Well, there's probably truth to the intellectual property factor as well. The business equation is a complex multivariate problem with a long list of variables. Each and every one of them contributes in one way or another. For the last 12 months we've been learning about this new "pandemic" variable, whose coefficient went from 0 to 1 in an instant.

I see people often simplify businesses along high contrast dividing lines: big/small, greedy/not greedy, green/dirty, startup/lifestyle, etc.

Anyone who simplifies businesses along any line on a monochromatic plane has never run enough of a business to fully understand just how complex things can be. They grab one variable (minimum wage, taxes, regulations, oil, etc.) and think it can be manipulated without it affecting the aforementioned multivariate equation.

A sad example of this just took place a few weeks ago in California. I think it was in San Diego that the politicians decided grocery workers had to have a $4 per hour "hero" raise due to working through COVID. While everyone could agree that there are people who made sacrifices for the rest of us, as I learned to say, some problems don't pass math and physics. the end result was that the Kroger company, which owns Ralphs and a bunch of other brands, closed four stores (maybe 2, don't remember) because there was no way they could keep the doors open if they paid everyone an extra $4 per hour. So, a forced wage raise actually destroyed jobs --and this happened nearly instantly-- and people who had work found themselves on the street.

Businesses are not single variable problems.

It was Long Beach, not San Diego, and the situation is, as you say, not that simple. Kroger has talked about closing those two "underperforming" stores many times before. Kroger is a huge company that had record sales (over $100B) and record profits last year, so it seems unlikely they couldn't afford to absorb a temporary (the ordinance limited the extra pay to 120 days) rise in labor cost of 20-28% at two stores. More likely, Kroger is taking the opportunity to close two long-struggling stores while -- most importantly -- setting an example, i.e., sending a message to other jurisdictions which might entertain the idea of mandating higher wages that Kroger is perfectly willing to punish workers and customers if it comes to that. (Also, the stores didn't close immediately, they're scheduled to close April 17.)

Yeah, nothing is simple. My guess is that the stores were borderline in terms of viability and the $4/hr hike put them over the edge.

Still, it sucks that people lost their jobs this way. We need a system where politicians suffer real consequences for their actions. Not sure what this would look like, but it sounds good.

What we don't know is if the $4/hr hike caused employers to have to reduce worker hours, shift people to part-time basis, etc. Maybe that information will come out at some point.

Imagine a situation where you have 50 people making $12 per hour and you face an instant increase in labor costs to $16 per hour, or 33%.

That means the store has to INSTANTLY generate at least 33% more in profits (not sales, profits) in order to cover that increase. I don't know any business that can simply will a 33% increase in performance. This is where political thinking quickly becomes delusional. And, no, they are not sitting on fat margins that would allow absorbing such a thing.