>> "ALL IN" STARTS RIGHT NOW.
>>> GOOD EVENING FROM NEW YORK.
IM CHRIS HAYES.
THE REPUBLICAN PARTY HAS FOUND
THE ACHILLES HEAL IN THE BIDEN
ECONOMY, EXPENSIVE BURRITOS.
CHIPOTLE ANNOUNCED THEY ARE
RAISING PRICES TO COVER THE COST
OF INCREASING WAGES FOR THEIR
EMPLOYEES.
HEAVEN FORBID.
THE PRICE INCREASE IS ALL OF 4%. PRICES VARY BY LOCATION, BUT
PRICES VARY BY LOCATION, BUT
THAT BASICALLY MEANS IF YOUR
CHIPOTLE
CHIPOTLE BURRITO COST $10, IT
WILL GO UP $10.40.
COLOR ME A LITTLE SKEPTICAL THAT
IS GOING TO BE THE DECIDING
FACTOR IN THE MIDTERM ELECTION.
NEVER MIND CHIPOTLE PAID THEIR
CEO $38 MILLION.
BUT YOU CAN UNDERSTAND WHY
REPUBLICANS WANT TO RUN WITH
THIS.
THIS IS FROM THE NATIONAL
REPUBLICAN CONGRESSIONAL
COMMITTEE WEBSITE.
YOUR BURRITO JUST GOT MORE
EXPENSIVE.
NOW, THIS IS A CORE ANIMATING
ISSUE OF THE RIGHT, OF
CONSERVATIVES.
HAS BEEN FOR DECADES IF NOT
CENTURIES.
BUSINESS OWNERS AND TITANS OF
CAPITAL AND RIGHT WING SQUARE
MONGERING ABOUT WAGES.
INFLATION IS GOING UP.
YOU PROBABLY NOTICED IT IN YOUR
DAILY LIFE.
THERES NEW DATA OUT TAISHOING
THE CONSUMER PRICE INDEX.
THE PRICE OF A BUNCH OF STUFF IS
UP 5% ACROSS THE BASKET OF ITEMS
THEY MONITOR.
THATS THE FASTEST RATE OF
GROWTH SINCE 2008.
AS WEVE TALKED ABOUT PREVIOUSLY
ON THE SHOW, A LOT OF THAT SEEMS
TO BE TRANSITORY WITH THE
STRANGENESS OF THE ECONOMY
COMING BACK TO LIFE AFTER MORE
THAN A YEAR OF A PANDEMIC.
BACK IN MAY OF 2020, FOR
INSTANCE, A LOT OF THINGS LIKE
AIR FAIR AND CAR RENTALS WERE
REALLY CHEAP BECAUSE THERE WAS
ZERO DEMAND FOR THEM.
AS WE GET BACK TO NORMAL, DEMAND
AND PRICES ARE BACK UP.
AND IN MANY CASES WE HAVE A
MISMATCH BETWEEN THE DEMAND AND
THE AVAILABLE SUPPLY, HOW MANY
CARS THERE ARE ON THE MARKET,
FOR INSTANCE.
THERE IS A GOOD REASON TO THINK
A LOT OF THAT MISMATCH IS GOING
TO GO AWAY.
THATS THE BET THE BIDEN
ADMINISTRATION AND THE FEDERAL
RESERVE ARE MAKING.
THE DEEPER ISSUE HERE THAT IS
REALLY ANIMATING THE REPUBLICAN
PARTY AND THE CEO CLASS IS THE
FACT THAT LABOR IS SCARCE RIGHT
NOW.
IT IS HARD TO FIND PEOPLE TO
HIRE.
>> THE UNEMPLOYMENT RATE
DROPPING TO 5.8% IN THE MAY JOBS
REPORT, YET COMPANIES STILL SAY
THEY ARE DESPERATE TO FIND
WORKERS.
>> THE CHAMBER IS OUT WITH A NEW
REPORT TODAY CALLING THE WORKER
SHORTAGE A NATIONAL ECONOMIC
CRISIS.
>> AT THE VERY MOMENT THAT
UNEMPLOYMENT IS RISING, FEWER
PEOPLE ARE WORKING, AMERICAN
BUSINESSES SAY THEY CANT FIND
EMPLOYEES.
>> THIS LABOR FORCE PROBLEM
ISNT JUST LIMITED TO THE
RESTAURANT AND SERVICE
INDUSTRIES.
ITS IMPACTING BUSINESSES ACROSS
THE BOARD, INCLUDING
CONSTRUCTION.
>> RIGHT NOW WE ARE STRUGGLING
WITH EMPLOYEES.
ITS THE WORK FORCE HAS BEEN
PARALYZED.
>> ACROSS TEXAS RESTAURANTS ARE
HIRING AND GETTING CREATIVE TO
FILL POSITIONS.
THIS ONES OFFERING ROOM AND
BOARD AND MANY NOW HAVE SIGN-ON
BONUSES TO SWEETEN THE DEAL FOR
JOB SEEKERS.
>> AT DOTS DINER IN NEW ORLEANS,
YOU USED TO BE ABLE TO GET
SIZZLING BACON, EGGS AND GRITS
24 HOURS A DAY, BUT NOW --
>> IM 20 EMPLOYEES SHORT RIGHT
NOW TO BE ABLE TO OPEN 24 HOURS.
>> HUNGRY CUSTOMERS ARE FILLING
BOOTHS, BUT THE OWNER CANT FILL
SHIFTS.
>> WHY DO YOU THINK PEOPLE
ARENT APPLYING?
>> OBVIOUSLY IN MY OPINION, ITS
THE FACT THEYRE MAKING AS MUCH
MONEY STAYING HOME ON
UNEMPLOYMENT THAN THEY WOULD
AT -- BEING BACK TO WORK.
>> THERES A LOT OF PEOPLE WHO
THINK THAT WAY AND THE DATA ON
THAT DOESNT PAINT A VERY CLEAR
PICTURE.
BUT IF YOURE THE BOSS AND
YOURE LOOKING TO HIRE PEOPLE,
YES, IT IS EASIER IF LABOR IS
PLENTIFUL BECAUSE THAT IS CHEAP.
AND THEN YOU CAN HAVE YOUR PICK.
A LOT OF PEOPLE WILL APPLY TO
FILL YOUR POSITION AT YOUR DINER
AND THEY CAN SAY I LIKE THIS
PERSON AND NOT THAT PERSON.
WHEN THE LABOR MARKET IS NOT
LIKE THAT, WHEN LABOR IS SCARCE,
YOU HAVE TO HUSTLE OR YOU MAY
HAVE TO DO SOMETHING EVEN WORSE,
RAISE WAGES.
BUT FOR REPUBLICANS,
CONSERVATIVES, MOST BOSSES,
CEOs, YOU CAN TELL FROM THEIR
BURRITO FREAKOUT, RAISING WAGES
IS NOT SOMETHING THEY WANT TO
DO.
HERES HOW THE FORMER ECONOMIC
ADVISER TO PRESIDENT RONALD
REAGAN PUT IT.
>> FOR THOSE PEOPLE, SANDRA, WHO
ARE COMING INTO THE LABOR FORCE,
NOT OLD TIMERS BHO HAVE BEEN
AROUND FOR A WHILE, THE POOR,
THE MINORITIES THE
DISENFRANCHISED, THOSE WITH LESS
EDUCATION, YOUNG PEOPLE WHO
HAVENT HAD THE JOB EXPERIENCE,
THESE PEOPLE ARENT WORTH $15 AN
HOUR IN MOST CASES.
>> HE JUST CAME OUT AND SAID IT.
THE POOR, THE MINORITIES, THE
DISENFRANCHISED, THE YOUNG,
THEYRE NOT WORTH IT.
IM AFRAID YOURE WRONG, ART.
BECAUSE ECONOMIES -- THIS IS HOW
IT IS.
LABOR IS SCARCE.
SOME ARE HAVING TO DO JUST THAT.
SOME BUSINESSES HAVE, QUOTE,
FOUND A WAY AROUND THE WORKER
SHORTAGE WHICH IS RAISING WAGES
TO $15 AN HOUR OR MORE, LIKE THE
PITTSBURGH ICE CREAM PARLOR WHO
DID NOT PRODUCE A SINGLE
APPLICATION BETWEEN JANUARY AND
MARCH SO HE DECIDED TO DOUBLE
THE STARTING WAGE TO $15 AN HOUR
PLUS TIPS TO SEE WHAT WOULD
HAPPEN.
E SHOP WAS SUDDENLY FLOODED
WITH APPLICATIONS.
MORE THAN A THOUSAND FILED IN
OVER THE COURSE OF A WEEK.
THIS IS, OF COURSE, ELEMENTAL
ECONOMICS.
WHEN SOMETHING IS PLENTIFUL,
ITS GOING TO BE CHEAP.
WHEN IT IS SCARCE, ITS GOING TO
COST MORE MONEY.
ANOTHER WAY TO SAY LABOR
SHORTAGE IS JUST TO SAY WORKER
POWER.
AND WORKER POWER HAS BEEN
LARGELY MISSING FROM THE U.S.
ECONOMY FOR LITERALLY 40 YEARS
IF NOT MORE.
SINCE THE REAGAN ERA AND THE
LAST GREAT BOUT WITH INFLATION,
WEVE SEEN A VAST TRANSFORMATION
OF THE AMERICAN AND GLOBAL
ECONOMY.
WE CREATED IN REAGANS SHADOW A
NEW ECONOMY THAT OFFERS THIS
MARK, CONSUMER GOODS ARE CHEAP,
EVERYTHING FROM BURRITOS TO FLAT
SCREEN TVS TO ALL THE STUFF YOU
CAN BUY ON AMAZON OR TARGET
BECAUSE ITS MADE BY PEOPLE IN
OTHER COUNTRIES MAKING VERY
LITTLE MONEY.
CHEAPER THAN THEYVE EVER BEEN
TO OUR DOOR.
FOR YEARS PEOPLE DEFENDING THIS
MODEL HAVE SAID LOOK HOW CHEAP
THE TVs ARE.
HOW CAN YOU SAY PEOPLE ARE POOR
WHEN THEY HAVE SMARTPHONES?
THERES ANOTHER PART OF THE
BARGAIN, THE KEY PART IS THE
CHEAP GOODS GO TOGETHER WITH LOW
WAGES.
BECAUSE YOURE GETTING THOSE
GOODS FROM FOLKS MAKING VERY
LITTLE MONEY.
THE ONLY THINGS THAT ARE NOT
CHEAP ON TOP OF AT ALL ARE THE
PILLARS OF MIDDLE CLASS LIFE.
EDUCATION GETS MORE EXPENSIVE
EVERY YEAR, AS DOES HOUSING, AS
DOES HEALTH CARE.
WE MIGHT BE ON THE PRECIPICE OF
A MOMENTOUS CHANGE RIGHT NOW
WHERE WE TRANSFORM THAT BARGAIN
AWAY FROM A CHEAP ECONOMY TO A
HIGH WAGE ECONOMY.
AND THAT MIGHT MEAN BURRITOS
COST $10.40 INSTEAD OF JUST $10.
IT MIGHT ALSO MEAN YOU BUY A NEW
TELEVISION LESS OFTEN.
THERE MIGHT BE A TRADE-OFF LIKE
THAT.
ECONOMICS IS ABOUT TRADE-OFF.
I THINK ITS A TRADE-OFF MOST
AMERICANS WILL WILLING TO MAKE.
IN FACT, IF AMERICANS AGREE ON
ONE THING OVERWHELMINGLY IN A
VERY POLARIZED ERA WHERE NO ONE
AGREES ON ANYTHING, ITS WAGING
THE MINIMUM WAGE.
62% OF U.S. ADULTS SUPPORT
RAISING THE FEDERAL MINIMUM WAGE
TO $15 AN HOUR.
IF YOU GO BACK TO THAT
REPUBLICAN PARTY POST -- IF YOU
REVERSE THE MESSAGING ON THE
EXPENSIVE BURRITO, THEIR PROMISE
IS ESSENTIALLY WE WILL BRING