How many examples does one need to understand that socialism doesn’t work? How about one more?
Bloomberg reported recently that the last “pay-what-you-can” location of Panera Cares restaurants, located in Boston, will be closing down February 15th due to an unsustainable business model.
According to the Daily Wire:
While Panera Cares billed itself as a "non-profit" restaurant designed to feed low-income people, the business model was anything but. Rather than create a charitable organization that distributes food to needy families or a discount outlet or even a $1 menu (like every other fast-food restaurant), Panera tried to create a socialist system in which meals were offered at a suggested donation price. That means some people would pay more while others would pay less based on what they felt like or could afford. By not simply offering food at a low price (hat-tip, Dollar Tree), Panera completely removed any incentive for patrons to meet even the lowest standards of consumer/retailer exchange. The result: some people paid their fair share while others enjoyed a "free lunch.”[…]
Panera Cares went on to open five locations in cities like Dearborn, Portland, Chicago, Boston, and St. Louis. None of the restaurants were self-sustaining, with some locations reportedly being "mobbed" by students along with homeless people looking for a free meal.
Everyone always sticks with the point that socialism has led to millions upon millions of deaths throughout history. But, one also needs to take into account socialism’s destructive toll on economies.
Don’t tell that to Socialist Rep. Alexandria Ocasio-Cortez (D-N.Y.), who has a degree from Boston University in economics. I still don’t understand how you can be both an economist and a socialist, but I digress.
Panera Bread admitted in a statement that their utopian mission failed.
“Despite our commitment to this mission, it’s become clear that continued operation of the Boston Panera Cares is no longer viable,” Panera Bread said in an emailed statement, according to Bloomberg. “We’re working with the current bakery-cafe associates affected by the closure to identify alternate employment opportunities within Panera and Au Bon Pain.”
When are people going to understand that there is no such thing a “free lunch?” Someone has to pay for “free” anything.
As a business, you can't pay your employees an inflated minimum wage while giving out free food, hoping that the customers that do pay give extra to support the people that don’t. It’s simply not sustainable in the sense that anyone can claim poor and get a free meal. There’s no incentive for some people to lift themselves out of poverty and begin paying for things if you’re just going to give it to them — no sense of responsibility.