Wednesday, December 27, 2023

$20 x 0 = 0

 $20 an hour for minimum wage is nice for minimum wage workers - if they have an actual job.  Business Insider reported Pizza Hut is laying off over 1,200 delivery drivers in California: 

Two Pizza Hut operators in California are eliminating their in-house delivery services at hundreds of stores, resulting in more than 1,200 driver layoffs, according to federal-employment notices reviewed by Business Insider.

The layoffs, effective throughout February, affect Pizza Hut delivery drivers across California, including at Sacramento, Palm Springs, and Los Angeles locations. The Pizza Hut franchisees are reducing staff as fast-food chains in the state brace for a new law that increases worker pay to $20 an hour in April.

"PacPizza, LLC, operating as Pizza Hut, has made a business decision to eliminate first-party delivery services and, as a result, the elimination of all delivery driver positions," a federal WARN Act notice filed by the fast-food operator with the state's Employment Development Department said. Rest of article.

In other words $20 x 0 = 0.  


Anonymous said...

Yes let’s blame the workers instead of the fact that so many fewer people can afford to buy Pizza Hut anymore!

Anyone know what a $70k a year salary in the 1980s is now worth when adjusted for inflation?
It’s $350,000!

$20 an hour is the new $10 an hour.

Anonymous said...

Doordash, and Uber Eats (to a certain extent) has taken over the food delivery business.

And, in CA where gas is easily 4.50 a gallon, $20 an hour still is very low...

Anonymous said...


Using the middle of the road date of 1985 70,000 in 1985 is the equivalent to 197,300.94 in 2023

you are about 150 grand off

Anonymous said...

No one blamed the workers. The economics don't work for the company. They made a choice. The issue is with mandatory minimum wage laws. It's coming to a junk food restaurant near you. I avoid fast food as much as possible, but even I have noticed that many places now have kiosks so that no employee is required to take a customer's order.

Anonymous said...

Do people even realize what the cost of living, real estate, and gas is in California? $20 an hour is NOTHING.

It's like a fast food worker in Mississippi making $9 or $10 an hour.


It's not sustainable for prices and the cost of living to keep going higher and higher each year while wages remain stagnant.

Anonymous said...

The numbskull proponents of huge minimum wage increase will always cite the fact that it's impossible to make a living wage or raise a family on a minimum wage job. True if you intend to raise a family as a pizza delivery man or a burger cook. What they are actually doing is eliminating an entire class of employment (part-time and entry level) which millions have used to supplement their incomes and which give teens and students a shot at the job market. California will lead us into oblivion if we're stupid enough to follow.

Anonymous said...

The answer is simple. These companies will move 'offshore', and you can order your pizza from Mexico, The Philippines, China or Vietnam. Delivery will take a while, but that's the reality of the magic term 'supply chain'.

And this is exactly the reason we no longer make toothpicks, ball point pens, couches and T-shirts in the United States.

Mandatory wage rates, volumes of government regulations and hundreds of bureaucratic departments having oversight have driven millions of jobs out of this country and those jobs will never return.

Anonymous said...

@2:20 -- And? Your point?

Pizza Hut drivers, and other minimum wage workers didn't approximate $10/hour in 1980. It was $3.10. By 1990 it had risen to $3.80.

So your $10/hour comparison was meant to explain what exactly?

Anonymous said...

This is what happens with pushing minimum wage increases. You cannot force the hand that feeds you. That hand has the power to stop feeding you altogether.

Anonymous said...

Frozen pizzas from Walmart are about $3 each and just as good as Pizza Hut.

Anonymous said...

Guess I'm going to be using local Pizza Hut instead.

Anonymous said...

I over simplified but compare Purchasing Power and inflation and the numbers are accurate.
Keep in mind that a brand new 1985 Corolla was advertised with an MSRP of $4999 which is about $14,000 in 2023.
You can’t buy a brand new base model Corolla for less than $20,000 in 2023.

Anonymous said...

$10 used to be considered a “living wage” but now it is $20.

But ultimately this is just two franchises and they will suffer because the alternative delivery services suck and are suffering too.

Anonymous said...

You are way off. What will happen is these franchises will be allocated 8000 brand new H1B visas which will become commodities in India, The Philippines, Mexico, etc. Immigrants will mortgage everything they have to pay a broker for the opportunity to come to the USA and deliver pizzas for $5 an hour and they will immediately begin producing offspring that will qualify for the incredible benefits afforded the poor in the USA.

This is late-stage capitalism in full glory. That is, the capitalists squeeze the lower class while the government subsidizes the franchise owners.

Anonymous said...

@2:20 using the BLS inflation calculator, selecting january 1980 and nov 2023, its 276k, not 350k.

Anonymous said...

These two franchisers still employ several thousand folks and these jobs aren’t lost, Grubhub, Ubereats etc will deliver their Pizzas.

Anonymous said...

Looks like Atlas just shrugged in Cali.

Anonymous said...

I was bagging groceries in high school when minimum wage started being required for us. I took a financial hit since I was making a lot more with tips until peoples found out we would get minimum wage,same as the adults working at the factory.Folks that want to hustle and give good service don’t need a guarantee.What really pisses me off is that they started taking out Social Security that same year and now 60 years later Im still hustling and they are making me pay SS-even docked me a few years ago because I made too much.The nanny state is the enemy of free enterprise.

Anonymous said...

If you can only get a minimum wage job you have no business having a family. Those minimum wage jobs are for those college graduates that have a degree in basket weaving or music appreciation.

Bill Dees said...

@3:59 PM You can't buy a 1985 Corolla equivalent today. Base Corollas today come with standard equipment that was found only on Mercedes and BMWs in 1985.

Bill Dees said...

Rarely have I seen so many whiners on a post. Reagan destroyed the Middle Class with his VooDoo economics, which made rich men richer at the expense of wage earners. When I was growing up in Mississippi a single wage earner family with a stay at home spouse had a very good life. Rapacious capitalism ruined that, and we have Ronald Reagan to blame.

Anonymous said...


I am sure it also has NOTHING to do with exorbidant taxes, inflation, the availability of living wage potential jobs, government waste, government regulation, on and on....

just lay it all on a president who last sat in the Oval Office four decades ago.......

Anonymous said...

Working at a fast food restaurant is not supposed to be a lifelong career choice, unless you get into management. Those jobs are part time, summer or after school jobs. Raising the minimum wage leads to price increases in order to cover the costs of the the new minimum wage. The cycle continues and that $20 an hour job is soon the equivalent to $10 an hour.
Attend a local community college and learn a trade while working at the local fast food restaurant. With government grants you can attend basically for free. After graduation get a job that pays much better and begin building your own life.

Anonymous said...

Tired of the crowds, shitty food, wait times and prices.

I'll just fire up the stove or the grill and make do.

Anonymous said...

December 27, 2023 at 2:44 PM
Fast food workers in Mississippi make 15-20 an hour now. I think they're over paid.

Anonymous said...

@Bill Dees

The base price of a Corolla was $15,000 in 2017 when Trump was president. The features haven’t changed that much. What happened was the several trillion dollars printed and the global population robbed of their future during the scamdemic.

Anonymous said...

The minimum wage in 1965 was $1.25/hour. Using a CPI inflation calculator, that is the equivalent of $12.57/hour in 2024, significantly less than $18/hour.

These minimum wage increases also increase inflation in addition to layoffs.

It's a fool's (progressive's) errand. But progressives want our country to fail. That is their goal, orchestrated by George Soros, a commie flunkie.

Anonymous said...

FYI y’all the Toyota Corolla has been assembled in Blue Springs, Mississippi for about 10 years now.

Anonymous said...


2017 Toyota Corolla Price

2017 Toyota Corolla base price started at $18,500 to $22,680. Invoice price went from $17,484 to $21,000.

Anonymous said...

@6:06 PM

Maybe kingfish won’t censor this one if I use the same yellow cuck newspeak he uses.
Why should anyone take out a student loan to attend the local community college to learn a trade when proud New American Immigrants will get the trade job without requiring any student loans?

FYI if you didn’t know, the new federal GSA contracts allow refugees to work trade jobs with easily forged foreign certifications

Anonymous said...

5:08 Wishing you a pain free fall from your ivory tower

Anonymous said...

If Ronald Reagan caused today's problems, then we have Genghis Khan to blame for the issues in the Middle East. Geez. Get a life, Bill Dees. Reagan is unquestionably the greatest President of our generation, responsible for ending the inflation and high interest rates of the 70s as well as orchestrating the collapse of Communism in Eastern Europe and the Soviet Union. I would rate Bill Clinton as next best but Clinton had a much more vibrant economy to seize on in the 90s Now go back to sleep.

Anonymous said...

The term 'living wage' is equally as meaningless as 'fair share'.

A mythical living wage, never defined, is somewhere around 175% of what a 'typical' High School dropout is making. And as soon as the government raises his wage to that point, then his living wage escalates another 50%.

So, if a burger flipper is making $13 an hour, progressives claim a living wage for her is $22.75 per hour. And when the government raises minimum wage to $22.75 per hour, magically a 'living wage' becomes just shy of $34 an hour. Just ask any democrat policy maker.

A 'living wage', since it's on wheels, is never achieved and the higher wage earners will never reach a point of paying their 'fair share' of taxes. Just ask any liberal or government department head.

T. Leary said...

"Frozen pizzas from Walmart are about $3 each and just as good as Pizza Hut."

But, it's always cool for the tokers to open the front door and receive a hot square-box, take it to the kitchen table, light a candle, open the square box and contemplate a round meal cut into triangles. Ooohhmmm.

shadyal said...

People who have never run a business dictating how a business should be run.
Yeah, that works.

Anonymous said...

Marxists here think government dicta should set levels of compensation. Freedom means letting the market decide. Personally, I think prepaid tips should be enough, then someone wants a pizza bad enough, they bid up the cost of delivery. Or go get their own.

Anonymous said...

Late-stage empire with a Babylonian debt-based monetary system where all "money" is created as debt. If it is in fact true that 60% of all the "money" in circulation has been created since 2020, then you aint seen nothing yet! $100 per hour won't be a "living wage" by the end of 2024.

Anonymous said...

Many of the unions have their wages set to increase every time minimum wage increases. They can raise the minimum wage all they want but the buying power will stay the same. Businesses that hire minimum wage workers will just raise their prices to pay for the increase. Nothing gained by raising minimum wage. Just another way to say inflation.

Anonymous said...

So many great solutions and insightful analysis.

Did I hear someone lament the loss of toothpick and the manufacturing of point pens, couches, and r-shirts!! That was funny.

Fear not - those industries have been replaced with other’s needing unskilled labor such are making tires, or auto assembly line work, or managing stock in an Amazon warehouse. Now granted, we have to pay them to come work in Mississippi, but Tater’s got that under control.

You sound smart, like the folks that can’t look up a wage escalation calculator or find the retail price of an old car. H1B visa’s don’t work that way. It’s not even applicable to this sort of work, and you have to make a law via Congress if you want to allocate any of the limited number of H1B’s for a given year. It was laborious when I pursued an H1B visa for a foreign PhD student who had expertise in dynamic thermal-hydraulic anayses of accidents in nuclear reactor systems. My company had to defend why I couldn’t find the expertise I needed in an American citizen. So good work trying to rile everyone up, but it’s just more bullshit.

Anonymous said...

My sons already bitching about Chic Fil A being $15 for a lunch meal. If minimum went to $20 here it would be $20 for lunch. These are entry level jobs so it teaches younger people to show up on time, do a job and be respectful. Just notice how many high school kids don't work and then they get out in the world and don't know how to cope with things. Me, I'll hire a good country girl that started work somewhere at 14 and needs a job. My last hire was paid $42,000 to start and I have one making $105,000 plus benefits.

Anonymous said...

I want to applaud Bill Dees, every time I think he can't possibly say anything more ridiculous, he proves me wrong.

Anonymous said...

December 28, 2023 at 10:38 AM, there are some that won't believe your post. Save it for next year, at this time, so you can say you tried to tell them. 2024 is shaping up to be something else.

Anonymous said...

As a country girl that also worked at 14, and a now business owner I couldn't agree more 11:17.

Recent hires and candidate pools dont seem to offer that option, and instead include so many that simply don't show up with regularity and seem offended that such is expected.

Anonymous said...

@2:20...a $70,000 income in 1985 equates to $199,754 today, not the $350,000 you claim.

Built the narrative, facts are a pesky nuisance.

Anonymous said...

When you can get $30k from the gubmint and sit on your ass all day eating Cheetos and watching Netflix, even $20/hour doesn’t look too good.

Jimmy said...

But who wants to pay 42.00 for a pizza?

Jimmy Taylor

Anonymous said...

10:55 - any union that sets automatic raises in concert with minimum wage increase has gone out of business. Do you have even a clue when the last time the gubment raised the minimum wage was?

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