Must be a coincidence: San Francisco raises minimum wage, Chipotle’s raises prices

July 7, 2015
No way!!

No way!! Magical thinking doesn’t work??

I predicted this from the start. Oh, okay, I didn’t predict exactly *this*, per se, but, on the occasion of a popular San Francisco bookstore closing because of the minimum wage hike, I wrote the following:

Labor is a cost, because the business owner has to provide wages and, often, benefits that cost him more money. When a government mandate increases that cost, the business owner has three choices: pass the cost along to the customer, who may decide it’s too much and stop shopping there; cut employee hours and stop hiring to save on labor costs, thus costing potential jobs and putting a burden on workers still employed; and, finally, just decide it’s not worth it anymore and close up shop. In the low-margin bookseller business, Borderlands’ owner chose the last course as the only one viable.

Borderlands Bookstore chose option three: close the doors and put everyone out of work. It just wasn’t worth it to fight to stay in business anymore.

Let us not be surprised, then, that the Chipotle’s restaurant chain chose option one: pass the costs on to the consumer.

• In our weekly survey of ten of Chipotle’s markets, we found the company implemented price increases in half of the surveyed markets this week—San Francisco, Denver, Minneapolis, Chicago, and Orlando. In most markets, the price increases have been limited to beef and average about 4% on barbacoa and steak, toward the lower end of management’s expectation for a 4% to 6% price increase on beef.

• San Francisco, however, saw across-the-board price increases averaging over 10%, including 10% increases on chicken, carnitas (pork), sofritas (tofu), and vegetarian entrees along with a 14% increase on steak and barbacoa. We believe the outsized San Francisco price hike was likely because of increased minimum wages (which rose by 14% from $10.74 per hour to $12.25 on May 1) as well as scheduled minimum wage increases in future years (to $13 next year, $14 in 2017, and $15 in 2018).

Say it after me, kiddies: Economics wins; math wins. Rinse, repeat. No matter what the progressive tooth fairy told the San Francisco Board of Commissars Supervisors, when you mandate a wage increase, something has to give. In this case, the “giver” is “Workaday Joe,” the poor sap who has to bear the brunt of this and other increases to his cost of living.

Not that the limousine liberals of the Bay Area will notice, however: they either can afford higher prices, or they have expense accounts that can afford them. Regardless, they can continue feeling good about themselves.

And that’s all that matters to them.

via Moe Lane

RELATED: At Power Line, Scott Johnson looks at the killing of a woman by an illegal alien taking advantage of San Francisco’s “sanctuary” laws and meditates on its deep meaning.


Danish jihadis collecting unemployment while on jihad in Syria

May 19, 2015

“But first subsidize us, please.”

One of those “insult on injury” moments: these Muslims (1) despise Western liberal society and wish to overthrow it and replace it with one based on their totalitarian sharia law, but they’re quite willing to take our welfare money while they fight to destroy the hand that gives it to them.

We have met the useful idiot, and he is us:

A total of 32 ‘Danish’ terrorists have continued to claim state unemployment benefits amounting to kr.400,000 (£38,500) while fully employing themselves in the act of Jihad in Syria.

Documents acquired by a Danish Radio24syv show the security service and labour ministry had undertaken private discussions about the mispayments, presumably terminating them as they were discovered, but not before a significant amount of taxpayer money had been funnelled to enemies of the state.

Remarkably, out of the 32 fighters claiming Denmark’s generous £75 a day only one had been recognised as fraudulent and stopped by his benefits office. Somehow the remainder had managed to keep claiming, despite not even being in the country.

(…)

Claiming unemployment benefit while conspiring against the host country appears to have become a key part of terrorist life in many Western nations. ‘British’ hate preacher Anjem Choudary was recorded in 2013 making mockery of Westerners who worked regular jobs and paid taxes, and called on Muslims to claim “Jihad Seekers Allowance” instead of working.

Lenin once said “The Capitalists will sell us the rope with which we will hang them.” Well, the modern welfare state will do you one better Vlad.

We’ll also give them the money to buy that rope.

That’ll show’em. smiley headbang wall

Footnote:
(1) Not all Muslims, of course. But far too many at least support imposing sharia and recreating the caliphate, even if they’re ambivalent about waging violent jihad to do it.


#RaiseTheWage – Seattle pizzeria to close thanks to economic ignorance

April 29, 2015
"But at least we won the election! Obama!!"

“But at least they raised the wage!!”

To paraphrase Mark 8:36, “For what good does it do a city to raise the wages of it workers, yet forfeit the jobs?” In Seattle, San Francisco’s northern soul-mate, they may well be asking that very question:

It may be one of the first casualties of Seattle’s new minimum wage law. The owner of Z Pizza says she’s being forced to close her doors, because she can’t afford the higher labor costs.

Devin Jeran was happy to get a raise, when Seattle’s minimum wage went up to $11 an hour at the beginning of the month.

“I definitely recognize that having more money is important,” he says, “especially in a city as expensive as this one.”

Unfortunately, he’ll only enjoy that bigger paycheck for a few more months. In August, his boss is shutting down Z Pizza and putting him and his 11 co-workers out of work.

“Fortunately she keeps us in the loop, she didn’t just tell us last minute.”

Ritu Shah Burnham doesn’t want to go out of business, but says she can’t afford the city’s mandated wage hikes.

“I’ve let one person go since April 1, I’ve cut hours since April 1, I’ve taken them myself because I don’t pay myself,” she says. “I’ve also raised my prices a little bit, there’s no other way to do it.”

Like I’ve said many times before: the laws of economics cannot be repealed by legislative fiat. Raise the cost of labor, and businesses will be faced with a choice from among four options — pass the costs on to the consumer; reduce labor costs by cutting hours or whole jobs; eat the costs and accept lower profits; or cease doing business in that jurisdiction, either by moving or closing shop. Ritu Shah Burnham may have loved her business, or she may have hated it. But, regardless, she’s come to the conclusion it isn’t worth staying in business in Seattle. She isn’t the first, and other small businesses in other progressive cities have made the same choice.

And their workers have wound up looking for work.

What’s especially galling about this, aside from the hubris of thinking one can bend economic laws to one’s will, like a financial Lysenko, is that the progressive, social justice warrior-pols passing these laws don’t have to live with the immediate consequences: it’s not their profits that get hurt, not their business that becomes unsustainable, not their job that’s lost. They’re not the kid looking for his or her first job, only to learn the employer has cut back on hiring because he can’t afford as many employees as he used to. But these politicians do it while appealing to the god “Fairness,” assuming that it will all work out in the end with a wave of the hand, or that it will be the next guy’s problem. Whatever. They still get to hug themselves for being such wonderful people.

Their self-righteous arrogance is astounding and infuriating. It’s genuinely harming people


San Francisco raises minimum wage, kills beloved local bookstore, residents shocked

February 8, 2015
Didn't pay attention

Didn’t pay attention

Call it a “teachable moment?”

Due to the new increased minimum wage law in San Francisco, a beloved bookstore and mainstay of the Mission District has been forced to close its doors for good.

The minimum wage for San Francisco workers, currently at $11.05 an hour, soars to $15 an hour in July 2018. The store’s projected labor costs, reported ABC7 News, impelled Borderlands Bookstore to write its final chapter.

The store owner had this to say:

In November, San Francisco voters overwhelmingly passed a measure that will increase the minimum wage within the city to $15 per hour by 2018. Although all of us at Borderlands support the concept of a living wage in principal and we believe that it’s possible that the new law will be good for San Francisco — Borderlands Books as it exists is not a financially viable business if subject to that minimum wage. Consequently we will be closing our doors no later than March 31st.

But the best line came from one of the stunned customers:

“You know, I voted for the measure as well, the minimum wage measure,” customer Edward Vallecillo lamented. “It’s not something that I thought would affect certain specific small businesses. I feel sad.”

Evidently Mr. Vallecillo and the other voters of the Special City were asleep during their economics lessons — assuming that’s even taught anymore. Let’s review, shall we?

Labor is a cost, because the business owner has to provide wages and, often, benefits that cost him more money. When a government mandate increases that cost, the business owner has three choices: pass the cost along to the customer, who may decide it’s too much and stop shopping there; cut employee hours and stop hiring to save on labor costs, thus costing potential jobs and putting a burden on workers still employed; and, finally, just decide it’s not worth it anymore and close up shop. In the low-margin bookseller business, Borderlands’ owner chose the last course as the only one viable.

(Aside: It wouldn’t surprise me if one of the Leftists on the San Francisco Board of Supervisors is considering a bill to prevent owners from doing just that. Can’t let the Kulaks get away with acting as if they own their own property, after all.)

In a functioning, literate polity that teaches its young fundamental lessons of civics and economics, an informed electorate could have looked at that proposal and said, “Nah, that’s going too far.” Instead, we have voters who feel good about themselves  for voting themselves more consequence-free stuff, and then feel sad when the consequences arrive.

Maybe they’ll learn something from the experience.

Nah.

RELATED: This isn’t the first time we’ve seen the consequences of ill-thought policy regarding the minimum wage. Seattle voted a high minimum, and now businesses are considering leaving. Some companies are considering replacing now-expensive minimum-wage workers with computerized kiosks. Los Angeles wants to raise the minimum to $13.25. Can’t wait to see how many entry-level jobs are lost thanks to that, or how many low-skill young workers looking for their first job are priced out of the market because of it. More from Ron Radosh, and more posts on the minimum wage.

(Crossposted at Sister Toldjah)


Good News: the Iranian-allied Yemeni rebels are really moderates we can work with!

January 26, 2015

Last week, Iranian-backed “Fiver” Shia rebels captured Yemen’s capital and forced the president to resign. Given that the former government had (mostly) cooperated with our counter-terrorism efforts and given also that the Houthi rebels were supported by our enemy, Iran, one might expect them to be hostile to us.

The New York Times, however, is here to tell us we’re wrong. The good news? They’re really moderates!

But for all their harsh sloganeering, the Houthis may be a lot more moderate than [their motto] suggests, according to many diplomats and analysts who have followed them closely. They say it would be premature to dismiss them as Yemen’s Hezbollah, despite their alliance with Iran.

Of course, we all remember those “moderate Islamists” in Syria we were so happy to work with and train, right? That’s sure worked out well.

Anyway, back to Yemen. Let me ask — does this look at all “moderate” to you?

Yep. The very soul of moderation. Why, I bet they belong to their local Kiwanis Club, too.

It’s said the definition of madness is doing the same thing over and over again and expecting different results. The coffee table version of that is obviously illustrated with pictures of The Times and its “experts.”

via Patrick Poole, who has much more


Surprising no one, California loses another business to Texas

July 20, 2014

Moving

This time, Perry’s Poachers have snagged Omnitracs LLC of San Diego, a fleet management firm that will be moving to Dallas and taking 450 jobs with it:

Fleet management software company Omnitracs LLC will relocate it headquarters to Dallas from San Diego, creating 450 jobs and $10 million in capital investment, Gov. Rick Perry’s office announced Friday.

The company will move into KPMG Centre downtown.

Omnitracs is the latest in a wave of California relocations to North Texas announced this spring and summer.
The Texas Enterprise Fund is providing a $3.9 million incentive to attract Omnitracs. The new headquarters will house jobs in a variety of high-paying fields, including engineering, research and development and finance.

Omnitracs provides fleet management solutions for the trucking industry. Its services include software applications, GPS fleet tracking, platforms and information services.

Omnitracs is just the latest in a long line of businesses that have fled or are about to flee the once-Golden State. The article lists others, including Toyota, and mentions Vista Equity Partners, a California firm that specializes in buying firms and moving them to Texas.

Yes, the one business that California can keep is one that helps others get the heck out.

Well, we bloody well deserve it, with a business climate that’s designed to drive people away, not bring them here. I’m old enough to remember when California was a place to people rushed to, in order to build a future.

Now, thanks to 40 years of progressive misrule, they rush to get out, in order to save what future they have left.

via Stephen Frank

RELATED: Victor Davis Hanson, a fellow Californian, on our frivolous legislature. Must reading.

(Crossposted at Sister Toldjah)


Rewarding failure: GSA awards big contract to designer of #Obamacare web site

July 8, 2014
Obama foreign policy advisers

GSA contracts oversight team

Because they did such a great job with the federal Obamacare web site, why shouldn’t they be given the chance to compete for billions more of our tax dollars?

FAIRFAX, VIRGINIA, Jul 08, 2014 (Marketwired via COMTEX) — CGI Federal Inc. (CGI) GIB -1.59% CA:GIB.A -1.49% announced today that the General Services Administration (GSA) has chosen the company as a prime contractor under a new contract vehicle known as One Acquisition Solution for Integrated Services (OASIS). The multi-award contract has an unlimited ceiling, allowing CGI to compete for billions of dollars in complex professional services task orders across all agencies in the U.S. federal government.

GSA oversees the business of the federal government, among other things supplying federal purchasers with cost-effective, high-quality products and services from commercial vendors. CGI is one of 74 awardees under OASIS, an “indefinite delivery indefinite quantity” (IDIQ) contract that will allow awardees to compete on a range of program management, management consulting, logistics, engineering, scientific and financial management services. Awardees will also be able to offer technology solutions as an ancillary service. For the first time, agencies will be able to purchase high-value professional services along with supporting IT solutions through a single contract, saving customers time and money.

The Obamacare site rollout was such a fiasco that the Federal government refused to renew its contract with CGI when it expired last February. And this isn’t the only time they’ve been told to go away: the government of the Canadian province of Ontario fired CGI for missed deadlines and a failure to deliver a functional product, an online medical registry.

So, naturally the GSA decides that CGI warrants even more chances to deliver “quality IT solutions.” This being the same GSA that’s managed our dollars so well in the past.

What could go wrong?

via Iowahawk

(Crossposted at Sister Toldjah)


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