I happen to think the left’s real silent goal with higher urban-specific minimum wages is to drive NAMs out of cities, because NAMs tend to low wage jobs whose wages are less than the proposed or implemented urban minimum wages.
A better way of saying that is that if the urban minimum wage is higher than the wage equilibrium for fast feeders, then the fast feeders can’t operate in the urban area. If the fast feeders aren’t there, the NAMs that work there and the NAMs that eat there suddenly don’t think the urban area is such a dope place to beez, fo’ real, mo shizzle. So they leave the cities, using their Affirmatively Furthering Fair Housing Section 8 voucher, plant themselves in a suburban apartment complex close to their 365BellCurve salt licks. They’re lovin’ it.
Local minimum wage hikes cause restaurants to leave or shut down and deter new ones from entering, according to a new Harvard Business School study of the San Francisco Bay Area restaurant industry that contradicts the orthodox liberal view that steeply raising the cost of unskilled labor will not affect jobs or hiring.
More interesting, though, are the study’s findings about which restaurants are forced to leave by the higher wage floors. The authors compared rates of departure of restaurants across different Yelp ratings, and found that the policy hit low and mid-quality restaurants much harder than top-tier restaurants. “Our point estimates suggest that a $1 increase in the minimum wage leads to an approximate 14 percent increase in the likelihood of exit for the median 3.5-star restaurant but the impact falls to zero for five-star restaurants.”
Not quite total vindication, but close enough for government work.
The only difference is that AI author thinks that this is an accident and thinks that min-wage advocates would think it a bug, while I think it is deliberate and by design, that the policy architects both knew this and wanted this, and they think it a feature.