MINIMUM WAGE INCREASES MAKE RESTAURANTS MORE LIKELY TO FAIL
Every $1 increase in minimum wage makes mid-level restaurants 14 percent more likely to fail, Harvard economists say. Workers, business owners, consumers lose.
Rules that make it more expensive to employ workers will cause fewer workers to be employed. It’s a statement that’s as true in an economics textbook as it is in the real world—as more than a few places are currently discovering—and a new study from Harvard University economists takes a stab at explaining how that relationship can affect not only workers, but businesses and consumers as well.