• Nick Sorrentino

NYC Fast-Food Workers Stunned Some Are Being Fired after $15 Minimum Wage Hike

If your labor is worth $10/hour in the marketplace but the government insists that employers pay $15/hour for entry level work, your labor doesn't suddenly become worth $15/hour. It just means that you won't be hired in the aboveground economy. Government doesn't possess some magic wand that suspends supply and demand.

This is reality.

(From FEE)
For a company to offer a higher wage to an employee, it must first be able to afford the hike.
For companies, paying entry-level, unskilled workers the same they would pay a manager or a seasoned employee doesn’t make any sense—not because employers aren’t compassionate but because they would have to pull in more money to afford these high wages.
When governments force them to pay unskilled workers more, they necessarily have to cut costs somewhere to avoid losing money. After all, the goal is staying open and profitable. If the employer is losing money, he or she can’t pay anyone anything.

Click here for the article.