Economic reality: no free lunch...or sodas either

Tuesday, March 7, 2017
 | 
Chris Woodward (OneNewsNow.com)

unemployment jobsFor every action there is an equal and opposite reaction, and recent announcements in the business world serve to further prove the idiom.

Pepsi recently announced a decision to lay off 80 to 100 employees, citing Philadelphia's tax on sugary beverages.

The tax is meant to help fund programs such as pre-kindergarten, but published reports say the tax has also caused a drop in beverage sales.

Meanwhile, fast food chain Wendy's is installing self-order kiosks at 1,000 locations, a move the Associated Press says is meant to appeal to younger customers and reduce labor costs.

While Wendy's tells OneNewsNow that it's not eliminating the option to place your order at the counter, critics of minimum wage increases have warned that employers will turn to automation.

credit card swipeIf you ask Michelle Minton at the Competitive Enterprise Institute, everybody wants to see the most people possible with high-income jobs, but something else needs to be considered.

"It's just a fact of reality that if you force a company to pay a larger amount, whether it's in health care, benefits, or income, they're going to have to cut costs somewhere,” she says.

Observers indicate that when someone speaks out against the tax, they're accused of being opposed to pre-K and higher wages. Others are labeled as shills for industry.

"Philadelphia has a lot of corruption," Minton adds. "There's a lot of waste. There are a lot of places where if they wanted to do this pre-K program…there were plenty of places they could have found the money, besides costing low-income families a lot more money to buy soda."

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