The author discusses the impact of government-mandated minimum wage increases on businesses and employees in states like Minnesota and California. The use of automation and self-service kiosks is becoming more prevalent as a way for businesses to cope with higher labor costs. In Minneapolis, the airport has adopted self-service kiosks in response to the city’s $15.57 minimum wage requirements, and in California, a law has raised the minimum wage for fast-food workers to $20 an hour. The author argues that these interventions distort the marketplace and lead to job losses, as seen in the case of Uber and Lyft leaving Minneapolis due to the minimum wage mandate for drivers.
The economic impact of minimum wage hikes is evident in California, where fast-food chains like Pizza Hut have announced plans to cut jobs in response to the $20 minimum wage law. Businesses are forced to downsize, reduce hours, and raise prices to stay afloat, resulting in negative consequences for both employees and consumers. The author highlights the case of a Panera Bread franchise owner who initially sought an exemption from the law but ultimately complied with the higher wage requirements after public backlash. The author questions the effectiveness of artificially inflated wages and suggests that government intervention undermines the purpose of minimum wage jobs as entry points into the workforce.
The article criticizes government intervention in the private market and argues that minimum wage increases ultimately hurt workers and businesses. The author emphasizes the importance of the private sector operating without government interference, as excessive regulation can lead to unintended consequences such as layoffs and reduced opportunities for inexperienced workers. The author highlights the competitive job market and low unemployment rates as factors that give workers more options and the ability to seek better opportunities if dissatisfied with their current wages or working conditions.
The article also discusses Senator Bernie Sanders’ proposal for a 32-hour workweek with no reduction in pay or benefits for employees. The author points out the potential costs and challenges that employers would face in implementing such a policy, including the need to hire more workers or risk decreased productivity. The author argues that Sanders’ proposal, like other government interventions in the workforce, would have negative consequences for businesses and consumers. Overall, the article emphasizes the importance of market-based wages and minimal government interference in order to promote a healthy economy and job market for all stakeholders.
