The concept of a living wage and a minimum wage are universally accepted on the left as great ideas. That they do not work in the real world and produce serious consequences is ignored. But now we have an example that is too easy to ignore:
The catchy Subway sandwich shop jingle involving a variety of foot-long sandwiches available for $5 doesn’t apply in San Francisco. The sandwich-making chain stopped selling the five-dollar footlongs in San Francisco due to the “high cost of doing business,” according to SF Weekly.
Signs posted at Subway sandwich shops sadly inform San Francisco patrons — we hear Willie Brown is a big fan — that “all SUBWAY Restaurants in SF County DO NOT PARTICIPATE IN Subway National $5.00 Promotions,” according to the newspaper.
Customers can still buy the sub of the month for $5, according to an employee at Subway on Market and Castro streets. Apparently, the city’s new minimum wage, raised to $10.24 as of Jan. 1, make $5 footlongs an impossible business model.
Unless you want tuna fish, which is the sub of the month. Yum.
I guess it is Karmic justice that this happens in one of the biggest liberal bastions in this country, and definitely not a coincidence, but I doubt the left will get the lesson.
It’s simple really: when government forces employers to pay too much for labor, especially labor that can be performed by a monkey because it requires no serious skills or abilities, the customer bears the brunt of that coerced transaction. The price of everything goes up, often by far more than whatever the jacked up minimum wage supposedly added to the pocket of the person making it.
Seriously, if the minimum wage/living wage concept worked, we could just make sure everyone was paid $60K or more a year for a 40 hour week, couldn’t we? Of course that $60K would not do much good, because it can’t happen in a vacuum. Once you force employers to pay out that much, they have to adjust their business model. For one, it means that less people will be employed, as employers adjust to accommodate this new burden, and then the employers will have no recourse but to jack up prices to make up the balance. And contrary to the belief collectivists have that otherpeople should just do things for the satisfaction of helping out, private sector owners will still need to make a profit too.
Only idiots that are totally disconnected from reality believe that all employers should be like government and provide non-profit make-work jobs that pay a living wage to everyone. That government can only do what it does now because it is taking a whole lot of money away from those that actually are being productive and actually have to make a profit to justify the effort to the owners, and that they constantly are trying to take more to feed the ravenous unproductive machine, gets ignored.
Seriously, is it so hard to understand that if everyone making at least $60K a year, the cost of living adjustment needed to accommodate this burden, suddenly makes the necessities that used to cost $X a month, now cost $10X? Don’t even start on luxury items. This logic is not that hard to work through.
I guess San Franers can now envy the rest of us for being able to get them $5 footlongs, while those of us that understand economics and the way the world works can laugh at their stupid move to have such a ridiculously high minimum wage. The fact is that someone ALWAYS pays for the free stuff the collectivists believe they are due.