- Jul 22, 2016
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/——-/ Well Hell’s Bells. You’ve convinced me now. Let’s make MW $90 an hour so every burger flipper can live in Palm Springs.You just simply against MW.
I'm against it because it's bad economics.
Well...... so far all I heard is an opinion of bad here and there. I asked a very simple question. MW increase has started about 5 years ago here and there. So I’m asking the same question again.
Name me any enterprise any business categories any McDonald’s that went out business because of MW increase?
Please ANYBODY.
Minimum wage impacts businesses differently.
McDonald's sells 1000 hamburgers a day, 1200 french fires, 1600 beverages. But Bob at Bob's hardware doesn't sell 400 boxes of nails or screws every day. So you won't see any noticeable price increases at McDonald's, but you will at Bob's.
***1. If your employer gives you a dollar an hour raise, it costs your employer more than that dollar because of associated expenses. A huge increase like nearly doubling it would drive people out of business because of that reason.
***2... The worst part is that a huge minimum wage increase causes a domino effect. If you got out of high school and got a job at a manufacturer of some sort, and started out at $9.00 an hour, eventually you will make $15.00 an hour in a couple of years. All of a sudden, you find yourself back at minimum wage because of some Democrat politicians. Are you going to continue doing your job at minimum wage? Of course not. You are going to demand to be paid at least five bucks an hour over minimum. Okay, fine. But then what about the guy at your shop who's been there much longer and is making $20.00 an hour?
When it comes to a full circle, the minimum wage worker finds himself in the exact same position he was in before the hike because now everything else costs more. The only people that made out were the politicians because now you are getting taxed at a higher rate. That's the only reason they are behind it.
Agree. However.
1. McDonald’s can make up the difference easily.
2. Business like Bobs hardware as your example will always raise prices. Most or all businesses raise prices every year. That’s a fact. Even restaurants.
3. Businesses give regular increases to their employees. That’s a fact.
***1.. So far I have not seen that. That is why I asked the same question over and over. Name me one establishment that went out of business because of this MW increase?
***2. That’s just an opinion from anti minimum wage. I repeat the same question.
The sad part with all these arguments is. There are tons of companies that give starting salaries over $15/ hour. Even a high school graduate.
My minimum lowest entry level is $16+ hour.
I already pointed out how McDonald's will make up the difference, and that is a "slight' price increase on each of the thousands of items they sell a day. Bob can't do that.
Pricewise, Bob is already at a disadvantage with places like Home Depot, Lowes, and the internet. About 15 years ago one of our local hardware stores announced they were closing down. I spoke with the owner who placed the cause on a new Home Depot that opened up about ten miles away from his store. Lost for the future, he was questioning me about a career in trucking.
It was a wonderful store. Family owned and operated. They were even open all day Sunday.
At the time, I was making a delivery to a local company where I knew some of the workers from the area. One of them approached me about the closing of the hardware store, and how terrible it was. With that comment, I asked him "out of the last five times you purchased hardware, where did you go, to our local hardware store or Home Depot?" He bowed his head and said "Home Depot." I responded by saying "That's why he's closing up!"
So now Bob not only has to be competitive with super stores and the internet, he now has to deal with a huge minimum wage increase on top of that. How can he raise his prices anymore than he already has without putting himself out of business?
Thanks To The Fight For $15 Minimum Wage, Small Businesses Close And Employees Are Laid Off
Sorry to hear about Bob.
Home Depot, Costco, Walmart killed lots and lots of small businesses LOOOOOONG before MW increases even in the 80s.
So there’s no way you can blame MW Increases.
That’s the same happening overseas.