Wendy’s minimum wage hike impact on employment, Businesses do not pay for taxes and minimum wage hikes employees and consumers do, Last minimum wage increase eliminated 300k jobs, Obamacare and Obama part time job economy will worsen
“The truth is, raising the minimum wage could be just about the worst thing he could do for the jobs market. We are already 7 million jobs in the hole, 7 million fewer jobs than when the President took office. Raising the minimum wage means employers whose businesses are struggling will simply get rid of jobs. They will cut workers. According to the Heritage Foundation, the last minimum wage increase eliminated 300,000 jobs”…Gerri Willis Fox News February 13, 2013
“One of the CBO’s most intriguing estimates is that by 2017 there will be 2 million fewer full-time jobs on the market than there would have been without Obamacare, and that figure could climb to 2.5 million by 2024.”…Market Watch February 4, 2014
“We are being lied to on a scale unimaginable by George Orwell.”…Citizen Wells
We have Hillary Clinton talking about raising taxes, Obama and the left trying to raise the minimum wage and this all sounds great to low information voters.
The reality is that these measures kill jobs and hurt the very people they are supposed to help.
From Fox Business February 13, 2013.
“The truth is, raising the minimum wage could be just about the worst thing he could do for the jobs market. We are already 7 million jobs in the hole, 7 million fewer jobs than when the President took office. Raising the minimum wage means employers whose businesses are struggling will simply get rid of jobs. They will cut workers. According to the Heritage Foundation, the last minimum wage increase eliminated 300,000 jobs,
For a president who says he won’t sleep until everybody who wants a job has one, get some NoDoz because there are going to be some sleepless nights.
There are unintended consequences of a higher wage policy, but there is also the fact that the President inaccurately depicts the people on minimum wage. If you surmised from the President’s description that minimum wage workers were single mothers balancing a job at McDonald’s and caring for her children, you’d be wrong. Most minimum wage workers aren’t adults but people 25 years of age and under, and 60% work part-time.
The true picture of the typical minimum wage worker is a high school or college student with a part-time job, balancing work with the demands of an academic life. Do they deserve a 14% pay hike?
According to the Heritage Foundation, people who are paid minimum wage typically live in households with incomes two or more times over the official poverty level. Non-economists refer to them as mom and dad.
Here’s what the President doesn’t understand that you probably do: minimum wage jobs are training positions. The employer contributes every bit as much to the worker in terms of training teaching job skills, good work habits, how to meet expectations, as the worker does. That’s why these folks aren’t getting top dollar. They are newbies.
The job market is full of people performing at different levels and they all don’t get paid the same amount of money! That is fair, right and good.
Oh, and by the way, two-thirds of minimum wage workers don’t earn minimum wage after a year. They get a raise!”
From Zero Hedge August 11, 2015.
“Wendy’s Explains What Happens When Fry Cooks Make $15/Hour”
“At the most basic level, the argument against hastily construed wage hikes is that forcing employers to pay everyone more will simply prompt companies to fire people or at the very least, curtail hiring. As one Burger King franchisee recently told CBS, “[fast food] businesses are not going to pay $15 dollars an hour [because] the economics don’t work in this industry. There is a limit to what you’re going to pay for a hamburger.”
With that in mind, we present the following commentary from Wendy’s most recent conference call with no comment:
Todd A. Penegor – Chief Financial Officer & Senior Vice President
Yeah. So we continue to see pressure on wages two fronts, one is minimum wages at the state level continue to increase, and as there is a war on talent to make sure that we’re competitive in certain markets. So we’ve made some adjustments to that starting wage in certain markets. The impact hasn’t been material at the moment, but we continue to look at initiatives on how we do work to offset any impact to future wage inflation through technology initiatives, whether that’s customer self-order kiosks, whether that’s automating more in the back of the house in the restaurant, and you’ll see a lot more coming on that front later this year from us.
John William Ivankoe – JPMorgan Securities LLC
Okay, understood. I mean there is obviously a lot of discussion of wage prices, wage costs and that there would be increased pricing at the franchise level to offset those increased wages, especially in markets like New York for example that are going to see some very severe increases in wage costs. So can you juxtapose the franchisees’ desire and/or need to take pricing at the store level with what sounds like an increased focus overall for the brand on value, can those two things be achieved simultaneously?
Emil J. Brolick – President, Chief Executive Officer & Director
Yeah, John, this is Emil. And our franchisees, I find them to be very astute business people, and they have a great sense of their trade areas where their restaurants are and a great I think understanding of what the competitive environment is in terms of their capacity to price. I think the reality is that what you will see in like some of these markets, the New Yorks, where there is these very significant increases, is that they will be – our franchisee will slightly likely look at the opportunity to reduce overall staff, look at the opportunity to certainly reduce hours and any other cost reduction opportunities, not just price. There are some people out there who naively say that these wages can simply be passed along in terms of price increases. I don’t think that the average franchisee believes that, and there will have to be other consequences, which is why we have pointed out that unfortunately we believe the some of these increases will clearly end up hurting the people that they are intended to help.”