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The $15 minimum wage has gone into effect in New York City, to the delight of progressives and labor advocates who lobbied for it. But collateral effects are already being felt—restaurants, in particular, have cut back on hiring. The new, higher minimum wage makes it next to impossible for the young and unskilled to get jobs because most of these workers cannot create value in excess of that amount, giving employers little incentive to hire them.
The Facts You Need to Know
Shrinking: Full-time restaurant employment in New York City fell by 1.7% in 2018, even as the city economy expanded. Read more.
Robot: Rising minimum wages encourage companies to cut back on staff and automate as many functions as possible. Read more.
Jobs: The $15 minimum wage is projected to eliminate 200,000 jobs statewide. Read more.
“Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage…”
The Past is Present
“When the government gets involved in setting wage levels, it cuts off the lowest rungs on the economic ladder, making it harder for the poor to find work. The benefits of such laws accrue mostly to those who already have jobs.”
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“New York City is running up against a cap for new charter schools, and advocates want Gov. Cuomo and the state Legislature to enact a law this year to lift or abolish the limit.”