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California fast-food workers’ minimum wage win stirs up old economic debate
(www.theguardian.com)
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this post was submitted on 06 Apr 2024
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If someone says that this will reduce hours, and cause layoffs, you know that they are bullshitting.
Why would they add to minimum wage increase and reduce their profit? Might as well declare bankruptcy.
As for prices, they usually are set not by how much it costs to produce something, but how much a customer will pay. They might increase prices if they are below the cost of production, but again they are dictated by the customer. If they can't the business would go bankrupt.
They didn't mention about going out of business, so it is kind of clear that this is a lot of hot air and they really just comparing about earning less.
There's one thing I didn't mentioned related to employees. It is automation that could replace them. The thing with that is that whenever they can, those companies would do that anyway.
Workers aren't choosing their hours though so yes they can have reduced hours. The supervisor might also be told to do with less manpower. Its like how when you go to a small boba or coffee shop and there is 1 person doing everything.
As for automation that is almost 100% going to happen and is already happening. From automated server to burger flipper to drive thru attendant it's all being tried.
You're talking as if they weren't working with minimum staff already. If they could cut staff more (even without this change) they would do so already.
Yeah, but again, this would happen with or without minimum wage increase. For the owners even if they would have to pay $6/hour that would still make them complain that it is too much.
What politicians should work on is to introduce tax on automation, and all the income from it should go toward UBI.