The Fosters Freeze team in Lemoore, California, felt "shock" as they learned of the restaurant's last-minute closure on Monday, following the state's newly enacted $20 minimum wage law.
This was a government action and not a market action. As the article states, the people were happy with their pay. Now they don’t have a job and they are unhappy with their pay.
The free market already had this under control.
Everyone’s cost of living has increased post-pandemic, minimum wage need to rise. The restaurant could have raised their price as well but chose not to, either because they think their clientele can’t afford it (increased cost of living, which is what rising the minimum wage can offset), or because the market is already saturated and they’re no longer competitive.
Something/someone has to give in when there’s inequality.
The total job market is reducing. That means there will be fewer jobs. California already has higher unemployment. So they just created a worse situation for these people.
The job market for them keep getting smaller.
Restaurants are a luxury. Either the pay reflects that and they get paid a decent wage or the market will react somehow.
This was a government action and not a market action. As the article states, the people were happy with their pay. Now they don’t have a job and they are unhappy with their pay. The free market already had this under control.
Everyone’s cost of living has increased post-pandemic, minimum wage need to rise. The restaurant could have raised their price as well but chose not to, either because they think their clientele can’t afford it (increased cost of living, which is what rising the minimum wage can offset), or because the market is already saturated and they’re no longer competitive.
Something/someone has to give in when there’s inequality.
By forcing a higher wage, they just created more inequality. Now these people don’t have jobs and the total number of jobs has been reduced.
And these vacant positions elsewhere also need to pay minimum wage. It’s a temporary setback until the system adjust to the new minimum.
The total job market is reducing. That means there will be fewer jobs. California already has higher unemployment. So they just created a worse situation for these people. The job market for them keep getting smaller.
Your belief in a fair market has you blaming all the wrong people for all the wrong things.
Wages are set by supply and demand. I blame the correct person in this situation. The California government
You stand alone in your argument sir.
ThE fREE mArKeT