Thursday, April 16, 2009

Economy's Not A Problem; It's Those Bad Laws

A voter-approved measure that has Arizona's minimum wage above the federal requirement is forcing some restaurant owners to lay off and reduce health benefits for employees, industry leaders told state lawmakers Tuesday.

"Local restaurants support our communities, and right now we're in trouble," said Matt McMahon, owner of 19 Outback Steakhouse locations in Arizona. "The economy is not the problem; bad laws are the problem."

Link.

12 Comments:

At 4/16/2009 2:44 PM, Blogger ExtremeHobo said...

Ah yes, the minimum wage debacle. But companies out of business so that high schoolers can have fatter paychecks from their summer jobs.

 
At 4/16/2009 3:07 PM, Blogger spencer said...

Interesting complaint.

Since 1975 the correlation between the relative performance of the S&P index of restaurants stocks has a positive correlation of 0.8 with the minimum wage.

This implies that a rising minimum wage is good for restaurants.

Maybe we should apply the same simple introductory economics you apply to the minimum wage to CEO salaries.

The obvious conclusion is that we should cut CEO salaries are soon we will not have any CEO's to run our corporations.

 
At 4/16/2009 3:28 PM, Blogger NoWhining said...

"Since 1975 the correlation between the relative performance of the S&P index of restaurants stocks has a positive correlation of 0.8 with the minimum wage."

Don't confuse correlation with causation. I think you already know better than that, but are willing to forego sound argument if only it makes your point.

 
At 4/16/2009 6:28 PM, Blogger 1 said...

"This implies that a rising minimum wage is good for restaurants"...

Gee! One could make the argument that it also implies western sunrises too...

The long and short of it is that the minimum wages laws should be swept away...

Whenever government forcibly raises employment costs it causes marginal labor, that is, labor that barely covers its costs, to become submarginal. It does not matter whether government orders wage rates to rise or benefits to be improved, the workday to be shortened, overtime pay to be raised, funds to be set aside for sickness and old age, or any other benefit to be granted. A small boost renders few workers submarginal, a large boost affects many. In matters of employment they now are "unproductive" and cannot be used economically...

 
At 4/16/2009 7:32 PM, Anonymous Anonymous said...

This implies that a rising minimum wage is good for restaurants.Great, let's just make it 100 bucks an hour and everyone will be rich.

 
At 4/16/2009 7:34 PM, Anonymous Anonymous said...

Why is this thing compressing my posts?

 
At 4/17/2009 8:47 AM, Blogger spencer said...

In Arizona the minimum wage for employees receiving tips is $4.25/hour as compared to the federal minimum wage of $6.55/hour.

 
At 4/17/2009 10:30 AM, Anonymous Anonymous said...

Trying to legislate pay for unskilled workers is nonsense. It should not be set by government but rather the market. Besides, most wages are higher than the minimum wage anyways.

This is also why unionized industries are dying out. The workers demand wages that are higher than the market and makes their businesses less comptetitive. We've seen this in textiles, steel, autos and now in government schools and public services. Of course, the public service unions operate on the principal that taxpayers are chumps.

Some people never learn.

 
At 4/17/2009 2:56 PM, Anonymous AMATI NONYMUS said...

"
$4.25/hour as compared to the federal minimum wage of $6.55/hour.
"
~~Spencer~

In areas where this is not true thus higher salary will raise menu price so that 20% tip will also be higher causing less desirable clientèle to drop out. Restaurant business is a different breed of cat.

In some areas minimum wage does not apply to operator with less than 25 employees. This helps jump start the bright new entrepreneurs of beneficial service and product -- the mom and pop store, for example the Original McDonald's Outlet.

 
At 4/18/2009 12:04 AM, Blogger bob wright said...

So if a minium wage leads to rising profits for reataurants, why mess around with $4 or $6?

Why do politicians doom people to a life of poverty by forcing theme to live on $6/hr?

Just set it at $20 or $30 - a real living wage. Who can live on $6/hr?

Everyone will make at least $40,000/yr, businesses will have more profits than they know what to do with, and prosperity will reign in the land.

 
At 4/18/2009 1:05 PM, Blogger sethstorm said...

Trying to confuse the point with some extreme will not help.

 
At 4/18/2009 4:21 PM, Blogger 1 said...

"Trying to confuse the point with some extreme will not help"...

There is NOTHING remotely confusing about bob wright's comment...

spencer is obviously the very confused person rife with extremes...

 

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