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$15 Minimum Wage Damages NYC Restaurant Scene

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The $15 minimum wage policy is giving New York City a major dose of economic reality.

New York City restaurants are eliminating jobs, reducing employee hours, and raising prices due to the higher costs of the $15-per-hour minimum wage.

The New York City Hospitality Alliance, a business association that represents restaurants in the city, claims that the restaurant industry in NYC is on the decline.

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According to Andrew Rigie, the executive director of the trade association, “full-service restaurants recorded a 1.6 percent job loss, which is the first recorded annual loss in two decades.”

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The New York City Hospitality Alliance’s revealed that approximately a third of respondents will reduce jobs and raise prices this year due to the $15 minimum wage that the New York state government enacted.

The survey found that 76.5 percent of full-service restaurants which responded ended up reducing employee hours, and 36 percent got rid of jobs.

Additionally, 75 percent of limited-service restaurants stated that they plan on reducing employee hours, and 53 percent will eliminate employment opportunities in 2019 due to the government-imposed wage policy.

New York’s governing class still believes the $15 minimum wage is the way to go.

Governor Andrew Cuomo, through a spokeswoman, defended New York’s minimum wage law:

All New Yorkers deserve to make a living wage and under the governor’s leadership, more minimum-wage workers than ever before have received an increase in their wages. The fact is that increasing the minimum wage puts more money in the pockets of hardworking New Yorkers, which creates more demand for local businesses and increases economic activity.

The Hospitality Alliance concluded that, “The results of this survey, and other industry trends, signal that a once-growing industry responsible for hundreds of thousands of jobs and billions of dollars in economic impact has become stagnant.”

New York’s economic policies have garnered significant criticism from various free market economists during the past few years.

Not only has the state of New York adopted a similar income tax scheme to the federal government, but it has also doubled down with regulations, spending, and other questionable policies like a $15 minimum wage.

William P. Ruger and Jason Sorens’s Freedom in the 50 States rankings provide an unflattering image of New York’s fiscal policies:

New York’s local tax burden is twice that of the average state: 8.5 percent of income in FY 2015. This is a dramatic rise from the early 2000s when it was 7 percent.

The state’s tax burden totals “a projected 6.8 percent of income in FY 2017”. Additionally, New York’s debt is the highest in the country standing at 31.2 percent of income. Given these factors, New York finds itself ranking last in fiscal freedom according to this report.

On top of that, New York falls in last place for overall regulatory policy rankings. When adding New York’s $15 minimum wage into the mix, the state has an explosive cocktail of government intrusion in the economy.

As a result, citizens are voting with their feet. In the same report, it was noted that in “the calendar year 2015–16 alone, 166,000 more people moved from New York to another state than moved in.”

 

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U.S. Law Enforcement Bust 27 People Connected to Mexican Sinaloa Cartel

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Over two dozen people were arrested on drug charges in connection to a Mexican cartel smuggling cocaine into the U.S. Following a two-year investigation, 27 people were arrested through Operation Tripwire, an investigation effort U.S. officials have been working on featuring members of the Sinaloa Cartel.

The trafficking network went from Los Angeles, California to Tucson, Arizona and Pittsburgh, Pennsylvania where cocaine originating from Mexico was smuggled stateside. The United States Attorney for the Western District of Pennsylvania, Scott Brady declared “this is a large organization that was trafficking hundreds of kilograms of cocaine throughout the country and has direct ties to the Sinaloa cartel in Mexico.”

U.S. authorities recounted that the investigations started after an agent in Pittsburgh was able to identify an address that received large quantities of suspicious-looking packages coming from California. Since then, agents started to do investigation on other members of the network across the U.S.

Across the span of seven months, authorities were able to intercept U.S. calls made by some of the alleged traffickers with Sinaloa carte leaders in Mexico. On September 9, 2020, 27 were arrested in Arizona, California, and Pennsylvania.

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According to American authorities, $1.3 million in cash and over 140 kilograms of cocaine were seized. The aforementioned people arrested are now facing a prison sentence of between 10 years and life in prison.

The border situation is no joke. Prior administrations have largely neglected the issue and have allowed for unprecedented levels of illegal immigration and drug trafficking to cross the U.S. border.

In a prior instance, BLP reported on how Mexico is a failed state that cannot maintain public order and is largely being pushed around by cartels. Due to its proximity to the U.S., Mexico’s problems will likely spillover stateside.

This is why border security is crucial. Thankfully, the U.S. has a president in Donald Trump that gets the memo. He’ll still need help from Congress, however,

That’s why it’s crucial that America First Republicans have strong showings at all branches of government in 2020.

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