Reviews | Loony Economics: Republicans Blame Democrats For Rising Chipotle Burrito Prices

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Republicans have finally found a problem to run in next year’s midterm election. Apparently, Dr Seuss and Mr Potato Head were not gaining enough ground …

“The Democrats’ socialist stimulus bill has caused a labor shortage and now burrito lovers around the world are footing the bill,” NRCC spokesman Mike Berg said.

If wages at the bottom of the ladder go up because employers have to pay more to get the workers they need, that’s okay. It is a victory.

You heard that right. They blame Democrats for the price hike on Chipotle burritos.

The GOP’s tortured logic is that US bailout unemployment benefits forced people to stay home rather than look for work, resulting in labor shortages that forced employers like Chipotle to raise wages, which forced them to raise their prices.

Hence, Chipotle’s more expensive burrito.

It’s not just a crazy economy. It’s a dangerously wacky economy because you would think so, leading to all kinds of stupid public policy.

Start with the idea that $ 300 a week in federal unemployment benefits keeps Americans from working.

Since very few unemployed workers qualify for state unemployment benefits, the Republican claim is that legions of workers have chosen to become couch potatoes and raise $ 15,000 a year rather than finding a job.

I challenge a Republican lawmaker to live on $ 15,000 a year.

In fact, the reason workers are refusing to re-enter the workforce is because they lack childcare services or are still concerned about their health during the pandemic.

Also, if employers want additional workers, they can do whatever they want for whatever they want more but cannot get at the current price: pay more.

It is liberal capitalism at work … that Republicans claim to love.

When Chipotle wanted to attract more workers, he increased his average wage to $ 15 an hour. That comes down to about $ 30,000 a year per worker – still too little to live on, but double the federal unemployment benefit.

Oh, and there’s no reason to assume that this pay rise forced Chipotle to raise the price of his burrito. The company had other options.

It would have been possible for Chipotle to avoid increasing its burrito prices by paying its executives less. But Chipotle decided otherwise.

Chipotle executives are among the highest paid in America. Its managing director, Brian Niccol, made $ 38 million last year, or 2,898 times more than the typical Chipotle employee. All of Chipotle’s senior executives got massive pay raises.

It would therefore have been possible for Chipotle to avoid increasing its burrito prices by paying less for its executives. But Chipotle decided otherwise.

By the way, I keep hearing Republican lawmakers say that the GOP is the “party of the working class.” Well, if so, he should be celebrating when hourly workers get a raise instead of yelling about it.

Everyone should rejoice when those at the bottom get higher wages.

The typical American worker has not had a real raise for four decades. Income inequality is out of control. The inequality of wealth is in the stratosphere (where Jeff Bezos is heading, apparently).

If wages at the bottom of the ladder go up because employers have to pay more to get the workers they need, that’s okay. It is a victory.

Instead of complaining about a so-called “labor shortage,” Republicans should be complaining about the shortage of jobs paying living wages.

Don’t hold your breath. Or your guacamole.

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