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It's not that simple. Higher labor costs is good for corporations because they can afford it, while it wipes out their competition. Small businesses don't have
by throwkeep 5y ago
It's not that simple. Higher labor costs is good for corporations because they can afford it, while it wipes out their competition. Small businesses don't have the benefits of scale and are already in survival mode.
Also, increased labor costs necessarily means higher prices for goods. Which affects the poor more than the rich. Does it matter to the rich if a gallon of milk or gas goes up 2x? No, they won't even notice. But the poor sure will.
- rStar 5y agoeverything in this society is good for corporations because they own the politicians and write all of the laws. so it’s a competition between corporations who all want to pay below a living wage. in this case the employees are rational actors waiting for what they consider value. corporations can either not have employees, pay their employees what it costs to get them to walk in the door in the morning, or declare war on humanity and search out the least self respecting people on the planet to be wage slaves on their race to the bottom.
- mijamo 5y agoI don't think that's true. Small business usually have less salaries because there is no corporate overhead and a big part of the staff is the owners who are not paid through salaries but dividends. Also small business often pay more than big corporation for low level jobs because they cannot afford the same turnover, and salary increases tend to be proportionally higher for the very lowest salaries than those just above (you go from 10 to 12 for instance, but only from 12 to 14 which is relatively smaller increase).