…is also a cost to labor. Minimum wage mandates took effect at the start of the year in 18 States and in 20 cities. These mandates have drastically raised the cost to labor.
Late Monday, casual dining chain Red Robin Gourmet Burgers (RRGB) announced that it would eliminate bus boys at 570 restaurant locations, a move that is expected to save the company an estimated $8 million over the course of the coming year. The company’s chief financial officer said the decision was made in order to “address the labor increases we’ve seen.”
Those busboys can thank their respective Progressive-Democratic politicians for the wage increase they can enjoy not having. They also should remember this largesse in the coming primary season and again this fall.
There’s another cost to labor, one that is far longer lasting, and so far more devastating to us citizens and the economy in which we must operate. Michael Saltsman, Employment Policies Institute Director, addressed the problems faced by our teenagers and other first-time workers:
I think the loss, as the minimum wage goes up…[is the] hollowing out of entry-level opportunities[.]
Without that entry-level experience—not only in a particular job, but in the nature of having a job, the ethic of work—how will our first-timers get the next-level job? How, indeed, will they even get any entry-level job when they’re being priced out of the starter market?