Free Markets, Free People

Freedom and Liberty

Former McDonald’s CEO goes one for two

Ed Rensi is the former CEO of McDonalds and he commented on the reality of a $15 minimum wage and how most businesses will handle it:

I was at the National Restaurant Show yesterday and if you look at the robotic devices that are coming into the restaurant industry — it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who’s inefficient making $15 an hour bagging French fries — it’s nonsense and it’s very destructive and it’s inflationary and it’s going to cause a job loss across this country like you’re not going to believe.”

He continues, “It’s not just going to be in the fast food business. Franchising is the best business model in the United States. It’s dependent on people that have low job skills that have to grow. Well if you can’t get people a reasonable wage, you’re going to get machines to do the work. It’s just common sense. It’s going to happen whether you like it or not. And the more you push this it’s going to happen faster.”

That’s the one he got right.  Here’s the one he got wrong:

I think we ought to have a multi-faceted wage program in this country. If you’re a high school kid, you ought to have a student wage. If you’re an entry level worker you ought to have a separate wage. The states ought to manage this because they know more [about] what’s going on the ground than anybody in Washington D.C.

Good grief, Mr. Rensi, why not let the market handle it?  You know, supply and demand?  What the heck is wrong with you?  You wouldn’t even be discussing this if government hadn’t intruded and decided unilaterally that you should pay your employees a certain amount of money for their labor.  It is because of government you’re even discussing automation above.  And now you think government – even state government (you know like California or New York?) – would be the solution?

Really?

And you were a CEO of a major corporation?

Wow.

~McQ

Windpower: Danes out while US has new plans to extend endangered species kill license for 30 years

Denmark is abandoning wind power.  Up till now, Danes had been paying very high energy bills, 66% of the bill being “green taxes” and only 15% going to energy generation.  Under pressure from Danes, who enjoy the highest energy prices in Europe, Danish politicians are abandoning wind power as “too expensive”:

Denmark’s government abandoned plans to build five offshore wind power farms Friday amid fears the electricity produced there would become too expensive for Danish consumers.

“Since 2012 when we reached the political agreement, the cost of our renewable policy has increased dramatically,” said Climate Minister Lars Christian Lilleholt, a Liberal Party politician representing the country’s minority government, according to Reuters.

The government would have had to pay $10.63 billion to buy electricity from the five wind farms — a price deemed too expensive for consumers who already face the highest electricity prices in Europe.

“We can’t accept this, as the private sector and households are paying far too much. Denmark’s renewable policy has turned out to be too expensive,” Lilleholt said.

Imagine that.  The fact that “renewable energy” forms have been installed doesn’t equal “cheap energy” (much like ObamaCare doesn’t mean “cheap insurance”, even though you were led to believe it would).  And all of them have required some sort of subsidy to survive – which means they’re obviously not self-sufficient (that meaning that they can’t produce a product at a price that consumers are willing to pay and make enough profit to ensure their continued production).  In fact, I’m having a very rough time finding any “renewable” source of energy that is self-sufficient.

Of course, the reason for the emergence of “green” and “renewable” energy sources is the “global warming” scam.  That scam allows the environmental extremist agenda full run with your money.  And this, so far, has been the result (don’t forget Spain).

Meanwhile, in the US, we’re apparently going to continue with the fiasco and while we’re at it, kill more endangered species by extending the license to kill them that wind farms already have to 30 years:

The U.S. Fish and Wildlife Service, the agency charged with protecting bald and golden eagles, is once again trying to make it easier for the wind industry to kill those birds.

Two weeks ago the agency opened public comment on “proposed improvements” to its eagle conservation program. It wants to extend the length of permits for accidental eagle kills from the current five years to 30 years. The changes would allow wind-energy producers to kill or injure as many as 4,200 bald eagles every year. That’s a lot. The agency estimates there are now about 72,434 bald eagles in the continental U.S.

And the media, which will make sure to run the picture of an oil soaked bird above the fold on page one and in the lead on newscasts, is not interested in this story at all.  As for the enviros? Well, much like the so-called feminists were willing to remain silent about Bill Clinton’s sexual abuse of women, they must also have malleable principles that allow them to sanction at least 4,200 chopped up bald eagles a year for the sake of “green energy”.

~McQ

The Alarmists try RICO, the “deniers” counter with SLAPP

I’m sure you’ve been following this bizarre story about the left’s attempt, through various blue Attorney’s General, to use the RICO statute to persecute prosecute so-called “climate deniers”.  One of the targets was the Competitive Enterprise Institute.  CEI wasn’t going to take it lying down and punched back:

A libertarian nonprofit group is seeking damages from the U.S. Virgin Islands’ chief law enforcement officer, alleging a politically motivated legal campaign designed to stifle the group’s policy advocacy activities.

Attorneys representing the Competitive Enterprise Institute filed a motion in a Washington, D.C. court on Monday alleging that Virgin Islands Attorney General Claude Walker violated a D.C. law designed to prevent frivolous legal actions targeting policy groups’ rights to free speech and government redress.

The motion is the latest chapter in a developing legal battle between conservative and industry groups that oppose Democratic attorneys general in 17 states who are pursuing racketeering charges against oil giant Exxon Mobil.

Walker subpoenaed CEI last month as part of the anti-Exxon campaign. He demanded a decade’s worth of internal documents and communications about the group’s work on energy and environmental policy.

CEI told Walker to stuff it and shot back:

Andrew Grossman, a BakerHostetler attorney representing CEI, called the subpoena “offensive,” “unlawful,” and “un-American” in an April reply. He vowed to fight the subpoena, which was filed in D.C., where CEI is headquartered.

An attorney representing a group of AGs, including Walker, in their Exxon probe replied on Friday, telling CEI that it is abandoning its subpoena but reserving the right to restart the effort at any point in the future.In response, Grossman and his BakerHostetler colleague David Rivkin filed a motion to vacate the subpoena entirely. They are also asking the court to reimburse CEI for its legal fees and levy additional penalties on Walker’s office as a means of discouraging abuses of the D.C. legal system.

Walker’s “bad faith purpose in wielding this Court’s power to subpoena … warrants sanctions,” the attorneys wrote in a Monday motion. “Sanctions are necessary here ‘to punish abuses of the judicial process and to deter future abuses,’” they wrote, quoting a prior case involving D.C.’s anti-SLAPP statute.

The acronym SLAPP stands for “strategic lawsuit against public participation,” and refers to efforts to shut down an opposing party’s speech or political advocacy through frivolous lawsuits.

This is what has to be done to stop this foolishness.  All it costs the AG is your tax money.  So, in reality, it cost them nothing.  But the people or organizations they target actually end up having to reach deeply into their own pockets to defend themselves from these frivolous lawsuits.

Here’s hoping CEI is able to whack this nonsense in the head quickly.  As their attorney said, it’s “offensive”, “unlawful” and “un-American.”  It is also an obnoxious and obvious abuse of power.  Time to reel this bunch ideological hitmen back in and do quickly.  And it wouldn’t hurt at all if the lawsuit found some of the AG’s personally responsible and made them pay fines out of their own fund for the abuse of their office (not that it will happen … I understand that, but I guy can wish).  Short of that, running them out of office will suffice.

~McQ

Venezuela: How bad is it?

It’s bad:

Despite breathless coverage of Venezuela’s vanishing supply of condomstoilet paper, and beer, perhaps the country’s most debilitating shortage has been that of food, which appears to be a motivating factor for growing antigovernment sentiment.

“I want the recall because I don’t have food,” one woman told the Venezuelan commentary site Contrapunto, referring to a referendum to recall President Nicolas Maduro that has so far reportedly drawn more than a million signatures in support.

“We want out of this agony — there is too much need in the streets,” another woman told Contrapunto. “We have much pressure because there is no food and every day we have to ask ourselves what we are going to eat.”

Many families have been reduced to one meal a day.  In a verdant and rich country, this is what socialism has brought them too.

And the idiocracy in charge?  Well, they’re reduced to abjectly stupid moves like this in an attempt to forestall the inevitable:

To try to shore up wages, Maduro on Sunday announced a 30% minimum-wage increase, which comes after a 25% hike on March 1 and is the 33rd wage boost since 1999. Beginning this month, workers and pensioners will earn 15,051 bolivars a month — only about $13, based on the black-market conversion rate, according to El País.

That amount may become even more paltry. Venezuela’s inflation rate in 2015 was 180.9%, according to the central bank, and the International Monetary Fund expects inflation in the country to reach 720% this year.

The acquisition of food has become the primary function of Venezuelans:

“I have to leave the house at 5 a.m., facing the risk of being killed, to stand in line all day and only buy two or three products,” Jhonny Mendez said.

Do yourself a favor and look through the pictures of the amount of food several families have in their house in a day that accompany the above article..  

What has happened in Venezuela is criminal … there’s no other word for it.  Chavez was a criminal and his henchman now in charge is also a criminal.  What they’ve done to that country is unforgivable.  And it was all predictable … in fact, it was predicted.  I also have a feeling it isn’t going to end well:

Meanwhile, the return El Niño, a cyclical weather phenomenon, leads to widespread power outages across the country as the authorities’ incompetence and corruption are laid bare. 76 percent of Venezuelans have fallen into poverty and 13 percent eat only twice a day. Maduro’s government is rejected by 85 percent of the population.

Looting last week was contained but the Governor of Lara, Henri Falcón, a former Chavista, noted that “this is a thousand times worse than the reasons that led to the ‘Caracazo.’” He added that, at any moment, the political, social and economic crisis may lead to a conflict of incalculable consequences.

~McQ

“Pawternity” leave the next goal of the entitled generation

It seems, this week, that I’m all about proving Shark’s point that “every time I think we’ve reached peak stupid, something new comes along to prove me wrong.”  Well here you go, Shark, the shot:

Bringing my adopted cat, Jameson, home with me in 2014 was one of the happiest days of my life.

Having to go back to work two days later was one of the worst.

While the rest of the country is hung up on the necessity of maternity leave — or even the newly coined “meternity” — one group continues to be overlooked when it comes to paid time off from work: new pet owners.

“Paw-ternity” leave is already a reality in the UK — the US pet-insurance provider Petplan found that nearly 5 percent of new pet owners in the UK were offered time off to care for their four-legged kids. (Not surprisingly, the UK is also light-years ahead of the US when it comes to maternity leave, offering up to 39 weeks of paid leave for new mothers.)

It’s time for the US to hop aboard the “paw-ternity” train. It’s not just because I want to stay home and cuddle on the couch with my new feline (which I do). When I adopted Jameson, he was 6 years old and had spent the previous year of his life in an animal shelter. He was suffering from several health problems after being neglected by his previous owner — and was skittish, nervous and uncertain about why he was suddenly being transported to a strange new home.

And the chaser:

Many pet experts agree that new pet owners should try their best to clear their schedule for the first few days following a new animal’s arrival. Not only can pets benefit from the comfort of being cared for by a loving parent after spending time in an animal shelter, but they require attention to be properly housebroken and trained so they don’t become a public nuisance.

Dear silly young woman who seems to think her choices should be paid for by others.  If you want to stay home with your new pet, companies have a thing called “vacation days.” You might have heard of them.  That’s right, you’re paid and everything.  And it isn’t like you can’t plan this sort of thing out.  You know, “hey, I have 10 days of vacation saved and I want a new pet – perfect, I’ll take vacation and stay home with it”.   Then you can housebreak the little nipper and prevent it from becoming a public nuisance at the same time.  See how that works?

What doesn’t work is this sort of demand that others take up the slack and pay your for time off just because you’ve made a choice that has absolutely nothing to do with them or your work.

But we all know the real bottom line here.  The equating of pets with children gives the entrée into demanding the same sort of treatment that new mothers get.  Because, you know, going to the pet store and pointing to a cat in a cage is just the same as carrying a baby for 9 months and then bearing the child.  So let’s face the truth.  You want time with your pet but you don’t want to spend your vacation days to do that.

What does that make you?  Well mostly a spoiled and entitled child who will one day live in a ramshackle house with 100 cats, living on a pittance of Social Security (because you had difficulty holding on to work) and rail against the world for not giving you the time you demanded when you only had one.

~McQ

Guns rob attackers of their “right to a fair trial”. No. Really.

Yesterday, the Shark said: “Every time I think we’ve reached peak stupid, something new comes along to prove me wrong.”  Well, to prove Shark’s point, I found this:

The Second Amendment is highly contested. There is no doubt that people do have the right to carry and have a stockpile of guns (“the right of the people to keep and bear arms”) and a state has the right to organize a well-regulated Militia. But, the main issue is on the right to self-defend with a firearm.

The main problem with the notion of self-defense is it imposes on justice, for everyone has the right for a fair trial. Therefore, using a firearm to defend oneself is not legal because if the attacker is killed, he or she is devoid of his or her rights.

To say this is probably one of the stupidest things I’ve ever read would be an  understatement.  It is certainly an indicator of how far the left will go in it’s “reasoning” to deny you the use of a gun and your basic right to self-defense.  I said “basic” but self-defense is indeed an inherent right.  You need no one’s permission to exercise it because you own your life and without protecting it, you would obviously cease to exist.

That apparently is lost on this statist rube.  Let’s lay this out a little differently.  This Huffington Post writer is attempting to persuade you that a civil right (an actual societal construct applicable only to a particular society) is somehow superior to an inherent right (a right that is yours without anyone or anything granting it.   It is your existence and its requirements for survival that “grant” it.  The right is applicable to all mankind without exception. It can be violated, but it can’t be taken away.).  We have an idiot here who claims that if you defend yourself your action “imposes on justice”?

Wtf?  Your action, especially if you successfully defend yourself, IS justice!  And how you do it or with what is irrelevant!  Gun?  Knife?  Crowbar?  Throat punch?  Each and every one of those may “impose on justice”, as he defines it and is your right.  But this dolt tries to sell that as a primary reason to restrict the ownership of guns.  Only cops should have guns and you should defer your “self-defense” to them!

This is a person that has no concept of inherent rights, what they mean and why they’re necessary.  So he writes slop like this!  And it gets worse as his “reasoning” stays in the ditch and hits a concrete culvert several times.  No airbags deployed because his ideas weren’t worth spit to begin with and certainly not worth saving.

So Shark … suck it up bud.  We’re not even close to “peak” stupidity.  The stupid machine keeps on churning and the manure keeps on plopping out.

~McQ

Two real world examples of socialism and big government that leftist voters ignore

It isn’t like you have to go back ages in history to see governing models that don’t work.  The recent end of the Cold War provided perfect examples.  But they collapsed in the ’80s and our younger generation has no memory of the hardships the people of those countries suffered under socialist totalitarian rule.  They also give indications that they think government is the solution for all our problems instead of understanding that for the most part government is responsible for many of our problems.  It seems they think that if we just had big government, everything would be lovely.

The “Feel the Bern” crowd are enamored with “social democracy”.  They like to point to Europe and pretend that the system is a desirable one.  But instead of pointing to Europe, perhaps they should cast their eyes to the south – to Venezuela.  They might find it, oh, I don’t know, enlightening:

In 1999, Venezuela was taken over by Socialist who promised that he would punish big corporations and redistribute wealth to “the people” to provide health care, education, infrastructure, and even out income inequality. (Sound familiar?) The American Left cheered. Celebrities like Sean Penn and Danny Glover praised his Democratic Socialist economic measures. Chavez systematically nationalized the oil, banking, agricultural, food distribution, telecommunications, and power industries in Venezuela; because running them as social democratic communes would eliminate “greed” and give the people lower cost goods and services. The American Left praised him for “democratizing” the Venezuelan economy. When Chavez shut down opposition TV, radio, and newspapers the American Left defended it as necessary to protect the Revolution.

The American Left likes to pretend now that Venezuela isn’t a real example of Social Democracy; but up until the economy collapsed (as every sensible person knew it would) they were Chavez’s biggest cheerleaders, as the links above (or any Google search) shows.

It is, of course, a horrific example of a socialist takeover, but a typical one.  A once well-off country with the most proven oil reserves in the world reduced to literal poverty.  Food shortages, other commodity shortages, you name it, you can’t get it there.  Oh, and about those oil reserves?  Well it seems that Venezuela has an energy crisis.  And the government’s solution?  Well it said everyone should take Fridays off (yeah, screw productivity – that’s a capitalist construct) and this bit of brilliance:

Last week, his government said it was shifting its time zone forward by 30 minutes to save power by adding half an hour of daylight.

Socialism … in Venezuela’s case they’re actually feeling the burn.

Then there is Brazil.  Brazil is the lover of “big governments” wet dream.  Or as it has now become, a nightmare.  Brazil is a failing state and the primary reason that it is failing is because of the premise under which it has operated for decades.  Big government paternalism:

For all its modernist appeal, it was one more expression of the country’s long and troubled attachment to the concept of a giant paternalistic state, responsible for managing the affairs of the entire society, from its biggest companies to its poorest citizens.

[…]

“The problem is, from time immemorial, Brazil’s political leaders only see one way forward, the growth of the state,” said Fernando Henrique Cardoso, a former leftist intellectual who sought to reduce the size of Brazil’s government while president from 1995 to 2002. “But you need another springboard for progress, that doesn’t exclude the state but that accepts markets. This just doesn’t sink in in Brazil.”

Many wan’t to blame Brazil’s problems on corruption like the corruption scandal now rocking the nation.  But the corruption arises from the base problem … big, unanswerable government:

While many observers of Brazil’s predicament have focused on the country’s corruption, that may miss the point. Brazil’s deeper problem lies in the failures of its Leviathan state, which has perennially reached for the utopian visions embodied in Brasília but instead has produced recurring cycles of boom and dramatic bust.

Of course there a huge lessons to be learned from these two countries that apply to this country and the current political arguments now being made.  All, to some degree or another (with Socialist Sanders being the extreme) argue for both social democracy and bigger government.  We apparently don’t learn from other countries but insist on learning the hard way, by repeating what has already failed any number of times.

That’s because of arrogance and the belief that the only reason any of this hasn’t worked in the past is the right people weren’t in charge.

With the class of politicians we have running today, Hugo Chavez would be a better choice to run their ideas.

And we all know how well he did.

~McQ

If you think Bernie is expensive

Hillary Clinton admits not only to a tax increase but a 1 Trillion dollar tax increase.  To spend on the debt?  Well, no.  New spending! Freeloader spending!

If you know how government works, they’ll admit to $1 trillion in new taxes and claim its what they’ll spend, but my guess is the real spending will end up being 4 to 5 times that much.  And that in the land of $18 Trillion debt.  Check out this interview.  Whatever happened to “no new taxes”?

Daily News: So on taxes, that I did call for among other things, a surcharge on incomes over $5 million, 30% minimum, the Buffett rule, over a million…

Clinton: Over a million. Yeah, right.

Daily News: …and then to carried interests, a change in capital gains that would reward people for holding for six years or more, I believe it is. How much revenue do you foresee coming off that and what will be the impact on growth?

Clinton: Well, I have connected up my proposals for the kind of investments I want to make with the taxes that I think have to be raised. So on individual pieces of my agenda, I try to demonstrate clearly that I have a way for paying for paid family leave, for example, for debt-free tuition. So I would spend about $100 billion a year. And I think it’s affordable, and I think it’s a smart way to make investments, to go back to our economic discussion, that will contribute to growing the economy.

Now I’m well aware that this is a heavy lift. I understand that. But I think connecting what I’m asking for to the programs, to the outcomes and results that I’m calling for give me a stronger hand, and that’s how I’m going to go at it.

Daily News: So if I understand you correctly, if you look at your proposals for college costs and for family leave, for infrastructure investments…

Clinton: Well, that’s a little bit different, because infrastructure investment, I’m still looking at how we fund the National Infrastructure Bank. It may be repatriation. That’s one theory, or something else. It’s about $100 billion a year.

Daily News: A hundred billion a year, so that comes out to about a trillion dollars…

Clinton: Over ten.

Daily News: …over ten years.

Meanwhile, never mentioned, is what happens to an already hurting economy when government decides it can spend money better than those who earn it?  Well the same thing that happens in any planned economy.  People who earn the money quit doing so since it simply isn’t worth it.  When marginal rates rise to the point that if you spend your time earning more, most of it goes out in taxes, well then you put together a plan to maximize what you get to keep and you don’t commit to any extra earning that will be mostly taxes.

Does the government spending drop when the planned tax revenues drop?

Have you ever seen it do so?  Do you have any idea of how we’ve amassed the $18 trillion dollar debt we have?

So yeah, let’s elect this criminal crackpot and economic illiterate and finally pull the flush chain.  Let’s just let it all go down the drain.

What a political season we’re being subjected too.  And idiot on the right and two socialist crackpots on the left.

Meanwhile, the apparent hot topic is whether or not North Carolina has the right to have men use a men’s room and not the women’s room.

Freaking nuts!

~McQ

When leadership counts, Obama has failed on all levels

If Obama was where someone was pouring leadership into a glass for others to partake, he would have his glass turned over. He is the antithesis of a leader. He is, without a doubt, one of the worst leaders this country has ever suffered. And that’s not just my opinion.

James P. Cain, a former U.S. Ambassador to Denmark. He lost his son-in-law in the recent Brussels bombing. In a eulogy for his son-in-law he makes it clear what he thinks of the current US “leadership” in the face of a deadly and intractable enemy that much of the West and specifically the US, refuses to either recognize or confront.

Let’s be clear. This fight is not only against America and Europe, and it is not against Christianity. It is a fight against individualism, reason and independence of thought that began during the Enlightenment over 350 years ago in France, and found its greatest expression in the grand experiment launched by our Founding Fathers in Philadelphia.

This freedom is now under attack by the henchmen of the Dark Ages wherever they detect it—from Paris to Pakistan, San Bernardino to Istanbul, Nairobi to Brussels. Those who embrace this freedom, in what was once permissible to call the civilized world, are awakening to the battle lines that are forming. And like the battles that liberated Europe 70 years ago, the civilized world now demands coordination, willpower and leadership.

[snip]

More important, where is American leadership?

Even before the horrifying attacks in Brussels, I was hearing grave concern from many friends in Europe about America’s withdrawal from the global stage: Our leaving Iraq without putting adequate security measures in place; our rebuffing of traditional allies in the region; our passivity as hundreds of thousands of Syrians were slaughtered; our paralysis as Islamic State made a grotesque spectacle of beheading “infidels,” including Americans. Since the terrorist attacks in Paris and Brussels, the worried chorus from Europe has grown louder.

Of course the chorus has grown louder.  Europe has invested little in its own defense.  The US has always been there for them … until now.

It’s one thing to make the case that it is the job of Europe to begin to shoulder more of the burden of its own defense and then begin a well-thought out plan to which they’ve agreed to shift some of that burden.  That’s leadership.  Abandoning them is not leadership.  And Obama has, essentially, abandoned them by not leading.  He’s helped create the crisis, by lack of leadership, and he’s now exacerbating the problem by continuing his lack of leadership.

He simply isn’t nor has he ever been a leader.

And the world has suffered because of that.

While you may believe that the US needs to back down from the role of world policeman, that’s something a leader would do with a plan and gradually.

You don’t just quit doing it.

That is, unless you’re unqualified for the job you hold, have never held a leadership position previously and are not a particularly deep thinker when it comes to figuring out the consequences of your actions or lack thereof.

But then, I just described Barack Obama.

~McQ

An update of a couple of topics we’ve been following

First, the University of Missouri, where the SJWs, with the help of a professor who didn’t think much of the 1st Amendment and was fine with committing battery to deny it, is having a rough year.  Consequences from this bit of nonsense have really hit the bottom line:

Following a drop in students applying for housing, the University of Missouri will not be placing students in two dorms for the fall 2016 semester.

Mizzou will be closing the Respect and Excellence halls (ironic names, given the circumstances) in order to utilize dorm space “in the most efficient manner” to keep costs down.

In March, the university announced that it saw a sharp drop in admissions for the coming school year, and will have 1,500 fewer students. This will lead to a $32 million budget shortfall for the school, prompting the need to close the dorms in order to save money.

“Dear university community,” wrote interim chancellor Hank Foley in an email to the school back in March. “I am writing to you today to confirm that we project a very significant budget shortfall due to an unexpected sharp decline in first-year enrollments and student retention this coming fall. I wish I had better news.”

You see, those who are looking for a college have alternatives.  And when they see a college or university that they perceive, right or wrong, to be out of control, they are likely to take their business elsewhere.  Afterall, they’re paying the bill.  So, take note all you institutions of higher learning who tend to fold like a wet paper box when a few students protest, you too may end up closing a couple of dorms if it goes the way of Mizzou.  Fair warning.

Oh, and speaking of alternatives, New York government has decided to be “wonderful” with other people’s money and has hiked the minimum wage to $15 (over a time period).  That’s double the wage of today.  White Castle, an NY institution, isn’t taking that well since it will have a very heavy impact on their profitability (they make a 1 to 2% profit after expenses, including labor).  White Castle’s CEO says there are few alternatives.  If it was about price increases only, they’d have to increase their prices by 50%.  He’s pretty sure that’s a no-go because of competition for dining out dollars.  So, what’s he left with?

In the hyper-competitive restaurant industry, margins are slim — Richardson says that, in a typical year, White Castle hopes to achieve a net profit of between 1 and 2 percent — and if labor costs go up, many restaurants will turn toward labor-cost-cutting automation or business models that don’t require many employees. That means a lot of kids won’t get that first job. After decades of baggage check-in kiosks at airports, ATMs, and self-check-out lines at the supermarket, is it really so hard to imagine automation replacing the kid behind the counter at burger joints?

And what is lost to more young, inexperienced and thereby low-wage workers?

“We know that Millennials aren’t thinking they’ll stay at White Castle for 30 years,” Richardson says. “We view it as the start of the path. That’s true if you stay at White Castle or move on to something else. The skills you gain, you can take to the next role: learning how to apply for and get a job, learning how to show up, learning a work ethic, making a paycheck, and having fun.”

But this is about more than wages — White Castle has offered benefits and retirement programs for decades. It’s about the opportunity to work, to take the first step up the ladder of life, to get started.

“Out-of-work kids who don’t have an opportunity to work get in trouble. We want to offer kids jobs, offer kids work,” Richardson says. “There’s dignity in that.”

Somehow, though, the concept of starter jobs that pay low wages (and with the minimum wage, it’s usually more than they are worth) has become lost in all of this and we see government stepping in to make them “career” jobs for some idiotic and economically unsound reason. The result is predictable, although it will likely be hidden. You won’t see numbers because the numbers in question are those who are never hired because the wage floor is too high. And they’re going to be the “out-of-work” kids who don’t get that first chance to experience a job and what it takes to succeed.

Instead an alternative will do the work. A kiosk will greet the customer, takes his order and money and do so at a price point well below a $15 an hour worker. This isn’t rocket science and the math isn’t hard at all – $15 times 0 hours equals what?

~McQ