How Higher Fast-Food Wages Could Hurt Fast-Food Jobs–and Hike the Cost of Your Food

Leave a Comment

In Heritage Work

The union-led push for a $15 wage at fast-food restaurants would reduce sales and profits at fast food restaurants, cost jobs, and drive up the cost of fast food meals, Heritage Foundation economist James Sherk reports.

Some workers would come out ahead from a $15 fast-food wage: those with the most experience and the highest efficiency. Sadly, marginal workers–including those with the worst alternatives and the fewest marketable skills–would be left behind,” Heritage’s Salim furth points out.

Minimum Wage Hike Would Hurt Fast-Food Restaurants

Without major operational changes, fast-food restaurants would have to raise prices by 38 percent while seeing their profits fall by 77 percent,” Sherk explains. “This would cause many restaurants to close and many others to make extensive use of labor-saving technology—eliminating many of the entry-level jobs that inexperienced workers need to get ahead. “

Do you think fast-food restaurants should be made to pay their workers more?

Bobby Jindal Calls for a New Energy Policy to Create Jobs and Grow the Economy

34 comments

In Heritage Impact

Gov. Bobby Jindal speaks at Heritage about his new energy policy. Photo: Steven Purcell

Gov. Bobby Jindal speaks at Heritage about his new energy policy. Photo: Steven Purcell

Louisiana Gov. Bobby Jindal unveiled a new energy platform for America in a speech today at The Heritage Foundation.

Noting that the United States has the largest natural energy resources in the world, even larger than those in Russia and Saudi Arabia, Jindal argued for expanded energy production to create jobs and strengthen the economy.

The oil and gas industry employs millions of Americans, and “millions of more jobs could be created if the federal government simply stays out of the way,” Jindal said. Continue Reading »

Heritage Expert Testifies Before Congress on Workplace Empowerment

Leave a Comment

In Heritage Impact

Rachel Greszler

Rachel Greszler

Heritage Foundation Expert Rachel Greszler testified before Congress’ Joint Economic Committee about the importance of workplace empowerment–and how a weak economy, outdated labor laws, occupational licensing rules, and government micromanagement of businesses thwart this goal.

She made six recommendations:

Policymakers should consider cost-benefit analysis of existing regulations and red tape, create greater certainty for businesses through fiscal discipline, and reform programs that discourage work among able-bodied individuals. Second, labor laws should be brought up to date, giving employees an individual voice on the job and the opportunity to be paid according to their work. Third, high marginal tax rates should be reduced and programs that impose disincentives for work should be reformed. Fourth, states should ease restrictions and requirements on licensure laws where evidence shows such laws to be unnecessary and harmful. Fifth, employers should consider allowing employees to choose between employer-provided benefits such as health insurance and cash or other benefits. Sixth, policymakers should look to the successes of less regulated businesses and entrepreneurs as ways to empower existing employers and employees, and should avoid micromanaging employers in ways that will reduce employee empowerment.

How do you empower workers in your business?

Why Government Should Cut Red Tape for Small Public Companies

Leave a Comment

In Heritage Work

Young, dynamic companies drive most job creation in the country. To launch and grow, these companies need access to capital–yet government regulations often interfere with this critical process.

This is why Heritage Foundation experts urge the Securities and Exchange Commission to cut red tape so small public companies can have better access to markets and investors:

SEC regulations—many of which, however, implement statutory requirements—impose very high costs on companies seeking to access the public securities markets. These costs are prohibitively high for small and medium-sized companies and impede their ability to access the capital needed to grow, innovate, and create jobs. Both Regulation S-K and Regulation S-X need to be revised to reduce these costs.

Have SEC regulations affected your small business?

The ‘Groundless’ Claims Made to Support the Ex-Im Bank

1 comment

In Heritage Work

Many of the claims made to support the Export-Import Bank, which subsidizes big businesses and foreign governments, are “groundless,” Heritage Foundation economist Salim Furth explains in the Wall Street Journal:

A sense of fairness and knowledge of economics teach me to oppose subsidies by default. In this case, the recipients of the subsidy are hoping to persuade Congress to make an exception from fairness and logic on empirical grounds. But the empirical claims they make–that Ex-Im supports small business and that Ex-Im’s subsidies create jobs–are groundless.

Heritage’s Diane Katz points out that while trade benefits the economy, the Ex-Im Bank’s subsidies are costing jobs.

Do you think Congress should reauthorize the Export-Import Bank?

Why Some States Are Doing Better Economically

6 comments

In Heritage Work

Stephen Moore

Stephen Moore. Photo: Willis Bretz

Low-tax states are outperforming their high-tax counterparts in business growth, job growth, income growth, and population growth.

That’s according to a panel of experts including Heritage Foundation Chief Economist Stephen Moore, economist Arthur Laffer, investor Rex Sinquefield, and tax advocate Travis Brown. They held an important discussion today at Heritage detailing the results of their new book, An Inquiry into the Nature and Causes of the Wealth of States.

Their quantitative research shows the fluidity of wealth and how it’s moving from states with the highest tax burdens to the states with lower tax burdens. Continue Reading »

This 94-Year-Old Protectionist Law Limits Trade Within the United States

14 comments

In Heritage Work

A protectionist law is actually hindering trade within the United States, according to a new report by Heritage Foundation experts Brian Slattery, Bryan Riley and Nicolas Loris.

The Merchant Marine Act of 1920, more commonly referred to as the Jones Act, requires that any goods shipped by water between two points in the U.S. must be transported aboard a U.S.-built and U.S.-flagged ship with a crew composed at least 75% by Americans: Continue Reading »

Free Enterprise Is Shrinking the Gender Pay Gap

10 comments

In Heritage Work

Heritage Foundation experts Rachel Grezler and James Sherk highlight the success of free enterprise in shrinking the gender pay gap. Their new report shows how differences in pay reflect not systematic bias, as liberals claim, but different choices made by individual men and women: Continue Reading »

The Best Way Out of Poverty Is Education, Not Hiking the Minimum Wage

8 comments

In Heritage Work

An increase in the minimum wage is not an effective way to lift Americans out of poverty. The real answer is still to equip them with the necessary skills to earn a higher wage, especially a high school diploma.

Heritage Foundation expert Mary Clare Reim reports on ways to help both youth and schools succeed in this mission: Continue Reading »

Raising the Minimum Wage Is ‘a Clever Diversion,’ Rand Paul and Steve Moore Say

Leave a Comment

In Heritage Work

Hiking the minimum wage isn’t the solution to America’s economic problems, Sen. Rand Paul (R-KY) and Heritage Foundation economist Steve Moore argue:

Obama says it is time working people “got a raise,” and he’s right. But we’d argue that raising the minimum wage to $10.10 is a clever diversion from the real crisis: falling middle-class incomes.

For the vast majority of workers, the problem isn’t a flat minimum wage; it’s a declining middle-class paycheck. The minimum wage affects, at most, only 6 percent of workers – and almost half of them are in starter jobs or are teenagers. What about the other 95 percent – especially those working parents with children?

A better solution, Paul and Moore suggest, would be to undo the government policies that are holding down wages–Obamacare, taxes, overtime rules, and fossil fuel restrictions.

How would you help American workers?

« Older Entries

What You'll Find Here

  • Heritage Impact - Reports on how Heritage is changing the debate in Washington, in the media, and around the country.
  • Heritage Work - Updates on Heritage Foundation research, analysis and other work to advance conservative principles in Washington and around the country.
  • Member Stories - Profiles of Heritage Foundation members from around the nation featuring their stories and why they support Heritage and conservative ideas.
  • Other Work of Note
  • Member Events