High wages for the restaurant employees will lead to a decrease in their demand. High wage will result in less demand of the restaurant workers. The restaurant will avoid employing many restaurant workers so as not to force them to forgo paying for other services that are more valuable t them. If initiative 77 is passed, there will be an increase in unemployment. This is because the restaurant owners will try as much as possible to reduces there a number of their workers to avoid extra expenses from the pay increase.
Certain workers also fear that an increase in their base wage could affect how much customers opt to tip them or the proportion of their tips that restaurants and bars let them keep ("D.C. Councilmembers Planning Bill To Repeal Initiative 77," n.d.). Some of the employees opposing wages increase are not valid concerns. This is because the new initiative is in favor of the restaurant employees. A rational employee will not object such an initiative. Some of the employees might have been bribed by the restaurant owners and association to oppose the initiative. The new initiative will ensure that the restaurant works have a better pay which will improve their living standard and all the employees should support the initiative.
The business will not move away from the model that relies less on good services. This is because adopting a new model will be expensive for the restaurant. The restaurants will have to make profits as usual even if the new initiative is passed. Although there will be some changes that will be made, any change that will result in the reduction in the profitability of the business will be ignored.
Works Cited
"D.C. Councilmembers Planning Bill To Repeal Initiative 77." dcist.com/2018/07/initiative_77_1.php.
