The University of California- Berkeley, is learning about the effects of the minimum wage increases the hard way. Activists, social democratic economists, and even presidential candidates have claimed that such a boost in the minimum wage would benefit the economy.
Unless of course, you’re a college institution that has budget problems and need to let go a few hundred workers that maybe have to go someplace else to find similar work.
McDonald’s has recently announced a new store concept where traditional cashiers are being replaced by kiosks, not only to improve service, but to reduce labor costs.
Andy Pudzer, CEO of Hardee’s and Carl’s, Jr. franchises says, “With government driving up the cost of labor, it’s driving down the number of jobs,” Pudzer said. “This is the problem with Bernie Sanders and Hillary Clinton and progressives who push very hard to raise the minimum wage. Does it really help if Sally makes $3 more an hour if Suzie has no job?”