Home
/
RELIGION & LIBERTY ONLINE
/
Will Seattle’s New Minimum Wage Law Cause Restaurants to Be Replaced by Soup Kitchens?
Will Seattle’s New Minimum Wage Law Cause Restaurants to Be Replaced by Soup Kitchens?
Jan 11, 2025 7:57 PM

The people of Seattle recently voted to put their poorest residents out of work by increasing the minimum wage to $15 over the next seven years. But wealthier residents may soon find out just how quickly it will affect them too. A number of area restaurants are already shutting down, and many others will soon closing their doors. As Anthony Anton, president and CEO of Washington Restaurant Association, says, “It’s not a political problem; it’s a math problem.”

[Anton] estimates that mon budget breakdown among sustaining Seattle restaurants so far has been the following: 36 percent of funds are devoted to labor, 30 percent to food costs and 30 percent go to everything else (all other operational costs). The remaining 4 percent has been the profit margin, and as a result, in a $700,000 restaurant, he estimates that the average restaurateur in Seattle has been making $28,000 a year.

With the minimum wage spike, however, he says that if restaurant owners made no changes, the labor cost in quick service restaurants would rise to 42 percent and in full service restaurants to 47 percent.

“Everyone is looking at the model right now, asking how do we do math?” he says. “Every operator I’m talking to is in panic mode, trying to figure out what the new world will look like.” Regarding amount of labor, at 14 employees, a Washington restaurant already averages three fewer workers than the national restaurant average (17 employees). Anton anticipates customers will definitely be tested with new menu prices and more. “Seattle is the first city in this thing and everyone’s watching, asking how is this going to change?”

You may have the smartest lawyers on retainer, the most-connected lobbyists on your payroll, and the most powerful politicians in your pocket, but it won’t help you change the law of unintended consequences. When you muck around and make changes to plex system—such as labor pricing—you’re bound to create problems like the one’s Seattle’s restaurateurs will be facing. The law of unintended consequences always gets the final say.

If it were a matter of mere ignorance this new law might be excusable. If the supporters of the $15 minimum wage were able to honestly say, “We couldn’t have known raising the wage would put people out of work” we could let them off the hook. But they knew—or should have known—because it has been pointed out to them time and time again.

But the wealthy won’t suffer for long. What will happen is that the activists who pushed so hard for wage increases will simply leave the city. Once their favorite bars and restaurants shut down, they’ll move to another city where the cost of living isn’t inflated by absurd wage floors. The people who will be left behind to suffer the consequences will be the working poor—many of whom were priced out of their jobs.

When the wage increase is modest (around 20 percent), debates about the minimum wage remain in the realm of political debate. But when the increase is a 61 percent increase over seven years (just enough time for the businesses to flee the city), it es a moral issue. We shouldn’t stand by and let the poor suffer because the economic illiteracy of people who have “good intentions”; we have a duty to speak up on behalf of the urban poor. We should be clamoring for this minimum wage law to be repealed before the law of unintended consequences takes goes into effect. If we wait too long the only restaurants left in Seattle may be soup kitchens.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
If You Love Babies You Should Love Economic Growth
Today you’ll be hearing a lot aboutthis latest bit of bad —really, really bad —economic news: Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 0.1 percent in the first quarter (that is, from the fourth quarter of 2013 to the first quarter of 2014), according to the “advance” estimate released by the Bureau of Economic Analysis. There are a lot...
Why I Appreciate Pope Francis (Even When We Disagree)
“Inequality is the root of social evil,” tweeted Pope Francis earlier this week, raising eyebrows across the globe. Like many conservative Christians I expressed my disagreement on social media. “Um, no it’s not. Hate and apathy are the roots of social evil,” I said on Twitter. I also wondered whether Francis had “traded the writings of Peter and Paul for Piketty”—the French Marxist economist whose latest book on the evils of inequality has e a worldwide bestseller. Some Catholics, such...
C.S. Lewis on the Progressive’s Regress
Over at Christianity TodayArt Lindsley has a good piece on how C.S. Lewis’s support for true progress led him to oppose Progressivism: Some of Lewis’s most pointed criticisms of “progress” came when he wrote on economics and politics, even though he did not ment on these topics. When he was invited by theObserverin the late 1950’s to write an article on whether progress was even possible, he titled his contribution “Willing Slaves of the Welfare State.” In this essay Lewis...
Fossil Fuel Follies
The religious crusade against fossil fuels and various methods of extracting it to heat and light our homes, offices, and factories continues apace. The 2014 proxy shareholder season is a veritable spider web of networked religious-affiliated activist groups decrying coal, natural gas, oil, hydraulic fracturing and mining. Ceres, for example, reports “35 institutional investors have filed 142 resolutions in a coordinated effort to spur action by panies” on what it calls climate-related measures. Based in Boston, Mass., the nonprofit group...
The Acton University Experience: ‘You Really Need to Meet These People’
Today on the PowerBlog, we’re continuing our Radio Free Acton series featuring people who have attended Acton University and their experiences. As we close in on the deadline for registration for AU 2014, we hope that as you hear from people who have been impacted by the experience of Acton University, you’ll considerregistering for AU 2014and making the experience your own this year. Today’s podcast features Father Hans Jacobse, an Orthodox priest and the founder of the American Orthodox Institute,...
Honoring God as a Ranch Hand and Wrangler
In a video selected as the winner of a contest sponsored byThe High Calling, Dylan Weston, a ranch hand and wrangler from Pennsylvania, shares how his work glorifies God and adds value to others. This is a great example of how we as Christians might begin to view our role in the bigger picture, particularly as it applies to the economies of creative service and wonder. Dylan does not view his service as a mere means to personal fulfillment or...
Tornadoes, Disaster Relief, and the Power of the Christian Community
At the bottom of this storm and tornado roundup from The Weather Channel, there is a powerful slideshow on the devastation in Arkansas, Mississippi, and Alabama. The death count in the region stands at 31. Mississippi’s Governor Phil Bryant described yesterday as “The most active tornado day in Mississippi history.” Some people forget that it is denominational church agencies that often are the first to meet the material needs and fort to the afflicted. Southern Baptist Disaster Relief is well...
Inequality and the Hunger Games
When does inequality e unjust? In this week’sActon Commentary, Jordan Ballor considers that question in the context of Pope Francis’s teachings and Suzanne Collins’ Hunger Games trilogy: Earlier this week, Pope Francis logged onto his @Pontifex Twitter account to declare that “inequality is the root of social evil.” This was of a piece with his November apostolic exhortation, “Evangelii Gaudium,” in which he asserted that “inequality is the root of social ills.” Within the deeper context of his exhortation, it...
Let’s All Join the Tenth Commandment Club
In our modern era, the ancient sin of covetousness primarily manifests itself in three forms: greed, theft, and arguments about inequality. The greedy selfishly desire to acquire what others have, thieves illicitly acquire what others have, and equality advocates want the government to redistribute what others have. It would be unfair, of course, to assume that all critics of inequality are driven by covetousness. But if you stripped away that sin as a motivation, the number of people who care...
Does Religion Do Us Any Good, Even If We’re Not Religious?
Is there any societal reason to protect religion? That is, do we get anything out of religion, as a society, even if we’re not religious, and is that “anything” worth protecting? Mark Movsesian thinks so. In First Things, Movsesian says religion does do good for a society – a good that is worthy of protection. Religion, munal religion, provides important benefits for everyone in the liberal state—even the non-religious. Religion encourages people to associate with and feel responsible for others,...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved