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The predictable reults of central planners trying to 'fix' the labo market

KLATTU

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https://dailycaller.com/2019/01/08/...&utm_campaign=atdailycaller&utm_medium=Social

New York City’s minimum wage rose to $15 an hour for all employers with more than 10 employees at the start of 2019. Small businesses have set about adapting to the increased labor costs by hiking prices, cutting jobs and benefits, and automating more of their operations, The Wall Street Journal reported Monday. (RELATED: Dems Set Sights On $15 Minimum Wage After Winning House: Report)

“It is a very tricky and delicate situation,” Amy Scherber, who employs 210 people across seven bakeries in the city, told WSJ. “We’d love to give a good raise to every person, but the reality is there’s just not that much extra money around.”

Businesses across the state are having trouble finding workers while unemployment sits at 3.7 percent, a New York State Department of Labor analyst, Elena Volovelsky, told WSJ.


Scherber is walking a fiscal tightrope between following the law, keeping a fair pay scale – bumping employees’ wages up to $15 an hour while giving raises to others who were previously making more than the minimum – and running a profitable business.

“It’s not fair to just raise the bottom rung. You have to slide up the whole scale,” Pat Whelan, managing director of a Brooklyn grocery company, told WSJ, echoing Scherber. “If you raise the bottom guy and not the top guy, it diminishes what the top guy is doing.”
California, one of the most progressive states on minimum wage hikes, plans to enact a statewide $15 an hour minimum wage law by 2022. California’s minimum wage laws will cost the state roughly 400,000 jobs by 2022, a December 2017 study by economics professors David Macpherson of Trinity University and William Even of Miami University found.
 

ttwtt78640

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Maintaining that relative pay difference (between entry level and more skilled labor) is, of course, essential - why acquire more skills (or even exhibit more effort) in the workplace if not for a financial reward (incentive?)?
 
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