| > Because you’re not changing the service you’re providing and a “worse” worker doesn’t decrease the throughput of the store in any measurable fashion. I dont think either assertion is true. Maybe a business finds ways to cut costs to offset the wage increases leading to a worse product for the consumer. If I have a worker that is able to produce 150% of the tacos per hour compared to another worker, there is definitely a difference in throughput and therefore a difference in value. > This increase will get passed onto the consumer... reducing the profit margin I agree. There are three outcomes: 1. Pass the costs to the consumer 2. Reduce profit margins 3. Go out of business (this happens when 1 and 2 fail) The policy now has forcably changed the market equilibrium for labor by reducing supply in jobs comparable to fast food. The government has now mandated the consumer must pay more than the market equilibrium price. It has mandated that entrepreneurs reduce their income. |
All the other things are secondary consequences that may, or may not, happen.
If a company can not keep up with the rising cost of labor, they’re more than welcome to secede ground to their competitors who can.