Monday, August 10, 2015

Another Minimum Wage Backfire. Wendy’s explains what mandated wage hikes do to jobs at burger joints.

The Wall Street Journal reports:
President Obama has frequently demanded an increase in the federal minimum wage to $10.10 from $7.25. Meanwhile, dozens of states have set minimum wages above the federal level and politicians from Seattle to New York are congratulating themselves for taking it all the way to $15. Maybe they should look back at the workers they’re leaving behind on their march to progressive-landia. Make that ex-workers.

Last week the Wendy’s Company did a public service on its second-quarter earnings call by explaining how mandated wage hikes will lead to fewer jobs for the low-skill workers that progressives claim to be helping.

First, CFO Todd Penegor talked about the pressure to pay higher wages and said that “we continue to look at initiatives and how we work to offset any impacts of future wage inflation through technology initiatives, whether that’s customer self-order kiosks, whether that’s automating more in the back of the house in the restaurant. And you’ll see a lot more coming on that front later this year from us.”
The demand for labor is always a downward sloping curve. Always.