Democratic presidential candidate Tom Steyer’s plan to raise the federal minimum wage to $22 per hour is “absurd,” former McDonald’s USA CEO Ed Rensi warned FOX Business’ Dagen McDowell Monday. “It will put small businesses out of business; it will be dilatory to job growth in every way possible,” Rensi said on “Mornings with Maria.” Rensi noted small businesses are the biggest ongoing generators of American jobs. Small businesses employ 47.3 percent of the private workforce in the U.S., according to 2019 U.S. Small Business Administration data. Restaurants like McDonald’s face labor costs of about 33 percent of its sales, which, according to Rensi, is very high. If the minimum wage increases to $22 per hour as Steyer is proposing, he said the costs of labor will increase 50 to 60 percent. This, Rensi insisted, will result in the price of a hamburger increasing from $4 to $9 or $10. “It just isn’t workable from an economic standpoint,” he said. “It’s inflationary; it’s a job killer, and it’s very depressing to small businesses.” Rensi argued the minimum wage is not meant to be a living wage, maintaining it’s supposed to be an entry-level wage for workers with little-to-no skills. “I think some of these politicians are out of their minds,” Rensi declared. “You would think by now that they understand that the entry-level worker making minimum wage should progress through mentoring and training into other jobs.” When asked about the declining participation in the federal food stamp program SNAP, Rensi expressed his hopefulness. “Most people really would prefer to work for a living and earn the food opportunities that they have and to be able to enjoy the commerce of the United States like everyone else,” he said. He recalled growing up around the coal and steel industries in West Virginia and Ohio where people of “great pride and dignity” were forced by their situation onto welfare. He noted the psychological damage and hopelessness felt by people in such a position.
Raising the minimum wage always sounds good, until its properly analyzed. And, one would think that a BILLIONAIRE like Tom Steyer would understand that. But, he’s running for the Democrat nominee for President. So, he has to spout out the standard talking points that are popular with the Democrat low-information demographic. Thanks to Ed Rensi for injecting a little common sense into the discussion here. An entry level job at McDonald’s or some other fast food business is exactly that; an entry level position. So, the pay isn’t supposed to be a “living wage.”
A Maryland county could lose an estimated 47,000 jobs by 2022 if it chooses to raise the minimum wage to $15 an hour, according to a new study released Tuesday evening. The Washington Post reports that the study, which Montgomery County Executive Isiah Leggett (D) commissioned, found that the majority of positions that would be eliminated were low-wage jobs. Leggett decided to move forward with the study after he vetoed a minimum wage increase in January. In explaining his decision to veto the minimum wage increase, he said the wage hike would devastate the economy in Montgomery County. PFM, the Philadelphia-based consulting group that carried out the study, found that a minimum wage hike to $15 would lead to a $396.5 million loss of income in Montgomery County by 2022. The loss of income would come from businesses deciding to lay off employees, cut hours and benefits for those that remain, and nix plans to hire new workers and open new locations. “We can’t minimize some of the impacts outlined here,” said Leggett, responding to the study’s results. “Even if it’s not 47,000 jobs lost, even if it’s half that, those are some startling numbers. You can’t discount it all.” County council member Marc Elrich, however, remains unconvinced of the study’s findings. Elrich proposed a bill that would raise the minimum wage in Montgomery County to $15 by 2022 a week before the study was due. He called the PFM study “nonsense,” saying it was impossible to predict how a wage increase would impact the future. Elrich also claimed that the study was biased because employers would be more likely to respond negatively. PFM’s study was conducted from April to June using electronic surveys, phone, and in-person interviews with business and nonprofit owners and community leaders. Several studies on minimum wage hikes conclude that they are bad for business — both for employers and employees. A Harvard Business School study from April found that minimum wage laws increase the chance that non-elite restaurants will go out of business. A June study from the University of Washington found that Seattle’s minimum wage hike is cutting employees’ salaries by $125 a month.
Raising the minimum wage arbitrarily is a foolish thing. But, it’s trendy and popular in big cities and blue states where Dems are in control. So, kudos to Mr. Leggett (D) in Montgomery County, Maryland for putting common sense ahead of a failed liberal Democrat agenda item. Wages should be determined by the free marketplace; NOT some politician or silly, however popular, ballot initiative.
Looks like America will run a little less on Dunkin’. Dunkin’ Brands, the parent company of Dunkin’ Donuts and the Baskin-Robbins ice cream chain, announced Thursday that one of its franchisees it will be shutting 100 stores across the country in the next 15 months, reports Forbes. The restaurants to be closed in 2015 and 2016 are run by convenience store chain Speedway LLC, Dunkin’ said. Speedway will continue to remain a franchisee of Dunkin’ Brands. Dunkin’ said a spike in the cost of eggs due to the recent avian flu outbreak in the U.S. was a reason along with concerns with the rise in minimum wage laws in cities across the country. Last month, New York became the first state to raise the minimum wage for fast-food workers to $15 an hour. Speaking at an investor presentation in New York, Dunkin’ CEO Nigel Travis said that the wage hike would have far reaching implications. “It’s going to affect small businesses and franchises,” and he noted that it might mean mass layoffs. Despite the outlet closures, the company reiterated its 2015 plan to have 410 to 440 net new Dunkin’ Donuts restaurants in the U.S. and to build its “coffee culture” with hot coffee and iced coffee. But competition is stiff as the retail sector continues to contract despite claims that the economy is doing better. Just last week, Dunkin’ Donuts announced a new seasonal drink to compete against Starbucks’ popular Pumpkin Spice Latte-called Pumpkin Macchiato–available both hot or iced. The chain also unveiled a new delivery system starting in 2016 where doughnut lovers can get their breakfast items right on their doorstep.
Take a good hard look at WHY Dunkin’ Donuts is shutting down 100 stores, and why the CEO predicts “mass layoffs”.. It’s because of Democrats foolishly, and arbitrarily, raising the minimum wage to $15/hr in some places like New York and other major metropolitan areas. The minimum wage should be determined by the work place; NOT arbitrarily by some Democrat politicians who want to make their uneducated constituents “feel better.” I wonder how they’ll feel when they get laid off, or their company folds because they can’t pay the wages their required to pay by law. Who loses then? EVERYONE! After all, who is gonna pay $20 for a Big Mac? NOBODY. Yeah.. These morons don’t think through those inconvenient details/facts. They just pull $15/hr out of their liberal butts and when they hear it got passed they all cheer….until they get let go. I’m becoming more and more convinced that the reason that The Walking Dead and other such silly zombie nonsense is so popular…is because many people see themselves in those zombies. They relate! It certainly explains some tool like Obama getting elected…twice. But, I digress.. Again, read this article, twice if need be, and pass it along to your friends who all think that a hike in the minimum wage is such a great idea. It’s not. It SOUNDS good.. But, in reality, it causes far more harm than good..FAR more.
Hikes in the minimum wage have other effects besides just giving low-income workers a raise. Important new research suggests that minimum wage increases in the late 2000s resulted in the loss of some 1.4 million American jobs and hurt unskilled workers most of all.
Of course.. That’s why socialism fails wherever its tried. Its a matter of supply and demand; Econ 101. When government artificially, and arbitrarily, mandates some wage that they deem to be “fair,” but has NO bearing on the economic value of the service provided, the only person it ultimately hurts are those looking for jobs, or wanting to keep their jobs. If McDonald’s were to suddenly be forced to pay their employees $15/hr, who the heck would buy that $20+ Big Mac? Exactly.. NOBODY. So, ultimately, that McDonald’s business would tank, the employees would be let go, and that franchise would go out of business. EVERYONE would lose. Supply and demand. And yet, most Democrats, and liberals in general, either are too stupid to know this basic law of economics, OR they’re disingenuously just buying votes from the low-information crowd; their voter base.