A Little Café shows the USA the real cost of the Minimum Wage Increase!!!!

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A Little Café shows the USA the real cost of the Minimum Wage Increase!!!!

A Little Cafe That Sparked a Big Minimum Wage Debate

STILLWATER, Minn.—With its waitress and single cook, its retro-style booths with pale green cushions and its stainless steel wrap-around countertop, the Oasis Cafe could be any local diner in any town in the Midwest.

But what makes the Oasis Cafe different is an extra 35-cent “minimum wage fee” tacked onto each patron’s check.

A patron recently posted a photo of a receipt on Facebook and complained about the fee. The photo quickly went viral, and soon, the Oasis Cafe found itself in the center of the national debate over the minimum wage.

>>> Cafe Adds 35-Cent Surcharge to Offset State’s Minimum Wage Hike

Photo: The Oasis Cafe Facebook

MSNBC’s Joe Scarborough and others talked about it on TV. NBC’s “Today” show did a segment. And thousands weighed in through social media.

All because the Minnesota Legislature voted in May to raise the minimum wage to $8 per hour immediately and to $9.50 by 2017. That won praise from progressives coast-to-coast, including the White House, which is pushing for a $10.10 minimum wage at the federal level.

Oasis Cafe added an extra 35-cent “minimum wage fee” onto each patron’s check.

But the higher minimum wage means higher costs for many businesses in Minnesota, hitting small restaurants and other mom-and-pop shops particularly hard. This is the point Craig Beemer, owner of Oasis, is trying to make with his fee.

Beemer told the St. Paul Pioneer Press that he intended to draw attention to the added costs, but he doesn’t see himself as a political activist even though the higher wage mandate will cost him $10,000 this year.

“I’m not some (tea party) guy making a big stand,” he told the paper last week. “It’s been pretty shocking how this thing has blown up.“

140813_MinnWage_Watchdog_3

Read more on Watchdog.org.

 

As Milton Friedman noted, ‘The minimum wage law is most properly described as a law saying employers must discriminate against people who have low skills.’

I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism,  Greece,  welfare state or on gun control.

My Cato colleague, Mark Calabria, recently explained how the minimum wage destroys jobs, and I’ve written on several occasions why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And I’ve attacked Republicans for going along with these job-killing policies, and also pointed out the racist impact of such intervention.

But this cartoon may be a more effective argument for getting government out of the business of interfering with market forces. It’s simple, direct, and gets the point across. I’m not sure that always happens with my writing.

My former intern, Orphe Divougny, also did a very good job in explaining why politicians shouldn’t interfere with the right of workers and employers to enter into labor contracts.

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