Faun
Diamond Member
- Nov 14, 2011
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Yes it would. But you're not smart enough to understand it.
Joe and I are BOTH a lot smarter than you or Staph.
So why don't you give it a try? How does a small increase in wages for a very small amount of workers (2.8%) bring about the Armageddon you right wingers claim it will?
Won't you be able to afford fries with your burger if the MacDonald s worker was getting 8 bucks minimum? That is where the minimum wage workers are most concentrated, fast food. Right? And cheap retail stores. Would the cheap Chinese shit you buy at Walmarts cost a little more? Probably not.
It will be ok if poor working people make a little bit more. Really.
Don't flatter yourself.
Who mentioned Armageddon?
Consider a community based pizza parlor selling 100 pies a day for 360 days at $10 each. Total revenue is $360,000. It employs 10 minimum wage workers earning $7 per hour, working 2000 hours a year, making labor costs $140,000. Assume rent, utilities, equipment, depreciation, insurance, supplies, licenses, and food costs come to $170,000 per year, leaving a profit of $50,000 for the owner and his/her family. Raising the minimum wage $1 would raise labor costs by $20,000 (paying more for the same amount of labor) and reduce profit to $30,000. The owner must either move into a smaller house or raise prices, which reduces the demand for pizza, resulting in the loss of a worker. So, the full increase in the wage cost of an increase in the minimum wage comes out of the pockets of customers or the owners family, and the one person who loses a job.
Why Raising The Minimum Wage Kills Jobs
Or he can just raise the price of a pizza $0.56 to cover the cost. It still puts more money into the economy by giving employees an extra dollar per hour.