Increasing the minimum wage primarily reduces profits: https://warwick.ac.uk/fac/soc/economics/staff/mdraca/minwage_profits.pdf https://warwick.ac.uk/fac/soc/ec

Increasing the minimum wage primarily reduces profits: https://warwick.ac.uk/fac/soc/economics/staff/mdraca/minwage_profits.pdf https://warwick.ac.uk/fac/soc/economics/staff/mdraca/minwage... >In general the economy balances out so ROI is the same everywhere so profits only decrease temporarily The only industry where is is "true" is small restaurants, where profit margin get hit short term but stay steady at 10% over the long term. This is because real restaurant profits are mostly consumed by their landlords, and it's their landlords who suck up the difference long term. This doesn't apply to big corporate restaurants like McDonalds because they have pricing power and often are their own landlords. Even so the SME restaurant industry hates the idea of raising the minimum wage more than most because it tends to lead to a wave of restaurant bankruptcies until rents adjust.