Democrats push for more unemployment benefits and a higher minimum wage is making it challenging for businesses to hire workers.
Despite it failing to pass in the Senate in 2021, a proposed 15 dollar an hour federal minimum wage is a vision some lawmakers in Washington still support. Private companies, like Chipotle, have voluntarily increased their minimum wage to 15 dollars, and passed the cost onto customers. However, Joel Griffith, with The Heritage Foundation, says social pressure is only one reason why some companies are raising wages. The federal government's 600 dollar a week unemployment benefit is another.
“Now you have a situation in which employers are competing with the federal government,” Griffith said. “The federal government paying people not to work, employers trying to pay people to work. I think most of us have noticed we are paying a lot more for goods and services.”
That's why Griffith’s not surprised to see some McDonald’s locations installing automated kiosks.
“We have an environment in which government is making it much more expensive to hire people. You end up making automation a lot more cost effective,” Griffith explained.