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What would increased minimum wage due to small business (<$50m/yr in revenue)? Wouldn't it force them to cut shifts/hours/consolidate positions?
by MuffinFlavored 7y ago
What would increased minimum wage due to small business (<$50m/yr in revenue)? Wouldn't it force them to cut shifts/hours/consolidate positions?
- jotm 7y agoFor $1/hour? I'd hope it would force them to review their expenses. But you're right, it won't, they'll just cut hours.
- Someone1234 7y agoIf they could cut hours or staff numbers they already would have done so.
- Pfhreak 7y agoOr raise prices, or accept less pay at the top.
- earlINmeyerkeg 7y ago>accept less pay at the top. For a second there I thought you we're being serious!
- deleted 7y ago[deleted]
- marcosdumay 7y agoWhen everybody raises prices at the same time, business survive.
- refurb 7y agoOnly if demand is entirely in elastic. You can be damn sure if the cost of mobile phones suddenly doubled, a lot fewer phones would be purchased and companies would go out of business.
- dlp211 7y agoOf course labor makes up a fraction of the total cost of a phone, so doubling your labor costs does not double the unit cost of a phone.
- refurb 7y agoMy comment was in response to “When everybody raises prices at the same time, business survive.” Which is clearly not true.
- marcosdumay 7y agoI was initially going to add something on demand elasticity... But it is not obvious at all how demand responds to global increases in salary. It tends to increase more often than decrease.