We are going to start to see more and more of this. I'm a Regional Manager for restaurants in LA. Starting July 1 minimum wage is $12. Its ramping up to $14 in the coming years. That's if they don't vote to hike it up even further!
Imagine being a Server who works for tips and gets paid $12 an hour plus tips. If the Minimum Wage keeps increasing I will stop managing and end up making more money!
Thats what people don't realize. As wages increase for lower skilled positions, people with higher skills start to think, " Hey, I can get paid the same if not more for a bartending job without the stress of my current job." It will push low skilled workers out of the workforce from both sides...Having to compete with higher skilled workers and being replaced with A.I.
It's happening now. Read the Zero Hedge article here:
