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this post was submitted on 19 Dec 2023
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The argument is that raising wages would cost business owners too much. They would need to close up shop rather than pay higher wages, and then the workers aren't making anything.
And there is some truth to that, unfortunately. Almost half of all private sector employees work for a small business. If small business labor costs doubled overnight, most could not absorb the additional expense and survive. You'd see a lot of places go belly up, and either nothing would replace them or large corporations that were able to absorb the labor costs would take over and raise prices to maintain their margin. A higher minimum wage just strengthens the position of the companies with enough capital to survive the change.
I agree that wages need to increase, but it's a lot more complicated than just the government saying, "Hey! Pay them more!"
Then don’t do that. Every such minimum wage hike I looked at the details of phases it in over multiple years. I was by no means comprehensive, but it’s a logical compromise
Most successful Small Businesses already pay above Minimum Wage enough that an increase would only effect Corporate. But also by your Logic Competition shouldn't exist because it would cause Small Businesses to shutter since they couldn't weather the storm. Please have more faith in your local businesses and for Heaven's Sake buy from them!
Almost no small businesses pay minimum wage, though.
Right now, discussions about minimum wage are generally meaningless, because such a small portion of Americans makes minimum wage.
This is neither an argument for or against minimum wage, either. It's just that minimum wage doesn't really have the impact it's touted to have.