What proponents of any minimum wage seem to ignore is the fact that wages are not static within an economy.
They adjust dynamically, despite well intentioned albeit naïve efforts to the contrary, to eventually revert and deliver buying power equivalent to a minimum wage level.
CKE Restaurants and parent of Hardees and Carls Jr CEO, Andrew Puzder described the real minimum wage when asked what level he might prefer. He said in reality, “No, well, the minimum wage is zero. Because that’s what you get when 10,000, at Walmart, who don’t have jobs.”
From Redalertpolitics …
Andrew Puzder, the CEO of CKE restaurants which operates Hardees and Carls Jr., offered a sobering view of the impact of new minimum wage laws nationwide on CNBC’s “Squawk Box.”
“We need to protect young working Americans,” Puzder said. “As you make labor more expensive, you make automation a more viable alternative.”
Last week, Wendy’s announced it would provide kiosks to replace workers to all of its 6,000+ franchisees.
“The minimum wage is zero,” Puzder said, reminding the audience that if restaurants cannot afford the minimum wage, they provide no wage when they have to lay people off or not hire new employees.
As an alternative to growing the minimum wage, Puzder said he believes in expanding the earned income tax credit, which would give more tax benefits to those working in low-income jobs. “Warren Buffett supports it. I support it.”
Puzder joins a host of restaurant leaders warning about the negative impacts of raising the minimum wage on young workers. When Seattle recently raised its minimum wage, they saw the largest three-month job losses ever measured. The CBO recently released a report stating that, “Higher minimum wages may also have increased joblessness among young men.”
The left may want to discount Puzder’s opinion as coming from a greedy CEO, but remember, he represents thousands of small business owners who own individual restaurants. When people think of fast food, they think one big company operates and owns all the stores. Most often, that’s not the case. It is an individual small business owner, usually making little profit, who owns these franchise restaurants. When labor costs go up, they are often faced with a terrible choice: cut workers or go out of business.
See the full story at Redalertpolitics