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You probably remember Subway's famous "five-dollar footlong" promotion as much for the obnoxiously catchy jingle as for the sandwiches themselves. (Sorry for getting that stuck in your head all day.)
The sandwich chain recently resurrected the promotion in a national advertising campaign promising foot-long subs for just $4.99—but the special deal won't fly at one Subway restaurant in Seattle, where owner David Jones posted a sign this week giving customers the bad news.
Sadly, the consequences of high minimum wages, excessive taxation, and mandate-happy public policy are not limited to the death of cheap sandwiches. The cost of doing business in Seattle is higher than the Space Needle, and the unintended consequences of those policies are piling up too.
The biggest cost driver, as Jones' sign mentions, is Seattle's highest-in-the-nation minimum wage. It went from $9.47 to $11 per hour in 2015, then to $13 per hour in 2016, with a further increase to $15 per hour planned.
The result? According to researchers at the University of Washington's School of Public Policy and Governance, the number of hours worked in low-wage jobs has declined by around 9 percent since the start of 2016 "while hourly wages in such jobs increased by around 3 percent." The net outcome: In 2016, the "higher" minimum wage actually lowered low-wage workers' earnings by an average of $125 a month.
And now those same employees will have to pay more for sandwiches from Subway—and everything else too.
(Score: 3, Informative) by seeprime on Saturday January 13 2018, @07:21AM (1 child)
I doubt the plan was to hurt people. That's just the unintended consequences of forcing higher wages upon workers in jobs that were never intended to be careers.
Get a real account. Posting political opinions as anon makes you a troll.
(Score: 5, Interesting) by anubi on Saturday January 13 2018, @09:43AM
I think it may well be the Government/Banking using their power to stoke inflation... so as to try to keep spending curves "looking good" numerically. With more wages, landlords can hike rents, and get it instead of getting a moveout-to-their-car. More people will no longer qualify for government subsidies, even though everything now costs more.
Every businessman would love to hike prices, but the economy has been moderating the price hikes, as most people simply would not buy if saw the thing had been hiked. I know in my case, a coupon often makes the decision of where I am going to eat... a twofer burger is a good incentive. I quit going to both Burger King and Subway several years ago, discouraged by pricing.
Business and Government plan on inflation, and depend on the Government and Banking sector to keep liquidating the economy by flooding it with money injections, usually in the form of loans or pay hikes, but the gravy train is running out.
I cite the "Federal Reserve Interest Rate Chart" for my speculation of how they are nipping at anything they can get to place money in the hands of people who will spend it in a store. Trouble is they can't drop interest rates much lower for another wave of spending sprees by people spending borrowed money. Last year's Christmasses are still due and payable, every month... for years to come.
We are still trying to push those HARP loans to persuade people with underwater loans on houses to continue to pay the banks. Can't have the rich people eating the loss, you know, just a shake of the Hand of a Congressman will divert public monies to the banks to make sure that loan stays put, and the interest continues to be paid.
To me, its like crossing a wide expanse, and watching the fuel gauge. While the Congressmen and Bankers just want me to mash down on the accelerator, and constantly point to the speedometer telling everyone just how rosy everything is. That gauge marked "Debt" scares the hell out of me. I have seen what happens when other people did not pay attention to it. The debt-holder came in and took their stuff, while the Sheriff watched. And I have a whole riverbed of people nearby that this exact same thing happened to. They were playing around with their damned pills and toys while other people were lawyering up to go after their stuff.
They had a "good time", got to smile and pay for stuff they could not afford - "with card!", and paid for it, dearly.
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]