The $15 minimum wage was supposed to hurt New York City restaurants -- but both revenue and employmen

[jpak]

The $15 minimum wage was supposed to hurt New York City restaurants — but both revenue and employment are up

https://www.marketwatch.com/story/the-15-minimum-wage-was-supposed-to-hurt-new-york-city-restaurants-but-both-revenue-and-employment-are-up-2019-10-28

Critics would have you believe that upping the minimum wage in restaurants will lead to massive layoffs and closures. But since raising the minimum wage to $15 per hour nearly a year ago, the restaurant industry in New York City has thrived.

I’m a professor with a focus on labor and employment law. My research on the minimum wage suggests a few reasons why this might be true.

What hasn’t happened
When worker pay goes up, employers can respond in a number of different ways. They can cut hours, lay off workers, accept smaller profits or raise prices.

With profits so low in the restaurant industry, averaging just 3%-5%, employers may not have the option to accept less in profits without going in the red.

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[moondust]

1. Wow.

You mean to say that more people with enough discretionary income to dine out may actually help the restaurant business?

[Johnny2X2X]

2. The idea that businesses cannot afford a living wage is rubbish

For most of modern American history small businesses thrived while paying their workers enough to live on. What the rich have gotten American workers to accept is disgusting. And that they've gotten regular workers to think other workers don't deserve a decent living for their labor is criminal.