$20 Minimum Wage will leave many unemployed and business closures!

[Luvnit2]

(06-24-2024, 07:56 PM)FormerlyBengalRugby Wrote: Currently it is eliminating the cheap, fast food industry because their prices are approaching those of places like Longhorn, Applebee's, Outback, etc... thus driving down the demand for their product.

They reduced the pool of workers, via  artificially increasing the minimum wage, and then reduced their demand via price increases.

Genius!

My experience is when an industry like fast food is forced to pay workers more money, the other casual dining and fine dining will also be forced to pay more causing a spike in their prices. Fast food is at the bottom of the paid eat out category, anything impacting them with wages, will impact others in the industry as well.

The other issue is health insurance. Employers will be forced to reduce family coverage by paying less of the monthly premium or raising the deductible or both.

Get ready as predictions for health insurance are in the 8 to 10% increase range in 2025. People are dropping health insurance coverage now, many under 30 who came off Mom and Dad's plan at age 26. They are gambling they will pass less than their expensive premium if they get sick. They are banking on not being hospitalized. The other big driver of increased health insurance premiums is illegal immigrants using hospitals and they have no insurance. Guess who will pay for them, yes, the people with insurance and companies' premiums will spike.