A higher minimum wage means more money for low level workers… in theory. The trouble is that raising the minimum wage directly affects the ability of job creators to offer more workers more money. It looks great on paper but doesn’t work well in reality.

For example, we recently reported on a San Francisco book store that’s shutting its doors over a higher minimum wage.

Now, some are citing restaurant closings in Seattle as collateral damage resulting from the city’s new minimum wage hike going into effect next month.

Shift WA reported, hat tip to the great Jazz Shaw of Hot Air:

More Seattle restaurants close doors as $15 minimum wage approaches

Seattle’s $15 minimum wage law goes into effect on April 1, 2015. As that date approaches, restaurants across the city are making the financial decision to close shop. The Washington Policy Center writes that “closings have occurred across the city, from Grub in the upscale Queen Anne Hill neighborhood, to Little Uncle in gritty Pioneer Square, to the Boat Street Cafe on Western Avenue near the waterfront.”

Of course, restaurants close for a variety of reasons. But, according to Seattle Magazine, the “impending minimum wage hike to $15 per hour” is playing a “major factor.” That’s not surprising, considering “about 36% of restaurant earnings go to paying labor costs.” Seattle Magazine,

“Washington Restaurant Association’s Anthony Anton puts it this way: “It’s not a political problem; it’s a math problem.”

Here are some Twitter reactions to the story via Twitchy:


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