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I don’t think high minimum wages really hurt employment as much as small/family business ownership rates since this just increases the startup capital and opera
by diogenescynic 7y ago
I don’t think high minimum wages really hurt employment as much as small/family business ownership rates since this just increases the startup capital and operating cost needed to run a business. So for some cities the trade off is probably worth it, but this is also why you see the same chains all over and a lot of unique/niche stores dying out.
- Ensorceled 7y agoAmazon, Walmart, and Costco are killing most of those stores, not minimum wage increases.
- trentnix 7y agoNonsense. Of course increased operational costs for businesses most sensitive to labor costs has an adverse effect on small business. That such increases occur at the same time price competition shrinks margin - such as price competition from the volume sellers you mention - simply exacerbates the problem.
- Ensorceled 7y agoSince real dollar wages are stagnant or declining for decades, with recent changes in minimum wage laws either barely correcting or not correcting this disparity, how can this be nonsense? How can decreasing real dollar operational costs (wages) be an increased cost?