New Yorker`s Shocked After Minimum Wage Increase Leads To Cost Increases. Do They Not Understand Economics?
An article from the New York Post discusses how the minimum wage increase in New York has forced restaurants to increase their prices and the negative reaction by customers.
“Ahead of the wage hike, the NYC Hospitality Alliance conducted a survey of 574 local food establishments in late 2018. It 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.
“Basically, the prices will have gone up at every restaurant in New York,”
It goes on to say how customers are upset at rising prices, including a McDonald`s Big Mac meal increase from $9.58 to $10.52, and that they are cutting back on eating out, opting to bring their own lunches to work etc. One man, 30 year old Edward Beck said that the price increase at Starbucks is obnoxious and like a slap in the face. The article says that if there is another increase that he won`t come back.
This is what happens when people use emotions over reality. The concept of people being upset that costs increase after businesses are forced to pay more in expenses shows that disconnect to reality. It`s almost as if these people don`t understand economics.
Don`t worry New York, if you`re upset now, wait until democrat socialist Nomiki Konst gets her $30 minimum wage increase through.
In reference to this, view our post here on Mandating A Minimum Wage Vs. Reducing Corporate Taxes