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small businesses don't foot the bill, at least not to any painful level if they're anything approaching a reasonably run business. their customers might, and ha
by clairity 6y ago
small businesses don't foot the bill, at least not to any painful level if they're anything approaching a reasonably run business. their customers might, and having it be a blanket policy means that small businesses are not disadvantaged or penalized for not having the leverage of big businesses to distribute costs onto the rest of society (e.g., walmart and welfare).
at most, on the margin, a small business might give employees 1-2 fewer hours per week. that actually puts selective pressure on small businesses to be more efficient, and therefore more competitive with big business.
this also counters the other oft-cited rebuttal that people will lose jobs due to the minimum wage - no, they may lose an hour or two on the margin, but whole swaths of jobs aren't at stake, and their take-home will likely stay roughly the same even with fewer hours per week.
economic lag isn't particularly relevant either, because folks making minimum wage turn around immediately and spend that money. there's virtually no lag there.
- HPsquared 6y agoOnly a small portion of the increase in wages would find its way back to local businesses. Rents will increase for example, as people will have more money to bid up the prices.
- clairity 6y agoalthough rents do tend to absorb surpluses in our plutocratic form of capitalism, landlords are still largely local and rental markets fragmented (although those are changing with the financializing of real estate), so that money still tends to circulate locally. a small portion does get captured as wealth by landlords, which doesn’t tend to circulate locally.