The BBC reports that the government will ban employers from counting tips as part of the minimum wage. This “will benefit those working in industries such as restaurants.”
That the news source can assert something that has been demonstrated as false for hundreds of years just boggles the mind. What the law will do is raise the price of employment: the law of demand states that few work hours will be purchased at a high price verses a lower price as else equal. Also, if more resources are pumped into labor, they must come from somewhere, and that means less investment in expansion, possibly higher prices for consumers, and less to suppliers of other goods and services. In other words, labor won’t benefit, and, if it does, it will come at the expense of something else.
Labor unions, which pushed for the law, are happy, and why? All the better to further cartelize the workforce and exclude non-union members.
