Why Would Raising The Minimum Wage To $15 Be A Bad Thing?
What would happen to small mom and pop businesses and their employees? Would this make less competition for large corporations? Will the price of common goods go up? Would it create inflation?
Interesting idea, but then store clerks will actually start having money, and I like the demeaning look on there face. Jk
First, I'd like to mention that our fellow writer Ralph Schwartz has recently published a fantastic hub on this very topic. I recommend everyone read it for the best, most realistic & detailed information on the minimum wage debate/discussion.
It's not really a matter of bad or good. It's economics, the hard core facts of being a business owner & the issues of profits & losses. Should the $15.00 minimum wage become law, thus making it mandatory employers pay this amount per hour to each & every employee, this is when the basic facts will become quite apparent.
Business owners will most assuredly hire "fewer" individuals, meaning the work load increases per employee. More often than not the prices of goods & services will increase, leading to the possibility of a drop in customer base & increase. What needs to be fully understood is that businesses exist to profit. If expenses increase, something & someone is sacrificed in order to achieve profit. This is IT, in a nutshell.
Again, I suggest you read Ralph's excellent Hub.
I think of it this way. It makes no economic sense.
But it makes compassionate sense.
Trying to make it work by arguing the numbers just does not work. Of course it just gets passed on to the consumer in either increased prices or lack of products and services. There will definitely be a negative impact on small business and it most assuredly will add to inflation.
But making a wage below that is brutal on the worker.
It really is a social call because it just cannot be argued economically.
So what tips it for me is government interference. When in doubt, less government mandates.
1. Small companies without the profit margins lose to bigger businesses that can
2. Companies of all sizes reduce labor needs to save money with more automation, self service, etc
3. Increased demand for illegal immigrants who will work for less than the minimum wage, in addition to the existing demand to get around paying payroll taxes or offer benefits
4. If the employer has to pay $15 an hour, they will not hire the inexperienced, the former felon, the young kid. Europe has high rates like this, and that is why they have 50%+ youth unemployment.
5. More companies will outsource manufacturing than already have, as well as any service they can do remotely. Layoff more telemarketers, hire more Indian subcontractors doing it from Mumbai.
by SparklingJewel5 years ago
here is one "perspective of facts"...anyone have another as well put together source of a "different perspective of facts" ?Seriously, just like the economy and how it is run, or how businesses are...
by rhamson2 years ago
Two trains of thought are being bantered back and forth. Does a raising of the minimum wage create job loss and lower profits and more unemployment or does it increase disposable income thereby jump starting the economy...
by Daisy Rivera3 years ago
Do You Think About The Minimum Wage Should Be Increased or Decreased?
by Barefootfae5 years ago
Once again there is a call to raise the minimum wage.Now....common sense and a little education will tell you that when you raise the minimum wage, prices go up to compensate. Also, you stand the chance of having a nice...
by Sychophantastic3 years ago
What do you think of Nick Hanauer's suggestion that we have a $15 minimum wage?His article suggesting this can be found here:http://topinfopost.com/2014/06/30/ultra … are-coming
by El Shaddai 201623 months ago
Why do so many people support an increase to minimum wage?I will be the first to tell you that we should help as many people as we can, within reason. Minimum wage jobs are not meant for those with families. ...
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