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re: NY restaurants raising prices to cover minimum wage increase

Posted on 2/18/19 at 7:44 pm to
Posted by Antonio Moss
Baton Rouge
Member since Mar 2006
48331 posts
Posted on 2/18/19 at 7:44 pm to
No political ideology is immune from economics.
Posted by TbirdSpur2010
ALAMO CITY
Member since Dec 2010
134026 posts
Posted on 2/18/19 at 7:44 pm to
quote:

You just assumed that as long as we make "paltry $2.00 per hour increases" there will be NO consequences?

silliness


This type of bald faced foolery makes my head hurt.
Posted by C
Houston
Member since Dec 2007
27832 posts
Posted on 2/18/19 at 7:49 pm to
Dems want people out of work by design. The last thing they want is people having freedom. They’re not implementing policies bad for the economy because they are ignorant to its effects. They’re implementing with full knowledge that republicans will never win if the majority are on some form of welfare.
Posted by Lsut81
Member since Jun 2005
80252 posts
Posted on 2/18/19 at 7:58 pm to
What’s hilarious is the increases needed to offset those salary increases will directly effect those who got the increases... And just wait until they bitch about an increase in prices.

They are too stupid to understand action/reaction
Posted by deathvalleytiger10
Member since Sep 2009
7622 posts
Posted on 2/18/19 at 7:59 pm to
quote:

Because you know , $1-1.50 raise over 3 years or whatever isn't a big deal and can be absorbed


It is a much bigger deal than you can imagine it appears. Business margins are tight. They can’t just “absorb it” and have a healthy profit.

In a few months we will read about layoffs because of this, along with some places closing because they couldn’t “absorb” it.
Posted by tjv305
Member since May 2015
12521 posts
Posted on 2/18/19 at 8:00 pm to
Sounds like these morons should stop voting for democrats. What do they expect to happen when you tax businesses and form them to pay their labor more?
Posted by ninthward
Boston, MA
Member since May 2007
20455 posts
Posted on 2/18/19 at 8:18 pm to
quote:

"Another increase, and I won't come back."
I mean what do you expect would happen?
Posted by Tiger Prawn
Member since Dec 2016
21983 posts
Posted on 2/18/19 at 8:23 pm to
Posted by Ollieoxenfree99
Member since Aug 2018
7748 posts
Posted on 2/18/19 at 8:26 pm to
You could always stop spending money on stupid coffee drinks altogether.
Posted by Taxing Authority
Houston
Member since Feb 2010
57407 posts
Posted on 2/18/19 at 8:26 pm to
quote:

can be absorbed.
I love this garbage.
Posted by LSUAlum2001
Stavro Mueller Beta
Member since Aug 2003
47154 posts
Posted on 2/18/19 at 8:40 pm to
Posted by McChowder
Hammond
Member since Dec 2006
5260 posts
Posted on 2/18/19 at 8:50 pm to
Can we reinvest that lost revenue? - AOC
Posted by FooManChoo
Member since Dec 2012
41797 posts
Posted on 2/18/19 at 9:03 pm to
quote:

After all, do companies raise prices every time they give an employee a raise? Of course not.
No, because it’s generally one employee who is adding more value to the business, thus earning a raise.

This situation results in ALL employees getting a raise at the same time, even if they don’t deserve it by adding additional value by their labor.
Posted by Lou Pai
Member since Dec 2014
28152 posts
Posted on 2/18/19 at 9:16 pm to
The chasm between the two different bases on basic economics knowledge never ceases to amaze.
Posted by dafif
Member since Jan 2019
5632 posts
Posted on 2/19/19 at 8:59 am to
"I’m guessing this also includes servers and bartenders in the city, so there is no longer any need to tip these folks."

EXACTLY!
Posted by Wtodd
Tampa, FL
Member since Oct 2013
67508 posts
Posted on 2/19/19 at 9:37 am to
quote:

Who didn’t see that coming...

Rhetoricals I love 'em
Posted by Steadyhands
Slightly above I-10
Member since May 2016
6824 posts
Posted on 2/19/19 at 9:38 am to
quote:

Because you know , $1-1.50 raise over 3 years or whatever isn't a big deal and can be absorbed.


Why should a business just absorb that extra cost anyways? It's the staff that's demanding more money for the same service. The business owner is still providing the exact same product that the customer was willing to pay for, which included a portion for the server. It's the servers then, who are essentially saying that they are worth more money for the exact same service to be provided, as the product didn't change. The value of a burger is set by the demand for prepared food, by the consumer. The consumers know that there is additional cost associated with a burger served at a sit down restaurant. Just like with the amount the consumer is willing to pay for a burger, there is also a limit the consumer is willing to pay to be served that burger.

Service is better at a low wage, and tips. People aren't going to tip much if any, knowing the server makes 15 an hour. Add to that, the quality of service will go down because even the ones willing to bust their arse for that extra dollar, aren't going to get tipped much. By raising the minimum so high, you basically take the quality out of the service.
Servers making money primarily off tips were more like independent contractors. They get paid a small amount from the business and then they are free to go earn what they want to make by providing a quality service.
In summary, the top earners are going to make less now, driving the quality out of service. The consumers aren't going to be willing to pay for bad service.
Again, the price of a burger is essentially set and it won't change from consumer perspective. The price of the service used to be set based on the quality of the service and paid with a tip. You can't force a tip down the consumers throat.
This post was edited on 2/19/19 at 9:40 am
Posted by Woody Glazer
Member since May 2017
213 posts
Posted on 2/19/19 at 10:38 am to
Purchases are voluntary. Wages aren’t.

Paying livable wages to people working at the bottom rung of the job ladder will help their families dramatically, even if some prices go up in stores. And it will encourage more people to get off of government assistance and get jobs, because it will actually be worth it. The fact that some NY bourgeois restaurants will raise costs to offset their expenses isn’t the main point. The point is giving poor Americans a real out, thru hard work, instead of assistance programs.

Middle and Upper class people will buy what they’re gonna buy. If one store gets too expensive, they’ll shop somewhere else. It’s not like they are gonna stop buying espresso machines because it costs a little more. They will still spend their money. Stores that don’t find the supply/demand balance will fail. Tough shite. Stores that do find the balance will thrive, and create more jobs.

So much doom and gloom about price increases in this thread. Not one word about the benefit to our fellow Americans at the bottom of the socio-economic chain. That’s why I made my slavery post in jest. Not one word about the lives this would improve. You middle class chicken littles will be fine.

The socialists are not coming for your Kenny Loggins records.
Posted by JEAUXBLEAUX
Bayonne, NJ
Member since May 2006
55358 posts
Posted on 2/19/19 at 11:06 am to
I used to bill 15 an hour in Queens 5 years ago. Pay 8 ish
Posted by Dixierebel
Alexandria, La
Member since Dec 2016
534 posts
Posted on 2/19/19 at 11:12 am to
I agree, if they are making >10 hr then they should not be tipped. Service has gotten so bad anyway.
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