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> Of course, some businesses would not be profitable at raised prices. It is hard to tell from your comment, but you see that as a problem, right? I agree tha
by gwright 7y ago
> Of course, some businesses would not be profitable at raised prices.
It is hard to tell from your comment, but you see that as a problem, right?
I agree that some people will benefit from an increased federal minimum wage, but I don't understand how the negative aspects can be dismissed:
* some people will be unemployable at $15/hour
* some business models will be unworkable at $15/hour
* some people will lose jobs as headcount is reduced
* some people will lose jobs as businesses fail
* some businesses will be less profitable
* $15/hour ignores geographic cost of living differences
* consumers will pay more for good/services
In a free market, all these competing problems are resolved through millions of independent decisions by business owners, employees, and consumers for their particular situation. The idea that a bunch of politicians have magically come upon a single hourly wage that is optimal for all these situations is just non-sensical to me.
- rightbyte 7y agoYe, it's a problem if businesses fail. For both the owners and the formerly employed employees. And I think the concerns you present are valid. Where I live now (Denmark) there are not even any minimum wage. So having one is probably not really important. Any large coorparation that would pay "too low" would be blocked by unions. Small companies can pay whatever. In practice a minimum wage is like a really crappy government worker union. It's some protection against usary but the worst usary is not legal businesses anyway.