Low Wage, or No Wage

The Story

Socialist congressional candidate Alexandria Ocasio-Cortez lamented the news that a hip Union Square restaurant at which she once worked is closing. The Coffee Shop, a downtown fixture, is shutting its doors in part because the minimum wage is going up, and the owner can’t afford to pay all his workers the new mandated rate. Ocasio-Cortez, who supports higher minimum wages, should listen to what business people like her former boss are saying: minimum-wage regulation is a job killer.

The Facts You Need to Know

  1. Lower: Available evidence suggests that minimum-wage laws, which mostly affect younger and unskilled workers, have a negative effect on black and Latino employment. Read more.

  2. Tips: Mandating that tipped restaurant workers receive the same minimum wage as untipped workers will result in higher prices, less employment–and lower tips. Read more.

  3. Business: A higher minimum wage is just one of the many regulatory obstacles to running a small business in New York City. Read more.

“As different kinds of laboring power have different values, or require different quantities of labor for their production, they must fetch different prices in the labor market.”

Karl Marx

Twitter Take

The Past is Present

Teenage Wageland By Jared Meyer (May 20, 2015)

“Los Angeles cuts off a rung of its economic ladder.”

And in other news...

“Electric scooters could be the newest ride to hit the streets — just in time for the L train shutdown.”