Maryland's restaurants aren't going out of business fast enough, lawmakers in the state's capital of Annapolis say, and a pair of Democrats in the legislature have a plan to speed up the process. On top of previous hikes to the state's minimum wage, which have been a factor in many restaurant closures and staff reductions statewide, their new bill would create a 2026 ballot question asking voters to approve a minimum wage of $20-an-hour. If approved by voters, the question would also force restaurant owners to pay that $20 wage to tipped workers, as well. The bill is expected to be taken up by the Democrat-controlled Maryland House and Senate next month.
Montgomery County was the vanguard of the proletariat in the effort to raise the minimum wage in the previous decade. The Montgomery County Council
was warned by business owners, the Maryland Retailers Association, and the Restaurant Association of Maryland that a significant wage increase would put many enterprises out of business. Their predictions came to pass, as Montgomery's already-moribund economy was slammed by the higher wage requirements, higher taxes and new regulations, and the Council's disastrous "Nighttime Economy" initiative that ended up destroying the nighttime economy. Bars, stores, and restaurants that had endured for thirty or fifty years, serving multiple generations of Montgomery County residents, were suddenly closing left and right.
The nightlife scene in Bethesda looks starkly different from what it was prior to the last decade. In fact, you can't really look at it at all, because it no longer exists. Along with record numbers of restaurant failures countywide, at least 24 nightspots closed in Bethesda alone. Downtown Bethesda's streets are now dark and lonesome after 9:00 PM.
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Demolition of Regal Cinemas Bethesda 10
cineplex in 2017 |
The impact of the Council's "Nighttime Economy" catastrophe in Bethesda was capped off when Barnes and Noble closed, and the Council allowed the town's only major cineplex to be demolished, without requiring the developer to replace the theater - even though the Minor Master Plan Amendment that permitted the demolition provided the Council with the authority to impose just such a requirement. The public plaza outside the former bookstore that previously teemed with crowds during warm weather was suddenly deserted. A "spaces available" sign outside the public parking garage at Bethesda Row that usually read "FULL" during the peak dinnertime hours now showed hundreds of spaces available. The counter was eventually deactivated to cover up the embarrassment.
There are now not only fewer restaurants in Montgomery County, but fewer restaurant workers, as well. Fast food establishments that haven't closed now sport touchscreens that eliminate the number of workers needed to man (or woman) the counter. Chains like McDonald's are on the verge of total automation, only slowed by the open revolt a speedy conversion to this technology would spur among unions, and the mainstream press that already delights in bashing restaurant chains that allow working class people to eat cheaply without government welfare assistance.
Many writing for the "Buzz Insider"-style websites, and even more among the world of TikTok "influencers," were fooled into believing McDonald's' new CosMc's concept is a super-cool place to film yourself waiting in an hour-long line of cars, to get a million video views of yourself making moronic faces while sipping a Sour Cherry Energy Burst. In reality, it is a test run for the "Fight for $25" future, a future of a single supervising employee monitoring an array of robots serving precisely-made Big Macs and Egg McMuffins.
Along with Governor Wes Moore's proposal to raise taxes on the "rich," the proposed wage hike will indeed speed up the bankruptcy process for mom-and-pop restaurants across Maryland. Restaurants - and most retail - are very slim profit margin businesses to start with. The margin is even slimmer in hellaciously-anti-business counties like Montgomery. Having elected officials who don't understand this, or much of anything about how business works, is always potentially fatal to the independent entrepreneur in MoCo and Maryland.
This financial illiteracy among our elected officials leads to measures such as the higher taxes, fees, and wages being proposed fast and furiously in Annapolis this month. It leads to a state where many elected officials and government employees end up making more money annually than the private businesses they regulate. But as we've seen already in Montgomery County, which fell from its lofty perch among the
Forbes "Top Ten Richest Counties in America" list during MoCo's purge of the free enterprise system last decade, the more you pile on the taxes and wage hikes, the less revenue you get. Taxation is not only theft, but generates diminishing returns as rates increase. The more you squeeze, the less you get.
Montgomery County has already reached rock bottom in the D.C. region, or close to it, in every significant economic development category compiled by the U.S. Bureau of Labor Statistics. Even Gov. Moore has admitted Maryland's economy is stagnant, and its economic and job numbers
lag far behind the national average since 2017. Yet, Annapolis wants to again join Rockville in amplifying the assault on the small businessperson even further. The question for our representatives in Annapolis this year is, "How much lower do you want to go?"
