicians and too many voters don’t extend so far as the relationship between cause and effect?

This is Common Sense. I’m Paul Jacob.

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Tags California, economics, jobs, minimum wage, wages

Accountability folly free trade & free markets general freedom initiative, referendum, and recall nannyism national politics & policies property rights responsibility too much government

Minimum Shock

minimum wage, closure, restaurant, business, prohibition, wages, pay, Berkeley, San Francisco

“Three restaurants vacated the Bay this week, with Berkeley’s Bistro Liaison getting the most attention,” the San Francisco edition of Eater informs us. “It’s a bittersweet exit for the owners, who plan to start new careers.”

The week in question was in February. But this was not an isolated event. Sixty-four Bay-area restaurants and fast food joints closed their doors this last winter.

That is a lot of closures.

Why?

Every eatery has a different story, but the entry December 17* provides a big clue: minimum wage hikes.

Citizens should hardly be surprised. They got what they asked for. The minimum wage went up to $13.00 per hour last July, and will go up another two bucks next year. And this was the result of a citizen initiative. “On November 4, 2014, San Francisco voters passed Proposition J, raising the minimum wage to $15.00 by 2018,” the City Office of Labor Standards and Enforcement tells us.

And the thing about minimum wage laws is that they do not — either by magic or by law — directly raise any wages. They, by law and quite directly, prohibit wage contracts below the minimum established.

Businesses then react, struggling to accommodate the newly imposed costs. Sometimes they keep all their employees and economize on other inputs, but often they must re-arrange hours and workers and whole production schemes.

If hemmed in elsewhere, they just go out of business.

Just as one should expect, according to the law of supply and demand.**

Citizens might wish to reconsider. That is, initiate a measure to repeal a previously successful initiative … that gave us this unsuccessful policy.

This is Common Sense. I’m Paul Jacob.

* The entry reads thusly: “OAKLAND — alaMar Kitchen and Bar as you know it is shuttering on December 17, but will reopen in the new year with a fast casual format. The owner points to minimum wage raises and the cost of doing business in the Bay Area as the reasons cited for the closure/change.”

** It is often said that businesses just “raise prices” and “pass along the costs” to consumers in general, but, for reasons of supply and demand, they cannot do this without decreasing sales and thus revenue.

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Tags Berkeley, business, closure, minimum wage, pay, prohibition, restaurant, San Francisco, wages

folly general freedom ideological culture nannyism national politics & policies too much government

The Hypocrisy Gap

wage gap, pay gap, sexism, Equal Pay Day, illustration

You may have missed it. I wasn’t so lucky. This past Tuesday was “Equal Pay Day.”

“[T]he typical woman who works full-time earns 79-cents for every dollar that a typical man makes,” President Barack Obama said, repeating what we have already been told ad nauseum about the “wage gap” between men and women.

The “detailed calculation” used to determine this “gender wage gap”?

“Experts” simply added up all the money earned by all the men and all the women (subcategoried) and then divided by the number of men and women, respectively. No accounting for

the actual jobs performed,
hours worked,
education,
risk,
work history

… or any other factor.

Using this statistic make sense if all people — brain surgeons and taxi drivers alike, having worked every day for the last 40 years or re-entering the workforce after decades away — should earn the exact same amount.

Communism.

It is already illegal to pay a woman less than a man for the same work. Yet, on the WhiteHouse.gov page entitled, “This Is Why Today is Equal Pay Day,” the prez says “we must rid our society of the injustice that is pay discrimination.” The website insists that, Obama “has made equal pay a top priority.”

Then, why does a pay gap exist between the men and women working for Mr. Obama? According to the Washington Post, “The White House has not narrowed the gap between the average pay of male and female employees since President Obama’s first year in office …”

The good news? Equal Pay Day is over.

This is Common Sense. I’m Paul Jacob.

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Tags Equal Pay Day, equal protection, gender pay gap, sex equality, wages

Accountability crime and punishment ideological culture moral hazard nannyism national politics & policies too much government

Misleading Metric

pay gap, gender, legislation, justice, fairness, hypocrisy, Sen. Susan Lee

Yesterday’s Washington Post clarified how the “gender pay gap” is calculated:

This metric does not take into account the different types of jobs, varying levels of experience and education, or women who lose seniority and promotion opportunities when they leave the workforce temporarily to care for children, which they do in larger numbers than men. Still, it is widely used as a measuring stick.

The Post informed readers that the gap isn’t what it appears, that it doesn’t actually measure discrimination against women. Nonetheless, the paper justifies promoting this misleading statistic with the claim that it is “widely used.”

Sort of a self-fulfilling prophecy.

The Post’s story was sparked by legislation in Maryland to purportedly mandate “equal-pay” between men and women. Yet, the bill specifically authorizes unequal pay for any “bona fide factor other than sex or gender identity.”

It’s already against the law for employers to pay women less for the same job or to deny equal opportunity for advancement. This legislation, on the other hand, seems designed to create full-employment for lawyers. If passed, employees could sue their employer for “assigning work less likely to lead to promotion or future opportunities.”

Sen. Susan Lee, the bill’s sponsor, proclaims that, “Any gap is unequal and unacceptable.”

What about the gender pay gap in the Maryland Legislature? Using the same misleading metric, female legislative employees make less than what males make.

Unacceptable!

So, why don’t legislators fix their own pay discrepancy before they dictate to everyone else?

Or better yet, they could simply stop peddling a divisive non-solution for this dishonestly hyped “problem.”

This is Common Sense. I’m Paul Jacob.

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Tags feminism, gender pay gap, Sen. Susan Lee, sex equality, wage legislation, wages

national politics & policies too much government

Comparable Worth?

The federal government encourages a certain “spin” regarding wages and salaries. Both taxation and regulation enforce a kind of accounting fraud in nearly all wage contracts. Employees receive a statement when they get paid, but that statement is not complete. Only half of an employee’s Social Security contributions are listed, for example — though, from the employers’ point of view, that unlisted “employer’s contribution” is just as much a part of a workers’ wage as the amount written on the check.

Most folks don’t see a full dollar-value listing of their benefit package at time of payment, either.

Of course, some things just can’t be accounted for in money terms.

In charming, smaller towns — like, say, Traverse City, Michigan, or Port Townsend, Washington — folks have been known to explain those towns’ somewhat depressed wage rates with a rhyme: “The view of the bay is part of your pay.”

And then there’s job security.

In a 2012 report comparing private sector jobs to federal government jobs, the benefit of public sector job security went unacknowledged. Naturally enough.

What we learn is that government employees tend to make a bit more that private sector employees, but, when you include benefit packages, their rates of remuneration are much higher — 16 percent higher.

But then, if to prove that the government really is all about equality, it’s not at the top end that government workers prove wildly overpaid; it’s at the less-credentialed “low end.” These job pay 36 percent more than comparable private sector jobs.

What is often not addressed in the wage and benefit debate is the fact that lower-skilled private sector workers are also disproportionately harmed by federal regulation, subsidies and other misguided policies.

This is Common Sense. I’m Paul Jacob.