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The greater part of operating cost isn't wages, it's rent for the premises, cost of energy and of raw materials, and yet this pernicious meme gets trotted out e
by HarryHirsch 9y ago
The greater part of operating cost isn't wages, it's rent for the premises, cost of energy and of raw materials, and yet this pernicious meme gets trotted out every damn time the subject of minimum wage comes up. What I cannot understand is why that is.
- pm24601 9y agoI understand why: It serves the interest of CEOs What I don't understand is why non-CEOs believe it so dogmatically.
- palakchokshi 9y agoMaybe because people subconsciously equate the % rise in wage to % rise in out of pocket expense e.g. if wages increase $4/hour (50% increase) that means the cost to buy that shirt will increase by 50%
- kelnos 9y agoCare to back that up? Every time I read something[1] -- reputable -- about, for example, restaurants testing out eliminating tipping in favor of paying employees a livable wage, they have to implement a mix of cutting staff (and making existing staff work harder), increasing prices (sometimes beyond the 18% you'd expect based on a common tip amount), and reducing quality of ingredients (or finding ways to consolidate menu items to reduce the variety of ingredients or increase scale). [1] https://www.nytimes.com/2016/12/13/dining/restaurants-no-tipping-service.html https://www.nytimes.com/2016/12/13/dining/restaurants-no-tip...