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According to The American Interest, local minimum wage hikes cause restaurants to leave or shut down and deter new ones from entering, according to a new Harvard Business School study of the San Francisco Bay Area restaurant industry that contradicts the orthodox liberal view that steeply raising the cost of unskilled labor will not affect jobs or hiring.

1. What did the study show about WHICH restaurants were forced to leave or shut down due to the rise in minimum wages?
2. What does this say about the clientele for these restaurants and the price of a good meal?
3. Do you agree or disagree with a policy to raise the minimum wage? Why or why not?
4. Do you agree with the author of this article? Why or why not?

Staff. (2017). Gentry Liberalism in San Francisco. The American Interest, April 19 (Retrievable online at