Discussion:
Harvard Business School: Every $1 increase in minimum wage causes 4%-10% increase in restaurant failure
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Rudy Canoza
2017-04-20 22:17:22 UTC
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Raw Message
"Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit"

We study the impact of the minimum wage on firm exit in the restaurant
industry, exploiting recent changes in the minimum wage at the city
level. The evidence suggests that higher minimum wages increase overall
exit rates for restaurants. However, lower quality restaurants, which
are already closer to the margin of exit, are disproportionately
impacted by increases to the minimum wage. Our point estimates suggest
that a one dollar increase in the minimum wage leads to a 14 percent
increase in the likelihood of exit for a 3.5-star restaurant (which is
the median rating), but has no discernible impact for a 5-star
restaurant (on a 1 to 5 star scale).

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951110##


This was obvious, of course. Raising the price of labor, either by
raising the minimum wage or by restricting the supply of laborers
(kicking out illegals), is going to have an effect on retail prices.
When you raise the retail price of things, people buy less of them, and
some businesses fail.
Robert Carnegie
2017-04-20 23:50:41 UTC
Permalink
Raw Message
Post by Rudy Canoza
"Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit"
We study the impact of the minimum wage on firm exit in the restaurant
industry, exploiting recent changes in the minimum wage at the city
level. The evidence suggests that higher minimum wages increase overall
exit rates for restaurants. However, lower quality restaurants, which
are already closer to the margin of exit, are disproportionately
impacted by increases to the minimum wage. Our point estimates suggest
that a one dollar increase in the minimum wage leads to a 14 percent
increase in the likelihood of exit for a 3.5-star restaurant (which is
the median rating), but has no discernible impact for a 5-star
restaurant (on a 1 to 5 star scale).
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951110##
This was obvious, of course. Raising the price of labor, either by
raising the minimum wage or by restricting the supply of laborers
(kicking out illegals), is going to have an effect on retail prices.
When you raise the retail price of things, people buy less of them, and
some businesses fail.
I notice the effect applies to "lower quality
restaurants". So, higher minimum wage (and a
dollar is a BIG increase), a better dining
experience.

Probably the shop isn't even paying minimum wage
anyway until wait staff are tipped.
Jeanne Douglas
2017-04-21 11:14:20 UTC
Permalink
Raw Message
Post by Rudy Canoza
"Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit"
We study the impact of the minimum wage on firm exit in the restaurant
industry, exploiting recent changes in the minimum wage at the city
level. The evidence suggests that higher minimum wages increase overall
exit rates for restaurants. However, lower quality restaurants, which
are already closer to the margin of exit, are disproportionately
impacted by increases to the minimum wage. Our point estimates suggest
that a one dollar increase in the minimum wage leads to a 14 percent
increase in the likelihood of exit for a 3.5-star restaurant (which is
the median rating), but has no discernible impact for a 5-star
restaurant (on a 1 to 5 star scale).
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951110##
This was obvious, of course. Raising the price of labor, either by
raising the minimum wage or by restricting the supply of laborers
(kicking out illegals), is going to have an effect on retail prices.
When you raise the retail price of things, people buy less of them, and
some businesses fail.
Then the government MUST provide food and health support. The US taxpayers are subsidizing hugely profitable industries who refuse to provide a living wage and benefits for their employees. Like by the billions of dollars.

I'll never understand why people support the worst welfare queens, the Walmarts and fast food restaurants of the country.
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Mike Moore
2017-05-07 06:09:40 UTC
Permalink
Raw Message
Post by Jeanne Douglas
Post by Rudy Canoza
"Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit"
We study the impact of the minimum wage on firm exit in the restaurant
industry, exploiting recent changes in the minimum wage at the city
level. The evidence suggests that higher minimum wages increase overall
exit rates for restaurants. However, lower quality restaurants, which
are already closer to the margin of exit, are disproportionately
impacted by increases to the minimum wage. Our point estimates suggest
that a one dollar increase in the minimum wage leads to a 14 percent
increase in the likelihood of exit for a 3.5-star restaurant (which is
the median rating), but has no discernible impact for a 5-star
restaurant (on a 1 to 5 star scale).
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951110##
This was obvious, of course. Raising the price of labor, either by
raising the minimum wage or by restricting the supply of laborers
(kicking out illegals), is going to have an effect on retail prices.
When you raise the retail price of things, people buy less of them, and
some businesses fail.
Then the government MUST provide food and health support. The US taxpayers are subsidizing hugely profitable industries who refuse to provide a living wage and benefits for their employees. Like by the billions of dollars.
The government does and did before Obamacare. When Obamacare
came along, it destroyed the healthcare systems in place and
drove up prices.
Post by Jeanne Douglas
I'll never understand why people support the worst welfare queens, the Walmarts and fast food restaurants of the country.
"food stamps, subsidized housing, and Medicaid." Source,
"progressive group Americans for Tax Fairness."

Maybe you shoud get your subsidy information from less biased
sources.
Gunner Asch
2017-05-07 18:31:34 UTC
Permalink
Raw Message
On Sun, 7 May 2017 08:09:40 +0200 (CEST), "Mike Moore"
Post by Mike Moore
Post by Jeanne Douglas
Post by Rudy Canoza
"Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit"
We study the impact of the minimum wage on firm exit in the restaurant
industry, exploiting recent changes in the minimum wage at the city
level. The evidence suggests that higher minimum wages increase overall
exit rates for restaurants. However, lower quality restaurants, which
are already closer to the margin of exit, are disproportionately
impacted by increases to the minimum wage. Our point estimates suggest
that a one dollar increase in the minimum wage leads to a 14 percent
increase in the likelihood of exit for a 3.5-star restaurant (which is
the median rating), but has no discernible impact for a 5-star
restaurant (on a 1 to 5 star scale).
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951110##
This was obvious, of course. Raising the price of labor, either by
raising the minimum wage or by restricting the supply of laborers
(kicking out illegals), is going to have an effect on retail prices.
When you raise the retail price of things, people buy less of them, and
some businesses fail.
Then the government MUST provide food and health support. The US taxpayers are subsidizing hugely profitable industries who refuse to provide a living wage and benefits for their employees. Like by the billions of dollars.
The government does and did before Obamacare. When Obamacare
came along, it destroyed the healthcare systems in place and
drove up prices.
Post by Jeanne Douglas
I'll never understand why people support the worst welfare queens, the Walmarts and fast food restaurants of the country.
"food stamps, subsidized housing, and Medicaid." Source,
"progressive group Americans for Tax Fairness."
Maybe you shoud get your subsidy information from less biased
sources.
Comrade Jeanne knew exactly which hard leftwing sites it came from.
They are right in the middle of her comfort zone. There has been
spectulation for years, that she is a missing grand daughter of Josef
Stalin.


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duke
2017-05-07 19:24:17 UTC
Permalink
Raw Message
Post by Mike Moore
Post by Jeanne Douglas
Post by Rudy Canoza
"Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit"
We study the impact of the minimum wage on firm exit in the restaurant
industry, exploiting recent changes in the minimum wage at the city
level. The evidence suggests that higher minimum wages increase overall
exit rates for restaurants. However, lower quality restaurants, which
are already closer to the margin of exit, are disproportionately
impacted by increases to the minimum wage. Our point estimates suggest
that a one dollar increase in the minimum wage leads to a 14 percent
increase in the likelihood of exit for a 3.5-star restaurant (which is
the median rating), but has no discernible impact for a 5-star
restaurant (on a 1 to 5 star scale).
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951110##
This was obvious, of course. Raising the price of labor, either by
raising the minimum wage or by restricting the supply of laborers
(kicking out illegals), is going to have an effect on retail prices.
When you raise the retail price of things, people buy less of them, and
some businesses fail.
Then the government MUST provide food and health support. The US taxpayers are subsidizing hugely profitable industries who refuse to provide a living wage and benefits for their employees. Like by the billions of dollars.
The government does and did before Obamacare. When Obamacare
came along, it destroyed the healthcare systems in place and
drove up prices.
Post by Jeanne Douglas
I'll never understand why people support the worst welfare queens, the Walmarts and fast food restaurants of the country.
"food stamps, subsidized housing, and Medicaid." Source,
"progressive group Americans for Tax Fairness."
Maybe you shoud get your subsidy information from less biased
sources.
Heeheehee.

the dukester, American-American

*****
"The Mass is the most perfect form of Prayer."
Pope Paul VI
*****

duke
2017-05-07 16:29:54 UTC
Permalink
Raw Message
Post by Jeanne Douglas
Post by Rudy Canoza
"Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit"
We study the impact of the minimum wage on firm exit in the restaurant
industry, exploiting recent changes in the minimum wage at the city
level. The evidence suggests that higher minimum wages increase overall
exit rates for restaurants. However, lower quality restaurants, which
are already closer to the margin of exit, are disproportionately
impacted by increases to the minimum wage. Our point estimates suggest
that a one dollar increase in the minimum wage leads to a 14 percent
increase in the likelihood of exit for a 3.5-star restaurant (which is
the median rating), but has no discernible impact for a 5-star
restaurant (on a 1 to 5 star scale).
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951110##
This was obvious, of course. Raising the price of labor, either by
raising the minimum wage or by restricting the supply of laborers
(kicking out illegals), is going to have an effect on retail prices.
When you raise the retail price of things, people buy less of them, and
some businesses fail.
Then the government MUST provide food and health support.
Quite the opposite. You're a libtard with way you think.
Post by Jeanne Douglas
The US taxpayers are subsidizing hugely profitable industries who refuse to provide a living wage and benefits for their employees. Like by the billions of dollars.
That's what they said when the min wage was $1/hr.
Post by Jeanne Douglas
I'll never understand why people support the worst welfare queens, the Walmarts and fast food restaurants of the country.
They are jobs for you poor people.

the dukester, American-American

*****
"The Mass is the most perfect form of Prayer."
Pope Paul VI
*****
Robert Feniello
2017-05-07 18:50:40 UTC
Permalink
Raw Message
Post by Jeanne Douglas
Post by Rudy Canoza
"Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit"
We study the impact of the minimum wage on firm exit in the restaurant
industry, exploiting recent changes in the minimum wage at the city
level. The evidence suggests that higher minimum wages increase overall
exit rates for restaurants. However, lower quality restaurants, which
are already closer to the margin of exit, are disproportionately
impacted by increases to the minimum wage. Our point estimates suggest
that a one dollar increase in the minimum wage leads to a 14 percent
increase in the likelihood of exit for a 3.5-star restaurant (which is
the median rating), but has no discernible impact for a 5-star
restaurant (on a 1 to 5 star scale).
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951110##
This was obvious, of course. Raising the price of labor, either by
raising the minimum wage or by restricting the supply of laborers
(kicking out illegals), is going to have an effect on retail prices.
When you raise the retail price of things, people buy less of them, and
some businesses fail.
Then the government MUST provide food and health support.
No.
Post by Jeanne Douglas
I'll never understand why people support the worst welfare queens, the Walmarts and fast food restaurants of the country.
You've been lectured on this stupidity *many* times already, Fat Jeanne.
Welfare programs are *not* a subsidy to business - they are a *tax* on
business. Welfare programs force business enterprises to pay *higher*
wages than they otherwise would. The welfare benefits raise the
reservation wage (https://en.wikipedia.org/wiki/Reservation_wage) of the
deadbeats.

Suppose the welfare benefits to deadbeats average $25 per hour. How
many hours will the average deadbeat be willing to work for $10 per hour
when she earns $25 per hour sitting on her ass smoking and guzzling
Mountain Dew? *Zero* hours, that's how many.

Welfare benefits are at *tax* on business, not a subsidy - they raise
wages that business firms must pay. Stop repeating your lie, Fat Jeanne.
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