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That assumes that a business would be willing to rage quit. It either needs employees, or it doesn't. How many businesses do you think are carrying an excess of

That assumes that a business would be willing to rage quit. It either needs employees, or it doesn't. How many businesses do you think are carrying an excess of employees at the moment just because the wages are cheap? How many are supplying customers who woulld no longer decide they want the product/service because a small percentage of the total cost of delivery has increased my a relatively small amount, increasing prices very slightly? It is only those jobs that can be offshored at little or no (overall) cost that would be affected, barring ideology-over-sense zealots out to prove a point.

crapshoot101 14y ago
No, it assumes that in a flexible labor environment in the medium term, a business will adjust to the value of the worker. If the minimum wage goes up to $20 tomorrow, I may not let go of a lot of my temp employees today, but I will certainly do so in time. This isn't rocket science - this is economics 101. And I say this as someone who supports a gradual rise in the minimum wage (ie, a legislative solution that would link it to the CPI seems like the best way to take it out out of the hands of future legislators who want to play politics) - but the idea that there is no cost to increasing the minimum wage is silly. Also, the "small percent of the total cost of delivery" is is a red herring; labor cost as a portion of total delivery cost varies greatly according to industry. To use a silly example, if the minimum wage was increased to $30 tomorrow, you don't think McDonald's starts firing employees?
pixl97 14y ago
>How many businesses do you think are carrying an excess of employees at the moment just because the wages are cheap? More then you think. Increased insurance costs has done more to get rid of excess employees then minimum wage will. >It is only those jobs that can be offshored No, not only. Now that costs increase it makes more sense for the employer to take a harder look at replacing parts of the employment chain with software or automation. Where at one point employes kept people around for their flexibility it tips more in favor of machines (software or hardware) for there efficiency.

crapshoot101 14y ago

No, it assumes that in a flexible labor environment in the medium term, a business will adjust to the value of the worker. If the minimum wage goes up to $20 tomorrow, I may not let go of a lot of my temp employees today, but I will certainly do so in time. This isn't rocket science - this is economics 101. And I say this as someone who supports a gradual rise in the minimum wage (ie, a legislative solution that would link it to the CPI seems like the best way to take it out out of the hands of future legislators who want to play politics) - but the idea that there is no cost to increasing the minimum wage is silly. Also, the "small percent of the total cost of delivery" is is a red herring; labor cost as a portion of total delivery cost varies greatly according to industry. To use a silly example, if the minimum wage was increased to $30 tomorrow, you don't think McDonald's starts firing employees?

pixl97 14y ago

>How many businesses do you think are carrying an excess of employees at the moment just because the wages are cheap? More then you think. Increased insurance costs has done more to get rid of excess employees then minimum wage will. >It is only those jobs that can be offshored No, not only. Now that costs increase it makes more sense for the employer to take a harder look at replacing parts of the employment chain with software or automation. Where at one point employes kept people around for their flexibility it tips more in favor of machines (software or hardware) for there efficiency.