If Minimum Wage Goes Up, Prices Will Rise and Everything Will Fall Apart - Los Angeles - 1

These days, when I go out to eat in LA, I find myself checking the bill again.

"Did I really order this much?" But when I look closely, it's not much at all.

I order one dish and have one drink, and with the tip added, it ends up costing what two people used to pay.

In the past, I could go out with about $10 and easily cover a simple lunch.

Now, finding a $10 lunch in LA is a challenge; you need to spend over $15 to get a meal.

As a result, when I meet people who run restaurants or shops, there's a common refrain.

"If employee wages go up again, how are people like us supposed to do business?"

Seeing food prices rise firsthand makes it hard to dismiss that statement.

Of course, it doesn't make sense to blame all of LA's high costs solely on minimum wage.

Food prices have gone up, and so have rents. Utility bills for electricity, gas, and insurance are also significant.

Every cost a business owner has to pay is rising, and labor costs are a big part of that.

Restaurants need staff in the kitchen, to take orders, to handle payments, to clear tables, and to clean. It's not a business that can run with just one or two employees.

If the hourly wage goes up by $1, it might seem like a small amount at first, but if you consider ten employees working eight hours a day, it changes the picture.

And it's not just a one-time payment; it's a daily and monthly expense. Plus, there are additional costs related to payroll that the business owner has to cover.

This leaves the owner with few options.

They can raise food prices, reduce staff, cut operating hours, or invest in machines.

These days, if you walk into a fast-food restaurant, you'll see several large kiosks. Customers place their orders and pay on their own, while employees just serve the food.

At first, I thought, "Wow, life has become easier," but upon reflection, it's clear that these kiosks weren't installed solely for convenience.

Yet, you can't just tell employees, "Live on a low wage."

Anyone who has lived in LA knows that rent is no joke.

After paying for car insurance, gas, and utilities, it's hard to see where the paycheck goes.

Living costs keep rising, but expecting wages to stay the same is unrealistic.

So, the discussion about minimum wage isn't simply about who is right or wrong.

From the employee's perspective, it's valid to say, "With rent going up like this, how can I survive on this pay?"

From the store owner's perspective, it's also valid to say, "If sales stay the same but employee wages keep rising, how am I supposed to make a living?"

From the customer's perspective, it's different too. "Wages went up a little, but now hamburgers, coffee, and even haircuts have gone up too. What's left for me?"

It's strange how none of them are wrong.

It's a cycle where money moves around among the same pockets. That's why things feel a bit off in LA these days.

When looking at hourly wages alone, they have definitely increased compared to the past.

However, when I talk to people, there are more who say, "Life has become harder" than those who say, "It's manageable now."

The same goes for business owners. While sales figures are higher than before, when they do the year-end calculations, they find there's not much profit left.

If the rate of increase in wages, rent, ingredient costs, and insurance is faster than sales growth, even successful businesses struggle.

"Wages have gone up a lot, but why is it that everyone says life is harder?"

I also find it really hard to draw a clear conclusion....

However, this is likely a thought that both employees and employers in LA have pondered at least once.