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Hike in minimum wage prompts more closings of San Francisco restaurants
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Anonymous Coward |
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From the article:
"The impact on exit is concentrated among lower quality restaurants, which are already closer to the margin of exit. This suggests that the ability of firms to adjust to minimum wage changes could differ depending on firm quality," the study found. The higher-rated restaurants can adjust, primarily through working their employees harder.
Higher minimum wages also reduce the rate at which new restaurants open by 4-6 percent per $1 increase in the minimum, the study found."
So the "lower quality" restaurants are being forced out (i.e., cheaper food for people that can't afford a 5* meal). So those with a lower/moderate income are eventually forced out of the city (same with housing prices) leaving only the affluent. Another liberal logic fail. Prices/wages should be allowed to seek their own level in any market. Any intervention on either side simply creates unintended consequences.
Quoting: Anonymous Coward 39798181 And who EXACTLY determines "firm quality?" Otherwise, that's a great analysis. Quoting: Dick Tracy I think that is their "PC" way of saying McD's vs the Bistro.
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