Lake Erie Conservative

thoughtful discussion(s) about issue(s)

… What Happens When You Do Something Dumb [#the $15 min wage]…

Posted by paulfromwloh on Tuesday,November 15th,2016

.. companies make changes ..

.. it is called substitution in economics ..

.. why ?? …

.. [h/t —]..
.. [link] to the blog post ..

.. many of Mickey D ‘ s employees are transitory [transitional] . They do not stay at the restaurant all that long . Sometimes , the store finds someone that is special , and they invest the time and man – hours in that person . But that does not happen very often …

.. so when folks do something that is economically stupid , such as adopting the $15 minimum wage , a company thinks ahead . They can see this coming . When it happens , they change . They ” substitute ” technology for human capital , and then the economics work again …

.. unfortunately , the lower – wage and lower – skilled worker pays the price . The company can and must become much pickier . It does pay them to pay more , but for a much higher – skilled worker . As in one who is likely willing to stay around the restaurant a good bit longer …


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