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New Yorkers Shocked To Find Food Prices Rising After Minimum Wage Hike​

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New Yorkers Shocked To Find Food Prices Rising After Minimum Wage Hike​​

https://hotair.com/archives/2019/01...ed-find-food-prices-rising-minimum-wage-hike/
The result of the Fight for 15 movement in New York City has finally gone into effect. The minimum wage jumped by 15% in many cases, to $15 per hour this month. This mostly affects employers of lower skill level workers, particularly in the food service and beverage industries. And now that labor costs have risen, restaurants from fast food joints to upper-end fine dining establishments have raised their prices. As a result, some people have had to make adjustments in their budgets and lifestyles, going out to eat less often and bringing their own lunches to work.
As you might imagine, that’s not only been annoying for the customers. It’s impacting the restaurant business as well. (NY Post)
New York City’s hotly contested minimum wage increase to $15 — up from $13 or $13.50, depending on employer size — rolled out citywide at the start of the year. And although that’s good news for NYC restaurant servers, patrons are grumbling about its impact on menu prices at their favorite eateries.
Ahead of the wage hike, the NYC Hospitality Alliance conducted a survey of 574 local food establishments in late 2018. They found that 87 percent of respondents planned to increase menu prices this year to offset the minimum wage bump. True to their promise, the cost of food has risen at various spots around the city.​​
Holy cow. Who could have seen that coming? Well… pretty much everybody. And that includes the Democrats who passed the $15 per hour minimum wage bill. How did they plan on offsetting the significant bump in dinner bills? By eliminating tipping for the wait staff. That idea went over like a lead balloon and was quickly abandoned by a number of eateries that tried it.

~~~~~~
Really!! Is anyone surprised? This happens EVERY TIME you hike the minimum wage for your socialist schemes. But supposedly THIS time would be different because the right people were in charge, RIGHT?!
Indeed, those Progressive Democrats either did not take any or slept through basic economics classes in school. If raising the minimum wage for service industry workers won't impact those businesses, then NOT raising it will have no impact on the workers, right?
Progressive Democrats majority in Congress is the next step to Venezuela's economy.
 
Hotair is not a good source. notice, it didn't actually source any of it's claims. Things go up yearly, no matter what.

claims that it isn't verifiying

1) New Yorkers are shocked.
2) How much the rate of increase was.
3) How does that compare to years the minimum was did not go up.
4) How does that increase compare with the rest of the country.
 
New Yorkers Shocked To Find Food Prices Rising After Minimum Wage Hike​​

https://hotair.com/archives/2019/01...ed-find-food-prices-rising-minimum-wage-hike/
The result of the Fight for 15 movement in New York City has finally gone into effect. The minimum wage jumped by 15% in many cases, to $15 per hour this month. This mostly affects employers of lower skill level workers, particularly in the food service and beverage industries. And now that labor costs have risen, restaurants from fast food joints to upper-end fine dining establishments have raised their prices. As a result, some people have had to make adjustments in their budgets and lifestyles, going out to eat less often and bringing their own lunches to work.
As you might imagine, that’s not only been annoying for the customers. It’s impacting the restaurant business as well. (NY Post)
New York City’s hotly contested minimum wage increase to $15 — up from $13 or $13.50, depending on employer size — rolled out citywide at the start of the year. And although that’s good news for NYC restaurant servers, patrons are grumbling about its impact on menu prices at their favorite eateries.
Ahead of the wage hike, the NYC Hospitality Alliance conducted a survey of 574 local food establishments in late 2018. They found that 87 percent of respondents planned to increase menu prices this year to offset the minimum wage bump. True to their promise, the cost of food has risen at various spots around the city.​​
Holy cow. Who could have seen that coming? Well… pretty much everybody. And that includes the Democrats who passed the $15 per hour minimum wage bill. How did they plan on offsetting the significant bump in dinner bills? By eliminating tipping for the wait staff. That idea went over like a lead balloon and was quickly abandoned by a number of eateries that tried it.

~~~~~~
Really!! Is anyone surprised? This happens EVERY TIME you hike the minimum wage for your socialist schemes. But supposedly THIS time would be different because the right people were in charge, RIGHT?!
Indeed, those Progressive Democrats either did not take any or slept through basic economics classes in school. If raising the minimum wage for service industry workers won't impact those businesses, then NOT raising it will have no impact on the workers, right?
Progressive Democrats majority in Congress is the next step to Venezuela's economy.

Pretty disappointing article. OK, so from what I can tell on average labor is roughly 30% of the typical restaurant's costs. So if 30% of costs goes up by 15% (which was the maximum), total costs go up 4.5%. But that's assuming every employee made minimum wage, which they don't, so it's somewhat less than that, perhaps 3%. Inflation last year was 2%. Wonder what rent inflation was in NYC on average? Food cost inflation?

I don't know the impact, but I hate articles that treat people like morons. The reporters apparently interviewed people, who describe food prices going up by as much as 20%, blaming it on the MW increases, and didn't ask the follow up - if your costs for labor are going up 3% because of MW changes, why do you need price increases of 20% to make you whole? If the answer is "rent increases went up 20% in Manhattan on this corner lot" then blaming it on minimum wages might look kind of stupid, or at best only a partial story.

I'm not the biggest fan of MW increases but the evidence on their impacts is pretty mixed and so-called 'analyses' that give a partial story of the impact don't do anyone any good.
 
Minimum wage went up here 3 weeks ago. lol...In 3 weeks because it went up .70 in most of the state so prepare for Armageddon...

I find it disgusting how often Trumpsters here and Cons defend the rich but always, ALWAYS dump on the little guy, the working people. 70 cents???? My God..

As far as the bigger raise in NYC.. Ever try to live in NYC? 1 of the most expensive places in the world, and it's been that way loooooong before mw HIKES.
 
Hotair is not a good source. notice, it didn't actually source any of it's claims. Things go up yearly, no matter what.

claims that it isn't verifiying

1) New Yorkers are shocked.
2) How much the rate of increase was.
3) How does that compare to years the minimum [wage] did not go up.
4) How does that increase compare with the rest of the country.

Please....:roll: You only need to know those things if you're worried about the actual impact instead of selling a narrative ==> MW increases BAD!!
 
New Yorkers Shocked To Find Food Prices Rising After Minimum Wage Hike​​

https://hotair.com/archives/2019/01...ed-find-food-prices-rising-minimum-wage-hike/
The result of the Fight for 15 movement in New York City has finally gone into effect. The minimum wage jumped by 15% in many cases, to $15 per hour this month. This mostly affects employers of lower skill level workers, particularly in the food service and beverage industries. And now that labor costs have risen, restaurants from fast food joints to upper-end fine dining establishments have raised their prices. As a result, some people have had to make adjustments in their budgets and lifestyles, going out to eat less often and bringing their own lunches to work.
As you might imagine, that’s not only been annoying for the customers. It’s impacting the restaurant business as well. (NY Post)
New York City’s hotly contested minimum wage increase to $15 — up from $13 or $13.50, depending on employer size — rolled out citywide at the start of the year. And although that’s good news for NYC restaurant servers, patrons are grumbling about its impact on menu prices at their favorite eateries.
Ahead of the wage hike, the NYC Hospitality Alliance conducted a survey of 574 local food establishments in late 2018. They found that 87 percent of respondents planned to increase menu prices this year to offset the minimum wage bump. True to their promise, the cost of food has risen at various spots around the city.​​
Holy cow. Who could have seen that coming? Well… pretty much everybody. And that includes the Democrats who passed the $15 per hour minimum wage bill. How did they plan on offsetting the significant bump in dinner bills? By eliminating tipping for the wait staff. That idea went over like a lead balloon and was quickly abandoned by a number of eateries that tried it.

~~~~~~
Really!! Is anyone surprised? This happens EVERY TIME you hike the minimum wage for your socialist schemes. But supposedly THIS time would be different because the right people were in charge, RIGHT?!
Indeed, those Progressive Democrats either did not take any or slept through basic economics classes in school. If raising the minimum wage for service industry workers won't impact those businesses, then NOT raising it will have no impact on the workers, right?
Progressive Democrats majority in Congress is the next step to Venezuela's economy.

They're pretty dense if they can't figure out why they are picking up a larger tab at their favorite restaurant. It should also come as no surprise to know that many of these $15 dollar min. wage jobs could be lost as wages increase too much. Increasing the minimum wage too much will also result in job losses (CBO, 2014).
In 2016, Gov. Jerry Brown signed a bill that put the state minimum wage on track to reach $15 per hour by 2022. The next increase—from $10.50 to $11.00—is scheduled for Jan. 1, 2018. If you're a business in one of thirteen different California localities--from Mountain View to Milpitas, and from San Jose to Santa Clara--the required wage floor will rise even higher.

When he signed $15 into law, Gov. Brown seemed to understand that the increase was a bad idea, acknowledging that "economically, minimum wages make not make sense." Today, California's good intentions are catching up with it.

The warning signs started early; dozens of stories chronicled businesses closing, cutting staff, or leaving the state. A rash of restaurant closures in the Bay Area led one food-industry publication to describe it as a "death march." Even child-care providers were hurt. (Some of the closures are featured in the video below.) A team of economists at Harvard Business School and Mathematica Policy Research determined that the rising minimum wage in the Bay Area contributed to these closures.

Why The $15 Minimum Wage Will Cost California 400,000 Jobs
 
They're pretty dense if they can't figure out why they are picking up a larger tab at their favorite restaurant. It should also come as no surprise to know that many of these $15 dollar min. wage jobs could be lost as wages increase too much. Increasing the minimum wage too much will also result in job losses (CBO, 2014).

Why The $15 Minimum Wage Will Cost California 400,000 Jobs

I don't have any reason to doubt the research but there's a problem. We know that wages on the bottom have stagnated over the decades, and we know that minimum wage workers in high cost places like much of CA and NYC can't make ends meet on their MW jobs. So the 'correct' economic solution to that is for the state to directly subsidize those workers as opposed to jamming through MW increases and forcing businesses to make up the shortfall. That's more efficient, leads to fewer distortions in the market, has less impact on jobs, businesses, etc.

The problem is when conservatives oppose MW increases AND Medicaid expansion, AND the EITC AND food stamps, AND rent assistance - any form of welfare in general. Well, what are people on the bottom supposed to do? I'd be fine with opposing MW increases as long as those working those jobs are able to make ends meet using other forms of income redistribution - let's call it what it is.

But those require taxes, and everyone hates higher taxes and the GOP won't ever support higher taxes, so in the alternative people pass MW increases because it's an indirect tax paid for by all consumers and in part low wage workers (if we believe some of the research on job losses associated with MW increases). It's perhaps not the best alternative, but when other alternatives are closed off by political realities, no surprise that people turn to what CAN be done.
 
This is nothing that another few million uneducated and unskilled illegal foreign immigrants who will work off the clock for less than minimum can't solve.
 
I don't have any reason to doubt the research but there's a problem. We know that wages on the bottom have stagnated over the decades, and we know that minimum wage workers in high cost places like much of CA and NYC can't make ends meet on their MW jobs. So the 'correct' economic solution to that is for the state to directly subsidize those workers as opposed to jamming through MW increases and forcing businesses to make up the shortfall. That's more efficient, leads to fewer distortions in the market, has less impact on jobs, businesses, etc.

The problem is when conservatives oppose MW increases AND Medicaid expansion, AND the EITC AND food stamps, AND rent assistance - any form of welfare in general. Well, what are people on the bottom supposed to do? I'd be fine with opposing MW increases as long as those working those jobs are able to make ends meet using other forms of income redistribution - let's call it what it is.

But those require taxes, and everyone hates higher taxes and the GOP won't ever support higher taxes, so in the alternative people pass MW increases because it's an indirect tax paid for by all consumers and in part low wage workers (if we believe some of the research on job losses associated with MW increases). It's perhaps not the best alternative, but when other alternatives are closed off by political realities, no surprise that people turn to what CAN be done.

I can respect what you are saying, but for every action that makes it harder for businesses to do business in the state due to increasing costs and overhead, there is a consequence.
CA. loses a lot when they don't collect the needed tax revenue when thousands of businesses literally vacate the state for a friendlier business climate.
Take a look...
California Companies Flee Business-Hostile State In Droves

California's business environment has gone from bad to worse, with thousands of businesses pulling up stakes and moving elsewhere. But don't take our word for it. Just ask the 1,800 companies that either relocated or "disinvested" in the formerly Golden State in 2016.

A new report from business-relocation expert Joe Vranich says that the business climate has gotten so bad that, for the first time ever, he is actively telling clients "to leave the business-hostile state because its business climate continues to worsen."

And, no, he isn't a hypocrite. He's followed his own advice. Earlier this year he relocated his own successful consulting business from Irvine, California to Cranberry Township, Pa., a suburb of Pittsburgh.

Maybe that shouldn't come as a surprise. It's not exactly news that California's legislature is the most left-wing, high-tax and business-unfriendly in the nation. California is a virtual one-party state. Lawmakers and regulators recently even tried to tax cellphone texts, but pushback from voters made them drop the plan just this week.
 
Hotair is not a good source. notice, it didn't actually source any of it's claims. Things go up yearly, no matter what.

claims that it isn't verifiying

1) New Yorkers are shocked.
2) How much the rate of increase was.
3) How does that compare to years the minimum was did not go up.
4) How does that increase compare with the rest of the country.

This entire story is bogus. Simple and plain. Restaurants in NYC priced too high don't last, and few pay minimum wages for significant staff to begin with. Waiters and waitresses earn their money from gratuities, same with busboys and girls. Pearl divers in greasy spoons, possibly. Fast food chains will take a hit, and who really cares? Many of them are updating for maximum automation eliminating many jobs anyway. No sick time, no benefits, no "my dog had to go to the vet and that's why I'm late."

NYC is an island economy. Almost all food is imported from elsewhere. As wholesale prices rise, as transportation prices rise, energy costs and other overhead costs rise retail and restaurant prices rise. Better restaurants compete on quality of food, and high quality demands higher prices. Winter months less people dine out, and that's when restaurants usually raise their prices. Minimum wage increases are minor matter.

Everyone always has the option of learning how to cook and dining at home. Then restaurant costs are irrelevant. Or dine at Daniel's and expect a bill of $500 or so for four. It's creative to charge $75 for a plate of pasta carbone. (actual cost at home $3.50, about 30¢ for the pasta)
 
Really!! Is anyone surprised? This happens EVERY TIME you hike the minimum wage

Nobody, including liberals like me, denied that some prices might go up. That is pretty much exactly what I expected. The important questions are...

Does income inequality improve?
Is it affecting unemployment?
Do the additional funds help reduce consumer debt?
Do fewer people need food assistance programs?
Do fewer people need housing assistance?

You're telling me some wealthy socialites will have to spend a little more if they want to keep eating out 7 nights a week? That's not tragic, that's the goal.
 
I can respect what you are saying, but for every action that makes it harder for businesses to do business in the state due to increasing costs and overhead, there is a consequence.
CA. loses a lot when they don't collect the needed tax revenue when thousands of businesses literally vacate the state for a friendlier business climate.
Take a look...
California Companies Flee Business-Hostile State In Droves

First of all, you didn't address the question. Take California. The cost of living is high, so what does a poor family do to make ends meet if there is no "welfare" and the MW stays at $8 or whatever?

And I looked at the editorial, and I can't get anything from it. It's an IBD editorial, which is always right wing. That's not always bad but there is no data anywhere in there that shows business growth in CA versus the rest of the country, net migration of businesses, net business formation versus the rest of the country, etc. If 100 leave and 1,000 start up, is that indicative of a good or bad business environment? Who knows, but if you don't know those numbers, and just get the "100 left" you don't know anything. That's what IBD tells us, and only that. The editorial talks about the high cost of housing. Odd that if businesses and workers are leaving that demand for housing and prices for it are going UP? How's that explained? It's not. Etc....

Here's a graph showing jobs growth by state by percentage. CA is #9. Texas is #10. Doesn't sound like an economic disaster in CA to me...

https://www.statista.com/statistics/312639/job-growth-in-the-united-states-by-state/
 
New Yorkers Shocked To Find Food Prices Rising After Minimum Wage Hike​​

https://hotair.com/archives/2019/01...ed-find-food-prices-rising-minimum-wage-hike/
The result of the Fight for 15 movement in New York City has finally gone into effect. The minimum wage jumped by 15% in many cases, to $15 per hour this month. This mostly affects employers of lower skill level workers, particularly in the food service and beverage industries. And now that labor costs have risen, restaurants from fast food joints to upper-end fine dining establishments have raised their prices. As a result, some people have had to make adjustments in their budgets and lifestyles, going out to eat less often and bringing their own lunches to work.
As you might imagine, that’s not only been annoying for the customers. It’s impacting the restaurant business as well. (NY Post)
New York City’s hotly contested minimum wage increase to $15 — up from $13 or $13.50, depending on employer size — rolled out citywide at the start of the year. And although that’s good news for NYC restaurant servers, patrons are grumbling about its impact on menu prices at their favorite eateries.
Ahead of the wage hike, the NYC Hospitality Alliance conducted a survey of 574 local food establishments in late 2018. They found that 87 percent of respondents planned to increase menu prices this year to offset the minimum wage bump. True to their promise, the cost of food has risen at various spots around the city.​​
Holy cow. Who could have seen that coming? Well… pretty much everybody. And that includes the Democrats who passed the $15 per hour minimum wage bill. How did they plan on offsetting the significant bump in dinner bills? By eliminating tipping for the wait staff. That idea went over like a lead balloon and was quickly abandoned by a number of eateries that tried it.

~~~~~~
Really!! Is anyone surprised? This happens EVERY TIME you hike the minimum wage for your socialist schemes. But supposedly THIS time would be different because the right people were in charge, RIGHT?!
Indeed, those Progressive Democrats either did not take any or slept through basic economics classes in school. If raising the minimum wage for service industry workers won't impact those businesses, then NOT raising it will have no impact on the workers, right?
Progressive Democrats majority in Congress is the next step to Venezuela's economy.

Social Democracy is not Venezuela, it's hilarious that people even try to make this idiotic comparison. Setting that absurdity aside, there's a slight problem with your entire argument:

None of that actually happened.

Firstly, NYC current minimum wage is 13.50 an hour for small businesses. You can literally verify this yourself here. Everything costs a lot more in NYC, LA, SF, and so on, but it doesn't have to do with "too much socialism." It's the fact that rich capitalists have bought all of the land in these areas and are treating it like investments, so probably 13% of what you pay on a cup of coffee is going straight to the rent, i.e. straight to some rich capitalist's pocket.

So yeah, $15/hr for minimum wage will make it harder for some businesses. But at the end of the day, the rent in these places has and continues to be an incredible problem.
 
New Yorkers Shocked To Find Food Prices Rising After Minimum Wage Hike​​

We had a massive minimum wage increase up here. Some restaurants dealt with this by increasing prices. Those that were reasonable got great publicity, and people saying "I don't mind spending a little more so fellow citizens can make a living wage". Those that went beyond covering their costs, and took out their frustration on their customers, in the hopes that would drive outrage and change at the government level, got horrible publicity, their businesses suffering even more.

At some point one must consider the morality of being thrifty, if saving money comes at the cost of someone else not being able to make ends meet. I'd say the same for making profits...if you're getting rich on paying people too little, your business model is wrong. Someone else has to make up that slack. This is why there are minimum wages in the first place.
 
Minimum wage went up here 3 weeks ago. lol...In 3 weeks because it went up .70 in most of the state so prepare for Armageddon...

I find it disgusting how often Trumpsters here and Cons defend the rich but always, ALWAYS dump on the little guy, the working people. 70 cents???? My God..

As far as the bigger raise in NYC.. Ever try to live in NYC? 1 of the most expensive places in the world, and it's been that way loooooong before mw HIKES.

Increases to rent are a likelier cause than the minimum wage; since the article was just based on conjecture.
 
Maybe more people will cook at home, as they should.
 
New Yorkers Shocked To Find Food Prices Rising After Minimum Wage Hike​​

https://hotair.com/archives/2019/01...ed-find-food-prices-rising-minimum-wage-hike/
The result of the Fight for 15 movement in New York City has finally gone into effect. The minimum wage jumped by 15% in many cases, to $15 per hour this month. This mostly affects employers of lower skill level workers, particularly in the food service and beverage industries. And now that labor costs have risen, restaurants from fast food joints to upper-end fine dining establishments have raised their prices. As a result, some people have had to make adjustments in their budgets and lifestyles, going out to eat less often and bringing their own lunches to work.
As you might imagine, that’s not only been annoying for the customers. It’s impacting the restaurant business as well. (NY Post)
New York City’s hotly contested minimum wage increase to $15 — up from $13 or $13.50, depending on employer size — rolled out citywide at the start of the year. And although that’s good news for NYC restaurant servers, patrons are grumbling about its impact on menu prices at their favorite eateries.
Ahead of the wage hike, the NYC Hospitality Alliance conducted a survey of 574 local food establishments in late 2018. They found that 87 percent of respondents planned to increase menu prices this year to offset the minimum wage bump. True to their promise, the cost of food has risen at various spots around the city.​​
Holy cow. Who could have seen that coming? Well… pretty much everybody. And that includes the Democrats who passed the $15 per hour minimum wage bill. How did they plan on offsetting the significant bump in dinner bills? By eliminating tipping for the wait staff. That idea went over like a lead balloon and was quickly abandoned by a number of eateries that tried it.

~~~~~~
Really!! Is anyone surprised? This happens EVERY TIME you hike the minimum wage for your socialist schemes. But supposedly THIS time would be different because the right people were in charge, RIGHT?!
Indeed, those Progressive Democrats either did not take any or slept through basic economics classes in school. If raising the minimum wage for service industry workers won't impact those businesses, then NOT raising it will have no impact on the workers, right?
Progressive Democrats majority in Congress is the next step to Venezuela's economy.

Actually the wage increase equals increasing prices argument is very weak unless the restaurants had very low margins. What you just described is exactly why restaurants and other businesses don't raise prices when wages go up unless they have to, since customers and demand ultimately control the lever of prices, not labor costs.
 
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