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Why Would Raising The Minimum Wage To $15 Be A Bad Thing?

  1. PhoenixV profile image69
    PhoenixVposted 2 years ago

    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?

  2. Discordzrocks profile image79
    Discordzrocksposted 2 years ago

    Interesting idea, but then store clerks will actually start having money, and I like the demeaning look on there face. Jk

  3. fpherj48 profile image77
    fpherj48posted 2 years ago

    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.

    1. bradmasterOCcal profile image29
      bradmasterOCcalposted 2 years agoin reply to this

      I agree. In addition, the govt gets double the FICA for the treasury, at the expense of the business owners. These workers will probably never see the benefits from SS, or it will be 30 or 40 years from now.

  4. Ericdierker profile image54
    Ericdierkerposted 2 years ago

    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.

  5. tamarawilhite profile image90
    tamarawilhiteposted 24 months ago

    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.

 
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