Billy000
Democratic Socialist
- Nov 10, 2011
- 32,038
- 12,798
- Thread starter
- #141
There probably would be some initial job loss, but as Tyrone's graph pointed out earlier in this thread, job growth over time is greater in places with higher minimum wages. This is because of an increase in consumer demand. Also, I don't suspect all of those jobs were lost solely because of the wage hike.They don't raise wages themselves because the raise would have to be something widespread to have an actual economic benefit for everyone. Unless their employees only shopped at the business they worked at, it wouldn't make any sense.Lol if we raised the federal minimum wage we wouldn't have the problem of mom and pop shops setting up in certain areas. If you want me to find a link for this I will, but a survey found that 3 out of 5 small businesses support raising the minimum wage to 10.10 per hour. Why? Because it means more consumer spending. Consumer spending is the driving force of the economy. The number 1 reason small businesses go under is because of a lack of demand. Raising the minimum wage alleviates that problem. Now granted 15 per hour is pretty ambitious, but again it matters how it is done. If it is raised gradually over a few years it gives the market time to respond.Again the rise in prices would not offset the extra money per month a person would be making. Something at McDonald's will go up 10 cents while the person with a higher wage could afford more items on the menu regardless. Everyone else especially would be making enough money to not care if that Big Mac went up a dime.
This is true because the increase in wages is spread out through hundreds if not thousands of items McDonald's sells every day. It has more impact on mom and pop shops like hardware stores, flower shops, ice cream shops, lawnmower shops, lawn care companies and startup businesses.
You are a business owner and want to open up another operation. You narrowed it down to two choices: one is a city that has a $15.00 minimum wage. The other uses the federal standard of $7.50 or whatever it is today. Which city do you think you would choose?
What is the first thing a city does to attract a business that are considering their city to start a new or existing company? They offer tax exemptions.
That begs the question: if most small businesses are for increasing minimum wage, why don't they increase wages themselves without government?
Plus I think you're looking at this too myopically. When you increase wages, you increase all other costs as well such as the employers matching SS contributions, their matching of Medicare contributions. From what my employer told me, the more you pay an employee, the more the employer has to pay for unemployment and workman's compensation insurance as well.
So I don't understand why mom and pop would be all for this. Of course we know why Democrats are for it. They can't wait for all that extra taxation that would happen when people earn more money.,
Increasing minimum wage doesn't make sense either:
REPORT: Seattle Wage Hike Off To ‘Pretty Bad Start,’ Kills 700 Jobs
3:20 PM 10/24/2015
Read more: REPORT: Seattle Wage Hike Off To ‘Pretty Bad Start,’ Kills 700 Jobs