Asian Weekly, a Seattle-area weekly, spoke with several workers who had recently had their hourly wage raised to $15 and experienced the negative consequences of the mandate.“Are you happy with the $15 wage?” I asked the full-time cleaning lady.“It sounds good, but it’s not good,” the woman said.“Why?” I asked.“I lost my 401k, health insurance, paid holiday, and vacation,” she responded. “No more free food,” she added.The hotel used to feed her. Now, she has to bring her own food. Also, no overtime, she said. She used to work extra hours and received overtime pay.What else? I asked.“I have to pay for parking,” she said. [Emphasis added.]Asian Weekly also spoke with a part-time waitress who said her tips were much less than she used to get.While the results of minimum wage hike at the SeaTac has been mixed at best, Seattle’s minimum wage increase is a socio-economic experiment that has much larger ramifications. In fact, it may ultimately cost more to the workers that the hike is intended to help as well as to the city at-large than its backers realize.
That’s just one example of many. This is simple: When the cost of wages rises too much then automated processes that used to be unfeasible become cost-effective. Then jobs are eliminated completely. Or sent overseas. But hey, the do-gooders can release endorphins and tell themselves how compassionate they are.
Leftists don’t do a good job at thinking into the future, and they literally fail at basic economics.