How’s that new minimum-wage working out for you, Seattle?
The notion that employees are intentionally working less to preserve their welfare has been a hot topic on talk radio. While the claims are difficult to track, state stats indeed suggest few are moving off welfare programs under the new wage.
Despite a booming economy throughout western Washington, the state’s welfare caseload has dropped very little since the higher wage phase began in Seattle in April. In March 130,851 people were enrolled in the Basic Food program. In April, the caseload dropped to 130,376.
At the same time, prices appear to be going up on just about everything.
Some restaurants have tacked on a 15 percent surcharge to cover the higher wages. And some managers are no longer encouraging customers to tip, leading to a redistribution of income. Workers in the back of the kitchen, such as dishwashers and cooks, are getting paid more, but servers who rely on tips are seeing a pay cut.
Some long-time Seattle restaurants have closed altogether, though none of the owners publicly blamed the minimum wage law.
“It’s what happens when the government imposes a restriction on the labor market that normally wouldn’t be there, and marginal businesses get hit the hardest, and usually those are small, neighborhood businesses,” said Paul Guppy, of the Washington Policy Center.
And then there was this exchange I had with Asantha Cooray over on Twitter earlier in the week:
@acooray Then why do you say it's a good thing? Minimum wage is a war on the young. Keeps them off first rung of career ladder.
— Rand Simberg (@Rand_Simberg) July 22, 2015
@acooray Why should you get an exception? You should be protesting the terrible policy itself.
— Rand Simberg (@Rand_Simberg) July 22, 2015
@acooray It's not like you have some issue unique to you. Every employer has the same problem when the govt interferes with the market.
— Rand Simberg (@Rand_Simberg) July 22, 2015

