But alas, prices are not play things, and such measures are bound to reap a range of deleterious effects, from raised consumer prices to increased unemployment to reduced working hours to outright business closures. Contrary to the popular narrative, those consequences tend to hit small businesses and less-skilled workers first and hardest.
With the recent laws, the destruction has already begun. To illustrate the damage thus far, the Employment Policies Institute (EPI) is cataloging hundreds of stories on its Faces of $15 website, including a range of videos highlighting the frustrations and responses of business owners, employees, and faithful customers alike.
In the following 5 case studies, we see but a glimpse of the minimum wage’s cramping effect on human enterprise, creative service, and economic diversity.
1. Abbot’s Cellar
For Abbot’s Cellar, a newly founded restaurant in San Francisco, the recent wage hike made their start-up model unfeasible, even despite tremendous initial success. “How are businesses that have practically no margins as is – mom and pops, small businesses – how are they supposed to just absorb that?” asks Nat Cutler, one of the owners.
“San Francisco is a city that seems like it’s supposed to be built on a Bohemian, small-business, mom-and-pop-type vibe,” he continues. “That’s the culture of the city. I worry that the type of change that’s happening is going to take away from the great culture that was here…I wish a little more thought would be put into the long-term impact.” (more…)