NYC restaurants cut staff and raise prices because of $15 minimum wage
Looks like there's bad news in the Big Apple. NYC's $15 minimum wage is causing restaurant owners to cut staff, cut staff's hours, and increase prices in hopes to offset the higher wages. The minimum wage increase, fought for by Democrats, was supposed increase worker's money and way of life - but that's not possible if the workers aren't working the same amount of hours, or worse - don't have a job.
It was Democrat Gov. Andrew Cuomo who "signed legislation in 2016 to increase the New York York State’s minimum wage to $15.00/hr. The lowest minimum wage in NY at the time was $9.60. NYC’s “big employers” (11 or more employees) were the first to be forced to increase minimum wage pay toward the end of 2018. The rest of NYC’s smaller-scale businesses won’t have to pay up until December of 2019, according to data on Cuomo’s website."
Now that restaurants are paying more to employees, they're forced to come up with ways to either lower the hours, lay people off, or increase prices to the consumer. When restaurants spend more money to produce their products, they need to raise prices to stay in business. In other words, this all falls on the pockets of the consumer.
In a report by Small Biz Trends, who aggregated it from Daily Caller, it was stated that about "77 percent of NYC restaurants have slashed employee hours. Thirty-six percent said they had to layoff employees and 90 percent had to increase prices following the minimum wage hike, according to a NYC Hospitality Alliance survey taken just one month after the bill took effect."
Those in opposition of the $15 minimum wage argue that jobs like those in the fast food industry are not meant to be lifelong jobs providing livable wages. Those are argued to be jobs for high school students and people in their early 20's who are hopefully working towards a stronger career choice.
This point was raised back in 2014 when I posted an article stating that fast food workers should not receive $15 an hour.