Seattle's Minimum Wage increase resulted in Restaurants being less Clean
A new study has determined that the higher minimum wage in Seattle doesn't just have a negative impact on jobs, it also has a negative impact on restaurants' hygiene.
The study, conducted by professors from Indiana University, Ball State University, and Villanova University, measured the effects of the minimum wage each time Seattle increased it and concluded that every dollar increase in the minimum wage resulted in total health code violations increasing by 6.3%.
The reason: a higher minimum wage results in higher costs for restaurants, but they don't want consumers to bear the brunt of the cost through higher prices, so they resort to reducing hours for employees while increasing the amount of work required for these employees, thus taking away from the attention necessary for hygiene.
Most of the increases in health codes are more minor violations, known as blue-code violations, rather than red-code violations, which would result in restaurants being shut down altogether. But blue-code violations do affect public health, as they constitute "things like - insect, rodents, animals, employee cleanliness and hygiene; toilet facilities - whether they were properly constructed, supplied and cleaned; the garbage has been properly disposed of,"
Seattle's $13 minimum wage resulted in a decline of $1,500 in income for employees earning lower wages.
They'll slam those restaurants with harsher sanitary regulations and that will fix it...right?
When operating on a small profit margin and an additional cost is imposed on you there are a number of approaches you can take to offset the new expense.
Here are some of the possible approaches.
1) Increase the price of your products/service.=Probable loss of custom.
2) Try to absorb the additional cost.= This may lead to to bankruptcy or a profit margin so small that being in business with all the responsibilities and stress becomes too unattractive to continue trading.
3)Hire ''cash in hand'' employees at below the legal level'= You automatically become a criminal and are open to prosecution and enormous fines, '' not recommended''.
4)Try to reduce fixed overheads, the largest of which is normally the wage bill, so payoffs and redundancies are inevitable.
This equates to a less efficient business and less tax revenue for the government.
In a capitalist society which operates on the well proven system of a free/private market, big brother type government has no place and the imposition of crippling levels of corporation tax and/or unrealistic minimum wages will cause businesses to fail with the ensuing higher levels of unemployment and messy bankruptcies.
Once the, divorced from reality government bureaucrats start meddling in the private sector of our economy, of which they have little or no real personal experience, then businesses cease to operate in the free market economy which has been the bedrock of our commercial practises since the formation of our nation.
McDonald's CEO Steve Easterbrook's total compensation nearly doubled to $15.4 million last year, his second full year in the top job, according to a Securities and Exchange Commission filing Thursday.
Easterbrook received a base salary of about $1.3 million last year, up from just over $1 million in 2015.
Looks as if you have a battle to fight with income equality and equal pay.