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Income Inequality

Posted by V the K at 2:05 pm - September 17, 2016.
Filed under: Economy,Gay Culture

Gay male couples out earn heterosexual couples by an average of $63,000 per year.

Men in same-sex marriages tend to earn significantly more than their lesbian or heterosexual counterparts, according to new data released this week by the U.S. Treasury Department. Gay men had an average household income of $176,000 in 2014, $52,000 more than lesbian couples and $63,000 more than opposite-sex couples.

This is obviously unfair to straight couples, and conclusively demonstrates that the economy is deliberately geared to benefit the 3%.

Where’s Bernie Sanders when you need him?

The Leftist Bubble Wrap

Posted by V the K at 1:25 pm - August 1, 2016.
Filed under: Economy

Pundits, politicians, and cronies living in the little bubbles that benefit from Obama’s crony socialism (deficit-driven spending targeted at Government bureaucrats and big investment banks) are baffled that folks devastated by Obama’s War on Coal and Regulatory War on Industry don’t see America through the rose-tinted spectacles of narcissism.

Most Americans also know that vast swaths of the Washington, D.C.-area are filled with wealthy people gorging themselves at the federal trough. They know that the rules don’t apply in Silicon Valley, where companies have been given a pass from taxes and many of the regulations that overwhelm ordinary American businesses. They know that when Silicon Valley businesses like AirBnB and Uber come to town, the laws often will be rewritten for their benefit.

Most Americans know about corporate executives like Marissa Mayer. She completely failed to turn around the struggling Internet pioneer Yahoo, though that’s what she was hired to do. Her “accomplishments” include buying the now-worthless blogging platform Tumblr for $1.1 billion. Despite her failure, if she’s not retained in the wake of the reported sale of Yahoo’s businesses to Verizon, Mayer is set to collect a pre-negotiated $55 million golden parachute. Most Americans know that they wouldn’t be treated so kindly if they lost their jobs.

(Paul) Krugman should spend some time talking to people in Flint, Michigan, the South Side of Chicago, California’s Central Valley, or any of the many decaying industrial cities and towns throughout the Midwest and Northeast. That might clear up some of his confusion.

 

Democrats Against Progress or the Sharing Economy

Posted by V the K at 8:48 pm - July 14, 2016.
Filed under: Economy

Hillary Clinton and Bernie Sanders took stands against Uber and its threat to the heavily regulated and unionized taxi industry. Now, Liz “Fauxcahontas” Warren is going after Air BNB to protect the hotel industry (which has a lavish lobbying arm).

In both cases, they are moving to protect old industries with outdated business models; the buggy whip manufacturers of the 21st Century.

Remind me again which party it is that can’t deal with change?

Quibbling with Sowell

Posted by V the K at 7:21 am - July 12, 2016.
Filed under: Economy

Ace quotes Thomas Sowell:

It bothers me a little when conservatives call Barack Obama a “socialist.” He certainly is an enemy of the free market, and wants politicians and bureaucrats to make the fundamental decisions about the economy. But that does not mean that he wants government ownership of the means of production, which has long been a standard definition of socialism. What President Obama has been pushing for, and moving toward, is more insidious: government control of the economy, while leaving ownership in private hands. That way, politicians get to call the shots but, when their bright ideas lead to disaster, they can always blame those who own businesses in the private sector.

Thus the Obama administration can arbitrarily force insurance companies to cover the children of their customers until the children are 26 years old. Obviously, this creates favourable publicity for President Obama. But if this and other government edicts cause insurance premiums to rise, then that is something that can be blamed on the “greed” of the insurance companies. The same principle, or lack of principle, applies to many other privately owned businesses. It is a very successful political ploy that can be adapted to all sorts of situations.

I would quibble that what Obama favors is a kind of Socialism, just that he achieves it through regulation rather than confiscation. But the end result is the same… a planned, political economy where political operatives make decisions according to their own prerogatives rather than letting people make decisions for themselves. The hugely expensive politically-driven push to wind and solar power that results in consumers paying more for energy is one example, and the wretched and unpalatable school lunches dictated by the whims of the president’s wife are another. Then there is, of course, Obamacare where the Government decides men should have to pay for women’s gynecological services and the mentally healthy must pay for the genital mutilation of transgendered people because these are voting blocs for the ruling political coalition. Britain’s NHS has politicized and bureaucratized the practice of medicine; Obamacare has achieved the same result with the thin veneer that private bureaucrats, rather than Government ones, administer the program.

If all a company’s decisions are dictated by the Government, the company is de facto socialized. And when the details of running the economy are worked out between corrupt politicians and corrupt businessmen, Obama has successfully nationalized the Chicago style of Government.

The Obamacomony

The size of the U.S. deficit isn’t the only thing they lie about. Unemployment is another.

Last week, The New York Times trumpeted, Jobs Roar Back With Gain of 287,000 in June, Easing Worry, with the official unemployment rate at 4.9%. Isn’t it wonderful?

“Wow, this one takes my breath away,” said Diane Swonk, an independent economist in Chicago.

Ooh, she’s “independent” – that makes her reaction valid! But here’s the real story.

  • The same jobs report has downward-revised the previous months’ numbers (from bad to horrible).
  • In the Bush years, the media would treat a jobs number in the 200k range as a crisis.
  • The Obama so-called “recovery” is the Weakest. On. Record.
  • Most of the jobs created in the Obama years, including the recent jobs report, are part-time and low-paying.
  • In the Obama years, tens of millions of Americans have given up even hoping for a job. “Labor force participation” has plummeted to lows not seen since the 1970s.
  • If we use the participation rate from early 2009 when Obama took office, the unemployment rate is 11%. (And that’s ignoring under-employment / the part-time jobs.)
  • And no, the declining participation isn’t because “the Baby Boomers are retiring”. They’re not retiring. Under Obama, they can’t afford it. They’ve been coming out of retirement, to take those low-paying, part-time Obamajobs from young people.
  • Young people face a crisis; many can’t get an entry-level job.

Perhaps this is why President Obama has the highest U.S. suicide rate in 30 years.

Deficit update

First, let’s do a National Debt update. You’ll see why, in a minute.

As of this day, the U.S. national debt is $19.3 trillion. ($13.9 trillion held by the public; $5.4 trillion “intragovernmental”, for example, Treasury bonds held by Social Security.)

When President Obama took over from President Bush, it was $10.6 trillion. ($6.3 trillion held by the public; $4.3 intragovernmental)

So, Obama has already more-than-doubled the part of the U.S. national debt that everyone agrees is important (what’s “held by the public”). And he’s on track to double the total, by the time he leaves office.

But there’s more. On this day 3 years ago, the total was $16.7 trillion. So, over the past 3 years, the U.S. operating deficit – the money that the U.S. Treasury actually had to borrow to pay for stuff – has been $2.6 trillion, or roughly $865 billion per year.

That’s funny because the three most recent U.S. budget deficits are supposed to be much smaller. 2014 – $483 billion, 2015 – $438 billion, 2016 – $616 billion; for a total of $1.5 trillion. (September-ending fiscal year means a 2-3 month shift from the dates I used above; but that does not alter the story drastically.)

What does it mean? It means they’re lying to us about the size of the U.S. budget deficit. And they’ve been lying for years, as I’ve blogged previously.

Oh, you could say “Come now, the accounting numbers are accurate, they’re just using some budget/accounting tricks to hide a big chunk of their spending-and-borrowing.” But I consider tricks to be lies. Don’t you?

According to left-wingers like MSNBC and Rachel Maddow, or even the Dear Leader Himself, His Dear Leadership has reduced the U.S. annual budget deficit by 2/3. No, pumpkins. It hasn’t. You lie.

Newsflash: Higher wages don’t come for free

Business 101: When paying an employee, you have to pay in line with their productivity.

  • If you underpay, you lose the employee.
  • If you overpay, you run up losses and lose your business.
  • If you raise the hourly wage, you must get more from each employee hour – and you must cut the hours/employees that won’t or can’t rise to the new, higher bar.

You may have seen the following last week, but I didn’t want to let it pass without comment. After raising wages over the last 18 months, Starbucks and its employees have been learning some lessons the hard way:

An online petition accus[es] Starbucks Corp of “extreme” cutbacks in work hours at its U.S. cafes…

[Starbucks] recently introduced technology that allows customers to order and pay from mobile devices. That service aims to…reduce bottlenecks in stores. [ed: reducing the number of employees needed per shift]

Starbucks has a software system that determines labor needs based on business trends…
Comments on the petition painted a picture of broad discontent at the company…
…many signers say they noticed cutbacks in U.S. staffing hours…
One central California store has seen its labor allotment shrunk by about 10 percent, even though sales are up…
“No matter what we do to save on labor at my store, the system tells us EVERY SINGLE DAY that we are at least 8 hours over in labor for the day and have to cut even more,” wrote [a petition] signer…

Like other restaurants and retail companies, Starbucks is wrestling with the effects of local minimum wage increases…tipping has fallen substantially amid broad customer adoption of the “Starbucks Rewards” program, which allows customers to pay with a loyalty card or mobile phones.

Suppose Starbucks gives in and boosts employee hours (arbitrarily; without a matching, widespread sales & productivity gain). What happens then? Operating budget overruns and closing stores. And/or price increases, declining sales, and closing stores. Perhaps eventually, a closing company. Thanks, Blue State lefties!

UPDATE: This oldie from The Guardian in 2014 may help us to see the problem:

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Why gold is (real) money

Posted by Jeff (ILoveCapitalism) at 6:15 pm - July 1, 2016.
Filed under: Debt Crisis,Economy,Free Enterprise

In 1912, testifying before Congress, the banking giant J.P. Morgan famously said “Money is gold, nothing else.” The quote is often repeated in a fake-but-accurate form as “Gold is money, everything else is credit.”

On and off for 15 years, I’ve read/thought about why that is so; especially in view of the people (both Left and Right) who deny it. I thought I would lay out the answer for anyone with eyes to see.

According to the IMF, money is a medium of exchange, a unit of account and a store of value. It arose as an improvement on barter.

Instead of having to directly barter my apples for your oranges, I would trade my perishable apples to some third party for a particular, third good. Wait…Why would I do that? I would do it if the third good is generic, non-perishable, popular (widely admired and valued), limited in supply, and easily handled and stored. Then I can KNOW that you’ll take it trade for your oranges, and the doctor will take it from you in trade for his services, and the baker from the doctor, and so on, forever.

Right there, we can see that real money is some physical good that society’s marketplace finds to be sufficiently generic, non-perishable, popular, supply-limited and easily moved/stored – so that the marketplace will use it as a medium of exchange, and then logically also as a unit of account and a store of value. It could be shells, cattle, salt, cigarettes. But most societies in human history found that silver and gold made the best money, and then mainly gold.

In technical terms, gold is money because it is the good that has the slowest-declining marginal utility.

In layman’s terms (saying much the same thing), gold is the most marketable and hoardable good; the one good that any sane trader would always want a little more of. Oil, apples, wheat, cattle, U.S. Treasury bonds, Bitcoin, Whitney Houston CDs, etc. are not like that.

“But gold is useless!” anti-gold people will say. “It’s a pet rock!” Sorry, but that is a feature not a bug (as they say in software engineering). The fact that gold isn’t needed for some other crucial use is ONE of the reasons why it is so hoardable, and became the most important money.

(Other reasons, shared partly but NOT entirely by silver, are that it’s beautiful and artistic, straight women love it, it’s enduring / corrosion-proof, it’s divisible, it’s ultra-generic as a mere element on the periodic table, it’s compact, it’s user-friendly because almost anyone can hold it and understand what it is, it’s somewhat rare but not too rare – and again, you’re always OK with owning a little more of it. But I digress.)

In the West today, gold is no longer currency. Currency is a representation of money that gets used in a modern country’s daily life. Originally, currency was claim checks (called banknotes) on actual gold or silver at a bank. But today, we use dollars, euro, yen, etc. And what are those things? They’re inventions of certain government-sponsored banks.

They come into existence by decree, or by the mere click of a keyboard; thus the term, “fiat currency”. In effect, a fiat currency is non-redeemable shares in a particular central bank’s assets. (Yes. On each central bank’s balance sheet, the currency + bank reserves that it has created are the major part of the Liabilities + Equity column.)

And what do central banks hold as assets? Lots of financial-system crap – including government bonds, sub-prime mortgage bonds (what caused the 2008 financial crisis), other currencies, and even company stocks (the Swiss central bank is big on Apple). Plus, some gold. The top central banks hold thousands of tons.

And of those central-bank assets, which is the best and most important? Hint: Gold is the only asset in the financial system that can ever be free of “counterparty risk”; that is, the only asset which isn’t also somebody else’s liability.

A bond is somebody else’s liability. It is good only if they stay solvent. A government bond is just the government promising to pay some fiat currency, subject to risks like default or hyperinflation. Central-bank gold does not have those risks. Which is why they value it, and why the “safer” or more-prestigious central banks tend to have larger gold reserves, which adds to their strength.

Thus, although the Western world no longer uses gold as currency, it is still the “pet rock” (or Rock of Gibraltar) upon which rest the key central banks, and so the entire financial system. As such, gold is real money. And everything else – from government bonds, all the way down to your bank account and the cash (the fiat currency) in your pocket – is, in the end, mere credit.

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Poverty in America; What’s Your Plan B?

Posted by V the K at 8:59 am - May 26, 2016.
Filed under: Economy

Apparently, poverty in America means our morbidly obese beggars are driving around in brand new pick-up trucks.

I suppose it’s plausible that this fella recently suffered a reversal of fortune and bought the truck in better times. Still, it doesn’t seem like the journey from “Buying a new pick-up” to “Panhandling at intersections” would be as short as that.

Have you ever wondered what would happen if you did suffer a massive economic reversal? Personally, I do the best I can to insure myself against such an eventuality. I work hard at my job. I invest in additional training to keep my skills current. I keep enough money in savings to pay the mortgage for six months. I have enough emergency food to get by for months if I had to. Aside from the mortgage, I don’t carry much debt.

And if all that failed, I’m willing to take a job that’s beneath me and live in small, crappy house if I have to.  I maintain good relationships with my relatives. So, in a really last ditch resort, I could crash on my brother or sister’s couch *if* I ever really had to.

Do you ever think about what you would do if you faced sudden poverty?

I think classes on Personal Finance and Financial Planning should be required in high school; they would be far more useful the LGBTQAAZXDS9ROLFMAO hyrstory or Social Activism 101.

The Grapes of Math

Posted by V the K at 8:54 am - April 7, 2016.
Filed under: Economy

California (and New York) imposed $15-an-hour minimum wage laws that will be phased in over the next five years.  This is what is going to happen:

  1. Big Businesses will replace as much of their work-force as possible with automation.
  2. Small businesses will go out of business or relocate to more business-friendly states.
  3. All businesses will try to get more done with fewer workers.
  4. Contrary to what the left claims, welfare rolls will not be reduced because welfare recipients adapt to minimum wage increases by working less so they can stay on welfare.

Hey, #FightFor15 #FeelTheBerners, Meet Your Future

Posted by V the K at 10:49 am - March 19, 2016.
Filed under: Economy

I stood in line to order a custom burger from a futuristic McDonald’s kiosk, and now I get why the company’s betting on the technology.”

 

img_4295

Moonlighting

Posted by V the K at 7:45 am - October 14, 2015.
Filed under: Economy

I have been posting at Ricochet.com, and have not been making many friends there. Mainly because of articles like this one, “Six Myths That Are Killing the Republican Party.”

Most of the comments I got were focused on my second myth, that “Free Trade Is Totally Good for the Economy.” I subsequently reworded this to “All Foreign “Trade Deals” Must Be Supported Without Question Because Free Trade Has Absolutely No Downside for Anybody (Except Maybe Unions).” In hopes of clarifying my point.

I think a lot of people missed my point on ‘Free Trade,’ because internet. I never said that Free Trade was bad, I was saying that the Republican Party’s knee-jerk support for all Trade Deals hurts them with voters. Trade deals (particularly secretly-negotiated, 2,000 page monstrosities like the TPP {a.k.a. Obamatrade}) have had a devastating effect on the American Middle Class. The last two major trade deals… NAFTA and granting Most Favored Nation (MFN) status to Communist China were both pitched on the basis that Free Trade was an unalloyed good, and the deals would bring millions of jobs and higher incomes to the middle class.

Neither of these happened. One-third of manufacturing jobs in the United States have disappeared since NAFTA/MFN, and middle class incomes have fallen by >$5,000 per family. These trade deals have not been good for everybody. Furthermore, the TPP is full of carve-outs for connected cronies and contain provisions for the massive import of cheap foreign. (Supporting links are in the original article or subsequent articles).

The points I failed to get across are: The Republican Party loses out on working class voters by blindly supporting trade deals that hurt millions of Americans, and that maybe their blind support of anything labeled ‘Free Trade’ should be re-thunk.  That was all I was saying, but I think I failed to make that point well and was attacked for being “against free trade” in the comments that followed.

Americans Need Not Apply

Posted by V the K at 10:58 am - October 2, 2015.
Filed under: Economy

According to Zero Hedge, for every job that went to a native-born American in 2007, three jobs went to foreign and immigrant workers. And it gets worse from there.

With that out of the way, here is the punchline (which is likely related). While we “know” that a paltry 142K jobs were added according to the Establishment survey, a far more disturbing trend emerges when observing the Household survey, which conveniently breakdown down the number of “native-born” and “foreign-born” workers. In September, the latter rose by 14,000 to 24,928.

That was the good news. The bad news: native-born workers saw their ranks tumble by 262,000!

The US Chamber of Commerce — which wants to replace even more American workers with cheap foreign labor — is fixin’ to spend $100 Million to defeat those who oppose this agenda.

After budgeting $50 million to elect establishment-friendly candidates in the 2014 election cycle, the chamber will reportedly spend as much as $100 million in the 2016 election cycle to crush conservatives. According to a Roll Callreport, some of the group’s “top targets in 2016 will be right-wing, tea party candidates” who have opposed amnesty for illegal immigrants, Obamatrade, and reauthorizing the Export-Import Bank.

The Chamber of Commerce’s ultimate goal is to reportedly win back “the soul of the Republican Party” by electing more establishment Republicans “in contested primaries to strengthen their hand during policy debates on the Hill.”’

When the CoC says “Jump,” the GOP Leadership says, “Yes, sir, lead us to the cliff.”

Hippie Economics FAIL!

Posted by V the K at 6:00 pm - August 1, 2015.
Filed under: Economy,Socialism in America

Seattle CEO Dan Price won raves from the economically-illiterate press when he announced some months ago that he was raising the minimum wage at his company to $70K per year. Many on the smug ignorant left were elated, “See, you selfish conservatives, it is possible to be financially successful and egalitarian.”

And those of us who actually understand how economics works endured the smug snottiness because we wanted to wait and see how it worked it.

Now, we can see how it has worked out.

I’m working as hard as I ever worked to make it work,” he told the Times in a video that shows him sitting on a plastic bucket in the garage of his house. “I’m renting out my house right now to try and make ends meet myself.”

The Times article said Price’s decision ended up costing him a few customers and two of his “most valued” employees, who quit after newer employees ended up with bigger salary hikes than older ones.

“He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a bump,” Gravity financial manager Maisey McMaster, 26, told the paper.

She said when she talked to Price about it, he treated her as if she was being selfish and only thinking about herself.

“That really hurt me,” she said. “I was talking about not only me, but about everyone in my position.”

Approaching burnout, she quit.

Socialism in the Workers’ Paradise of Venezuela isn’t working so well either.

I have come to believe that what makes a man conservative is simply understanding economics and human nature. On the other hand, I suppose there are leftist leaders … Castro, Mao, Obama, Chavez … who don’t necessarily misunderstand them so much as exploit the ignorance of their followers on those topics.

What Greece Teaches Us

Posted by V the K at 4:11 pm - July 5, 2015.
Filed under: Economy

Economists around the world are fretting about what the Greek fiscal collapse means for the rest of the world. Well, it’s quite simple, really. It means that socialist economics are unsustainable. It means that a fiscal regime based on massive borrowing to finance a bloated public sector, lush benefits for civil servants, rampant welfare fraud, and systematic tax evasion by the wealthy and politically connected cannot long endure.

The Obama Administration’s top economists are trying as hard as possible not to learn any lessons from this.

 

McDonald’s Rebrands as a “Progressive” Burger Company

Posted by V the K at 12:02 pm - June 21, 2015.
Filed under: Economy

So, let me ask you. If you find yourself craving a burger, does the social philosophy of the company that vends the burger matter more than the taste and cost of the burger?

The new corporate leadership at McDick’s thinks it does, or perhaps, should
.

McDonald’s British-born CEO Steve Easterbrook clarifies things, sort of, while speaking a strange business dialect: McDonald’s will be “more progressive around our social purpose in order to deepen our relationships with communities on the issues that matter to them.”

bobsburgers_s2_c_right

Just make me a burger and let the SJW’s worry about “social purpose”

 

Democrats Against Hard Work

Posted by V the K at 7:35 pm - May 7, 2015.
Filed under: Economy

Democrat Senator Cory Booker is outraged that some people have to work 50 hours a week to get ahead in the world.

A single parent of two children would need to work 50 hours a week at a minimum-wage job in the U.S. to earn 50% of the nation’s net median household income, the organization’s international equivalent for the poverty line. “That’s just wrong.” – Cory Booker

Working 50 hours a week is injustice to Cory Booker?

“Have you ever had a f#cking real job?” asks Ace at the link.

Recently, I had a conversation with my son, who was frustrated by his inability to move up as rapidly as he would like. I had to explain to him that hiring an employee is making an investment; for an employer to hire someone even at minimum wage is roughly equivalent, in terms of cost, to buying a higher-end pickup truck. Before an employer makes that kind of investment, they want some assurance that the investment is going to pay off; which is why they want things like credentials and references. As an indicator of intellect or ability, a college degree is meaningless. However, it does show an employer that you are capable of starting and finishing a long-term task.

The Cory Bookers of the world don’t get any of this. Everyone is entitled to whatever they think is a “living wage,” whether they provide living wage value to an employer or not.

Face it, when you looked at the protesters in Baltimore or Ferguson… who would want to hire them? Bitter, angry, entitled, often barely coherent, and likely to fly into a rage at the slightest perception that they are not getting enough.

(Once Again) Obama Helps Big Corporations Screw American Workers

Posted by V the K at 10:12 am - March 26, 2015.
Filed under: Economy

While everyone was distracted talking about the First Lady’s hairdo, the Obama Administration quietly took some ‘Executive Action’ to help large corporations replace American workers with cheap foreign labor.

Obama intends to make it easier to bring more foreign guest workers to the United States — likely at significant cost to workers already here — by loosening the rules governing something known as the L-1B visa program. Under the program, a multinational company with offices in the United States can move workers from abroad to live and work in the U.S. for as long as five years in what is known as an intra-company transfer. There are almost no rules concerning what those workers can be paid, so there is no barrier to a company firing American employees and bringing in workers from foreign facilities to replace them at much lower pay.

Where in the hell did anyone get the idea that the Democrat Party was the friend of the working man (and woman)?

 

Player 2 Has Entered the Game

Posted by V the K at 9:41 am - March 23, 2015.
Filed under: Economy,Tea Party,Team Sequester

Ted Cruz announced he is running for president, which comes as a surprise to no one. I like Ted Cruz a lot, but I am wary of ideologically driven men who run for president before completing a single term in the senate. That has never worked out well for us as a country.

The Democrats are attacking Ted Cruz as the architect of the Government “shutdown” that they claim “cost the economy $24 Billion.” To me, and others who can process information in a rational way, this actually makes the case for Ted Cruz or someone like him. When Democrats make the attack that Government spending is necessary to sustain the economy, they are admitting that the economy is dysfunctional. If the economy requires trillions of dollars in deficit spending to keep from collapsing, something is deeply wrong with it.

And if you think that constantly running up Trillions of dollars in debt is a sustainable economic model, I know an adult pre-school in Brooklyn who will gladly accept your Visa card.

Seattle Leftists Encounter Cause and Effect

Posted by V the K at 5:46 pm - March 16, 2015.
Filed under: Economy

Progressive left Utopia Seattle raised it’s minimum wage to $15 an hour because most of its voters are selfish and economically illiterate. As of April 1st of this year, a $15 per hour minimum wage that will begin to be phased in over the next 3-6 years depending on the size of the business. However, there are going to be a lot fewer people in the category of “People who have jobs in the city of Seattle” by the time all businesses are subject to the new wage.

Last month—and particularly last week— Seattle foodies were downcast as the blows kept coming: Queen Anne’s Grub closed February 15. Pioneer Square’s Little Uncle shut down February 25. Shanik’s Meeru Dhalwala announced that it will close March 21. Renée Erickson’s Boat Street Café will shutter May 30 after 17 years with her at the helm…What the #*%&$* is going on? A variety of things, probably—and a good chance there is more change to come.

In addition to restaurants closing, hotels are also cutting staff and raising room rates. The full force of the wage requirement is a few years off. Businesses like restaurants with razor thin profit margins are the canaries in this particular economic coal mine.