The High Cost of Minimum Wage

The Story

Photo: Spencer Platt/Getty Images

Mayor de Blasio and others tout the $15 minimum wage in New York City as an example for the nation. Though individual workers undoubtedly appreciate the boost in pay, many businesses are struggling with the increased costs. And when government mandates a wage floor, it’s not just business owners who will pay the price.

The Facts You Need to Know

  1. DIY: Higher restaurant wages lead to subtle changes, including asking customers to bus their tables or automating aspects of service. Read more.

  2. Less: Restaurant employment in New York City shrank last year, which normally happens only during recessions. Read more.

  3. Tough: Raising the minimum wage makes it harder for unemployed low-skilled workers to find jobs, because employers have a broader supply of applicants to choose from. Read more.

“When minimum-wage levels are set without regard to their initial productivity, young people are disproportionately unemployed—priced out of jobs.”

Thomas Sowell

Twitter Take

The Past is Present

A Killer Of A Living Wage By E. J. McMahon (March 20, 2002)

“As if New York’s economy wasn’t already stressed enough, there’s a renewed push in the City Council for a local “living wage” law that could hinder the city’s economic renewal while reducing job opportunities for the very people it is supposed to help.”

And in other news...

“Stay granted on city’s plan to make corridor for buses, trucks.”