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I always found this such a weak argument. A small store deals with inflation all the time - for the rent it pays for the shop, the products it buys and services
by eirini1 7y ago
I always found this such a weak argument. A small store deals with inflation all the time - for the rent it pays for the shop, the products it buys and services it employs. Surely wages as well then? If, even with increased consumer spending being the result of increased minimum wages the small store cannot turn a profit anymore then it means that their business model is simply no longer up to date with modern times.
- manigandham 7y agoWhere's all this increased consumer spending coming from? This isn't guaranteed and rarely happens, and definitely doesn't go straight back to those businesses. Employees are the biggest cost, and wages when multiplied by benefits and taxes can have an outsized impact over fixed costs like rent. Sure a business might not fire everyone, but it might start removing some shifts or move some employees to part-time instead. These little changes add up. The greater point is that it's easy to say "the business model is no longer up to date" when it doesn't affect you. It's much different when your wages go to 0 instead because of other people who think they know better than you about what you need.