Dems minimum wage fiasco in DC

 National Review:

D.C.’s Tipped Minimum Wage Law Backfired Spectacularly. Now the District’s Democratic Mayor Wants It Repealed

Washington, D.C.’s experiment with increasing the minimum wage for tipped workers proved so disastrous for the city’s restaurant industry and workers alike that Democratic Mayor Muriel Bowser is seeking its repeal.

Earlier this month, Bowser called for repealing D.C.’s Initiative 82 as part of her fiscal year 2026 budget request. Initiative 82 is a D.C. ballot measured passed in November 2022 that replaced the district’s tipped minimum wage of $5.35 with the minimum wage for non-tipped employees.

“DC restaurants are facing a perfect storm — from increased operating and supply costs to higher rents and unique labor challenges,” Bowser said in a statement. “DC must rebalance our system to ensure local restaurants can survive, compete, and employ DC residents.”
...

 “There’s no way for restauranteurs to absorb the higher costs other than passing them on to customers. And that’s always just basic economics 101,” said Sean Higgins, an economist at the free-market Competitive Enterprise Institute.

“Most of these restaurants operate on very thin margins. A lot of them are always teetering around closure even at the best of times. Forcing them to pay their workers more is just a problem for them,” he added.

... 

Setting an unrealistic minimum wage can be a disaster for companies with tight profit margins, like a restaurant.   Bowser is right.  The $15 minimum wage was unsustainable in the restaurant business.

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