And so SDP continues their populist call for minimum wage.
Minimum wage does not lift people out of poverty. People can be lifted out of poverty only through education, training, acquisition of relevant skills and be gainfully employed.
Every round of raising the minimum wage without any corresponding rise in productivity is added costs for doing business.
Businesses respond to the added costs by reducing the number of workers they hire or trimming costs in other areas including reducing job training opportunities for the low-skilled worker. In the long run, they turn to automation as the alternative. Some simply pull the shutters down and call it a day.
Thus minimum wage, instead of lifting the low-skilled or unskilled worker out of poverty, renders them more vulnerable to being unemployed and irrelevant.
In the US, Seattle's $15 minimum wage law will soon take effect on 1 April 2015. But restaurants across the city are already making the financial decision to close.
Washington Policy Center writes that the city is experiencing a rising trends in restaurant closures.
[The closings have occurred across the city, from Grub in the upscale Queen Anne Hill neighborhood, to Little Uncle in gritty Pioneer Square, to the Boat Street Cafe on Western Avenue near the waterfront.
The shut-downs have idled dozens of low-wage workers, the very people advocates say the wage law is supposed to help. INSTEAD OF DELIVERING THE PROMISED 'LIVING WAGE' OF $15 AN HOUR, ECONOMIC REALITIES CREATED BY THE NEW LAW HAVE DROPPED THE HOURLY WAGE FOR THESE WORKERS TO ZERO.
Restaurants close for many reasons, but Seattle has an added a unique factor. Seattle Magazine reports, “...another major factor affecting restaurant futures in our city is the impending minimum wage hike to $15 per hour.” About 36% of restaurant earnings go to paying labor costs.] - Washington Policy Center
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