Sunday, February 11, 2007

On precisely anticipated consequences

Surprise, surprise. Young teenage workers are losing their jobs because of an Arizona minimum wage hike.

But, what's with this guy?

Tom Kelly, owner of Mary Coyle Ol' Fashion Ice Cream Parlor in Phoenix, voted for the minimum-wage increase. But he said, "The new law has impacted us quite a bit."

It added about $2,000 per month in expenses. The store, which employs mostly teen workers, has cut back on hours and has not replaced a couple of workers who quit.
What a shock! I'm sure Tom had no idea that passing a law forcing his and other businesses to pay a certain wage would negatively impact their ability to operate.

2 comments:

Crampton said...

Perhaps he already had higher labour costs than his competitors and wished to hurt them more than he would himself be hurt by the increase? We see this sort of nonsense in regulatory policy all the time.

David MacLean said...

Ah, I see. Strategic self-immolation!

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