Pizza Hut vs. Welfare State
“Calif. fast-food chains slash workers as $20-an-hour minimum wage looms” (New York Post):
Michael Ojeda, a Pizza Hut driver for eight years in Ontario, Calif., received one of the notes from Pizza Hut franchisee Southern California Pizza in December telling him that his last day of work would be in February.
Southern California Pizza — which operates 224 Pizza Huts in the greater Los Angeles area — offered $400 in severance if Ojeda stayed through February, according to The Journal.
But Ojeda, who told the outlet that he made hundreds of dollars a week in wages and tips as a delivery driver, decided to claim unemployment instead.
“Pizza Hut was my career for nearly a decade and with little to no notice it was taken away,” said 29-year-old Ojeda, who was supporting his mother and partner on his Pizza Hut delivery wages.
Even if you don’t depend on Pizza Hut to maintain your BMI, there is much of interest in the above. The restaurant was out-competed for Mr. Ojeda’s time and effort by the Welfare State. Also, in the Department of American Family Disintegration, Mr. Ojeda is not supporting an intact mom and dad, but he’s instead supporting his mom and a sex partner who isn’t his biological father. (Though maybe it is instead a 2SLGBTQQIA+ love story? The “partner” could be Mr. Ojeda’s same-gender partner and not the mom’s partner.)
The article reminds us of the importance of connections in a planned economy:
Panera Bread, however, was ruled exempt from the $20-an-hour minimum wage hike by Gov. Gavin Newsom after the billionaire owner of several of the chain’s locations donated to his campaign, according to a report.
Related:
- Fast-food economics in Massachusetts: Higher minimum wage leads to a shorter work week, not fewer people on welfare (maybe this boost to California minimum wage will also lead to fewer hours worked; California has similar means-tested housing, health care, etc. to what Maskachusetts offers)
- Donutnomics during the Coronaplague