Monday, May 22, 2017

"But- but Social and Financial Justice!"

For some empirical backup, consider an April study from Michael Luca at Harvard Business School and Dara Lee Luca at Mathematica Policy Research. They used Bay Area data from the review website Yelp to estimate that a $1 minimum-wage hike leads to a 14% increase in “the likelihood of exit for a 3.5-star restaurant.”

Put differently, San Francisco’s minimum wage experiment may be dangerous for your favorite white-tablecloth restaurant—the kind of place where the food is exquisite and can command a premium—but it’s downright deadly for your local white-apron diner.
Which they were warned about.  But they either didn't believe it or didn't care, because feelz.

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