“The Great Resignation” – a phenomenon that has left employers scratching their heads and employees feeling empowered. As the global workforce continues to experience a seismic shift, one crucial aspect has emerged as the driving force behind this mass exodus: compensation. It’s no secret that employees are no longer satisfied with the status quo, and the age-old adage “it’s the economy, stupid” has given way to a new mantra – “it’s the increase in earnings, stupid.”
The Dram Shop Bill: A Law with Unforeseen Effects
The Dram Shop Bill, a 2017 state law, has been wreaking havoc on the hospitality industry in South Carolina. The law, which requires establishments that serve alcohol to carry at least $1 million in liquor liability insurance, was intended to protect patrons from the consequences of over-serving. However, its unintended consequences are now being felt, as policy premiums skyrocket, forcing bar and restaurant owners to reconsider their business practices or close their doors altogether.
The Blind Horse Saloon, a country music landmark in Greenville, is a prime example of the devastating impact of the Dram Shop Bill. After nearly three decades of operation, the saloon was forced to close its doors due to the exorbitant cost of liquor liability insurance. The owner, John Paul, expressed his frustration, stating, “Just got tired of dealing with it… I mean, I’m 84 years old, and my partner is 87. We don’t need this crap. And we’ve been in business for 29 years, never had any problems.”
The State of Liquor Liability Insurance in South Carolina
The situation is dire, with many insurance carriers pulling out of the state, leaving bar and restaurant owners with limited options. Chris Smith, executive director of the S.C. Bar and Tavern Association, explained, “Slowly but surely, insurance carriers have pulled out of the state of South Carolina. And the reason for that is, so many claims started coming in due to the $1 million policy.”
As a result, premiums have skyrocketed, with some establishments facing increases of up to 300%. State Rep. Jay Kilmartin (R-Lexington) shared his own experience, stating, “We may sell $12,000 a year in beer and wine… So that hurts us. We can’t sell it, the state can’t collect taxes from the sale of it. It hurts all the way around.”
The Impact on Small Businesses and Local Communities
The consequences of the Dram Shop Bill are far-reaching, with small businesses and local communities bearing the brunt of the impact. The S.C. Venue Crisis, an advocacy organization, has documented numerous closures, including Local Cue, a barbecue restaurant in Greenville, and Topside Pool Club in Greenville, among others.
The closures not only affect the businesses themselves but also have a ripple effect on the local economy. The loss of these establishments means fewer jobs, reduced tax revenue, and a diminished quality of life for local residents.
The Struggle is Real: Bar and Restaurant Owners Speak Out
The Emotional Toll of Liquor Liability Insurance Hikes
Bar and restaurant owners are not just facing financial struggles; they are also dealing with the emotional toll of uncertainty. The Blind Horse Saloon’s John Paul expressed his frustration and desperation, stating, “It ain’t worth it… We saw it coming. It’s a problem all over the state of South Carolina.”
The Practical Implications of Soaring Insurance Costs
The practical implications of soaring insurance costs are far-reaching, with owners facing difficult choices. State Rep. Jay Kilmartin (R-Lexington) turned in the liquor license for his cigar store in Columbia, citing the exorbitant cost of liquor liability insurance.
The Search for Solutions
The Role of Advocacy Groups in Addressing the Crisis
Advocacy groups, such as the S.C. Bar and Tavern Association, are working tirelessly to address the crisis. Chris Smith, executive director of the association, emphasized the need for legislative action, stating, “We need to get the legislature to understand the unintended consequences of this law.”
Potential Solutions and Workarounds for Bar and Restaurant Owners
While a solution is still elusive, bar and restaurant owners are exploring alternative options. Some are considering self-insurance, while others are looking into risk management strategies to mitigate the cost of liquor liability insurance.
The Need for Legislative Action to Address the Issue
The need for legislative action is clear. The S.C. Bar and Tavern Association is urging lawmakers to reassess the Dram Shop Bill and consider revisions that would alleviate the burden on small businesses. Until then, the hospitality industry in South Carolina remains in limbo, with many establishments fighting for survival.
Conclusion
Conclusion: “It’s the Increase in Earnings, Stupid”
The Greenville Business Journal’s recent article “It’s the Increase in Earnings, Stupid” highlights a crucial aspect of economic growth and development. The article effectively argues that the primary driver of economic prosperity is not just job creation, but rather the increase in earnings for individuals. By analyzing the data and case studies, the article demonstrates that higher wages lead to increased consumer spending, economic growth, and ultimately, better living standards. This key takeaway has significant implications for policymakers, businesses, and individuals alike.
As we consider the long-term implications of this trend, it becomes evident that prioritizing wage growth will be essential for sustained economic growth. The article’s emphasis on the importance of increasing earnings serves as a reminder that economic development is not solely about creating jobs, but about creating opportunities for individuals to earn a living wage and improve their socio-economic status. As we look to the future, it is crucial that we prioritize policies and initiatives that support wage growth, investments in education and skills training, and economic development that benefits all members of society.
In conclusion, “It’s the Increase in Earnings, Stupid” is a clarion call to action for policymakers, businesses, and individuals to prioritize wage growth as the key driver of economic prosperity. As we embark on this journey, let us remember that the true measure of economic success is not just GDP growth or job creation, but the tangible improvements in the lives of individuals and families. By putting people first and prioritizing wage growth, we can create a more equitable and prosperous society for all.