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Well, it seems many people's logic about small businesses disagrees with your example about customers at or slightly above minimum wage. With the "if Wal-Mart r
by talmand 12y ago
Well, it seems many people's logic about small businesses disagrees with your example about customers at or slightly above minimum wage. With the "if Wal-Mart raised their prices then small shops could compete better" kind of thing. Not that I'm saying your wrong or anything, just pointing out obvious problems with such examples. My own included.
How do you know there would be a 15% to 25% increase in costs in the supply chain? Could it be more? Could it be less? Would it be possible that with a minimum wage hike that the individual costs for some parts of the supply chain the rise in costs could be much higher? Depends on the businesses involved. Meaning, what's good for one business is not necessarily good for every business.
What if a store has to raise their prices not by 35%, but more like 60% because of increased costs from their supply chain. That figure seems to only assume the prices are raised only to cover increased wage costs, and not considering new costs across the board. But hey, they still come out ahead right? What about taxes? Anybody getting this new increase in pay going to get hit with more taxes? I never see any of these articles discuss that aspect of it at all.
I'm sorry, but your logic seems overly simplified because it would seem to support the notion that since raising the minimum wage is good for everybody then why not just raise it to $50 an hour or $100 an hour? The original essay argues against that because it's a complicated issue.