While progressives claim to be fighting for the little guy by demanding an increase in the minimum wage, the opposite ends up being true. Your $20 wage just turned to $0.
California raised the fast-food minimum wage so now Pizza Hut is laying off more than 1,200 delivery drivershttps://t.co/8TPQ4tkpMUhttps://t.co/8TPQ4tkpMU
— Not the Bee (@Not_the_Bee) December 27, 2023
“Multiple Pizza Hut franchises in California are planning to lay off delivery drivers as the restaurant chain braces for an increase in the minimum wage for fast food workers next year.
Several Pizza Hut operators filed notices to comply with the Worker Adjustment and Retraining Notification Act saying they were discontinuing their delivery services.
‘PacPizza, LLC, operating as Pizza Hut, has made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions,’ a federal WARN Act notice filed by the fast-food operator with the state’s Employment Development Department said, Business Insider reported.
Another operator, Southern California Pizza Co. also announced layoffs of around 841 drivers across the state.
The moves impact Pizza Hut locations in Los Angeles, Orange, San Bernardino, Riverside and Ventura counties.
Many of the franchises will rely on third-party delivery apps like Uber Eats, GrubHub and DoorDash.”While progressives pretend that every business owner is Scrooge McDuck, their policies hurt the very people they claim they are trying to help.
What a coincidence.
Most progressive lawmakers have no idea how the real world works. They think that they can come up with some arbitrary number in their head and everything will just play out how they dreamt it. Except, life is not a dream. Numbers are not arbitrary. These things matter.
“The layoffs announcements came months before most fast food workers in California will begin earning a minimum wage of $20 per hour, beginning in April. The increase was proposed as a way to offset the increasing cost of living for Californians,” Fox Business reported.
This won’t do any of that. Instead, it will do just the opposite and add more fuel to the fire. By increasing the minimum wage, how do progressives expect companies to pay for that? They will have to increase the price of goods. In effect, the price of everything else goes up. And as we have already seen, that $20 wage ends up becoming $0.
If prices go up, demand goes down. When demand goes down, so does the demand for labor. When there is less demand for labor, there are fewer jobs. When there are fewer jobs, fewer people are getting a wage.
This is not complicated. But only progressives can take this extremely simple concept and create chaos by pretending that passing legislation will somehow bypass all of this.
How many more businesses need to shut down? How many more people need to lose their jobs? How many more wages are we going to pretend will be increased? What will it take for progressives to live in reality?
When the government starts interfering with the “free market,” they don’t care to be bothered with how the economy works. Subsequently, we get mass layoffs.
That said, there is no reason why every job has to supply a “living wage.” Every occupation has some value to the employer. Labor also has value. Wages should be agreed upon by the employer and the employee. Not the government.
The last thing we need is progressives coming in to save the day because as it turns out, everything they touch ends up being destroyed.
