Wednesday, April 4, 2012

Minimum Wage Laws Cost San Francisco Their Five-Dollar Foot Longs

Minimum wage laws have consequences. There are always to two sides to the ledger, and forcing employers to pay a minimum amount for workers mean that people or tasks with less value will never be hired. It also means higher priced good, as Subway being forced to discontinue their promotion shows clearly.

http://hotair.com/archives/2012/03/30/the-high-cost-of-business-subway-ends-everyday-five-dollar-footlongs-in-san-francisco

"The San Francisco Weekly reports that the Subway sandwich shops in San Francisco have dropped out of the “every day” portion of the $5 footlong program:

It seems you can have the nation’s highest minimum wage and a $5 footlong — but you can’t have them both.

San Francisco Subway patrons hoping to gorge themselves on too much of a mediocre sandwich are being greeted by signs like the one above noting that “due to higher cost of doing business in San Francisco” obtaining a $5 footlong will require a trip over a bridge, through a tunnel, or onto the Peninsula.

The “higher cost of doing business in San Francisco” is, in large part, the aforementioned highest minimum wage of $10.24/hour, $2.99/hour higher than the federal minimum wage, $2.24/hour higher than California’s state minimum wage, and $1.20/hour higher than the highest state minimum wage, found in Washington State. Never mind that the cheap, if annoying, feature of Subway is responsible for Subway’s growth during the recession and now tepid recovery. Never mind that a couple of those subs are actually relatively healthy dietary choices. The leaders of San Francisco have decided that the always-elusive chase for a “living wage” must remain at full tilt, even as those who would otherwise benefit from not being forced on the treadmill have to spend more for basic necessities like food.
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