Minimum Wage Hike Kills $5 Footlongs at Subway

Minimum Wage Hike Kills $5 Footlongs at Subway

Liberals are always arguing that “little” hikes in the minimum wage have no negative impact on the economy, jobs, prices, or anything. According to the left, raising the minimum wage does nothing but empower people and spur growth in the economy. As with most things, the left happens to be wrong.

In San Francisco, where Save Jersey’s own Ed Sheppard had to survive as a conservative for so many years before coming to our coast, the minimum wage was just increased, just as the Democrats are trying to do here.

As a direct result of the hike, Subway, the second best chain establishment to make hoagies (everyone know’s Wawa is better) has decided to cease its well known and painfully catchy “$5 Footlong” campaign in the entire county. With this hike, the cost of doing business has reached a threshold where the relatively good deal no longer makes sense to business owners. Subway employees should breathe a sigh of relief, because if management did not cut the promotion, they would have had to cut something else to make up costs, and it likely would have been from the ‘wages’ column in their books.

This small empirical example just demonstrates the fallacy of the liberal position on this issue. Minimum wage laws will put more money in peoples pockets, sure. Whether their specific job is valued at the level they must be paid required by law is another issue entirely, but by definition, if people must be paid more, they will have a bit more cash to spend. But the problem is that when costs go up, that gets passed on to the customers to make up the difference. People making minimum wage are also customers.

So now, because the minimum wage went up just a bit, people up and down the income scale are paying more for the same sandwich they could have purchased last week for less. Some may stop buying Subway entirely and move on to a less satisfying, cheaper alternative. If they could afford it before, and now they cannot, their standard of living (if defined as being able to buy what they want within the bounds of what they could previously afford) was actually just decreased because of a hike in the minimum wage. Using a sandwich as an example may seem a bit inconsequential, but this model can essentially be adapted to any product or service, not just footlong hoagies.

When the costs of doing business go up, the costs of patronizing business also goes up. Don’t let anyone tell you different.

6 thoughts on “Minimum Wage Hike Kills $5 Footlongs at Subway

  1. Say it isn't so. I went to subway today in Saddle Brook, NJ and got a footlong for $5 plus sales tax. There are tons of Subways in Bergen County, I'll keep an eye on the prices.


  2. Cat food on a hoagie;s not so bad just grandma & grandpa been doing it ever since property taxes topped $7,487 .

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