A Minnesota restaurant has added a $0.35 surcharge to all tickets to offset Minnesota’s recently increased minimum wage.
Yes – actions have consequences. This is perhaps the minimum of consequences for increasing the minimum wage. Who benefits? Who suffers? Is there a net positive or negative? And perhaps most importantly: do the people who legislate ask themselves any of these questions? Do they look at the consequences? Do they compare what actually happens to what they speculated might happen?
The world is complicated and yet legislators are ever zealous to push buttons and pull levers, the implications of which are usually unknown either ex ante or ex post. And yet they continue to do it.