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For many small businesses, increasing the minimum wage would increase the cost of their employees but not increase the income of their customers. These business
by overgryphon 12y ago
For many small businesses, increasing the minimum wage would increase the cost of their employees but not increase the income of their customers. These businesses would see an increase in expenses but none of the benefits of a consumer base with more disposable income.
Walmart wants a higher minimum wage because their consumer base includes minimum wage employees.
- gerbal 12y ago54% of the US workers make less than $30,000 a year [1]. at a $14.50 minimum wage, the income floor for a full time employee becomes $30,000. You're telling me that a substantial income increase for >50% of the US working population would be bad for small businesses? [1] http://www.census.gov/hhes/www/cpstables/032011/perinc/new01_001.htm http://www.census.gov/hhes/www/cpstables/032011/perinc/new01...
- derekp7 12y agoIt would be bad for small businesses who have a significant cost of labor, and who's customers are larger businesses.
- talmand 12y agoNot saying it "would" be bad, saying it "could" be bad. Most of these articles rarely speak of potential negative consequences but only of potential positive results. That's the point of my first post. It's not a bad idea to openly discuss potential negative consequences which most proponents of a minimum wage hike seem to do their best to avoid. For instance, you are assuming that such an increase would only involve that 50% of the country. I'm assuming that such an increase would affect nearly everybody across the board, something more like 80%. That's not necessarily a good thing. But it could be a good thing, it's just that it's rare for a discussion to take place.