Coffee Giant Teaches Employees Economic Lesson When Forced to Increase Wages

A basic fact of economics for businesses of all sizes is that when certain costs go up, like employee wages, other costs must be reduced in order for the businesses to retain a similar profit margin as was maintained before the changes. Thus, we see that in response to a mandatory hike of the minimum…

Source: Coffee Giant Teaches Employees Economic Lesson When Forced to Increase Wages

The employees of the Tim Hortons franchisees who have seen their benefits cut may be upset, but they should be upset at their government for foisting this mandatory cost increase upon their employer instead of allowing the free market to determine what wages should be.

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