Quote:
Originally Posted by Villages Kahuna
Ultimately all the cash dumped into the economy as the result of the economic stimulus bill will accomplish the objective of kick-starting virtually every economic segment and business. But like lots of things that are the product of political negotiations, often there are unintended consequences. That’s probably not a reason not to have passed the stimulus legislation, just a temporary unintended consequence.
Part of the cause of the problem You observed might also be the refusal of Congress to pass reasonable minimum wage legislation. If Outback was paying $15 an hour rather than a much lesser amount, they would be having less difficulty getting employees. Of course another unintended consequence is that your steak would probably be more expensive. But at least you’d get reasonable service.
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If a server would be making $15 an hour I'm not going to tip on top of what the steak would cost due to higher labor costs. I seriously doubt service would improve to any noticeable degree. Their reply to being criticized for poor service would be "what do you expect for minimum wage?"
Raising the minimum wage to $15 will result in the cost of goods and services going up and people now working for $15 would want a raise because apparently their services are worth more than minimum wage. In a few years the $15 will be just like the $8 + being paid now. Doesn't take a lot of rocket science to figure that out.