I have never run a business.......does that give you leeway to not address the points I make?
would also say that is an hourly rate and business could hire part time to save a little, and generally I believe these minimum wage proposals do come with certain exemptions for waiters/waitresses etc.
I have addressed the points you have made hundreds of times over the years. I get tired of explaining business 101 to people who think that the hourly wage of employes are some kind of arbitrary number assigned by greedy business owners.
In order to bring a commodity or service to the market place, a business incurs costs. These costs are offset by the prices they charge for their goods or services. With Me so far?
These goods or services cannot just be charged any amount the business owner wants. This is because the consumer of the business product will only pay a certain amount for any good or service. There comes a point at which the consumer can go elsewhere for a better 'bargain' on the exact same product or service.
This means that the business must keep costs below the maximum income realized. This translates to analysis of what each aspect of the business costs money. This means the lease/rent/mortgage must be paid. The electricity and heating must be paid for. The taxes, city/local/state/federal must be paid (often ahead of any other expenditure). Suppliers of raw goods (if you produce something) must be paid. Then there is labor.
If the cost for such items such as furniture, electricity, mortgage, taxes are a set cost, that can be planned for. If I produce something, like a widget, then the costs for the materials fluctuate based upon supplier and I have to account for that fluctuation. This means that I have, I absolutely HAVE to place a cushion in my bottom line to account for spikes in costs to materials. This leaves labor.
In order for worker X to produce a widget, it takes a specific amount of work. This work is calculated over a period of time. Lets say its over time period of one hour. Lets also say that I have just the one production employee.
This employee must produce 10 widgets per hour at X number of dollars per widget, just to pay for his own wages. But wait! I have other employees in other departments. This means that their wages must also be paid. So, this production worker must now produce 300 widgets per hour just so that my business can break even. That is a fixed wage. However, an employees output is not a fixed number. Some days, the employee only produces 2000 units per day, where I need him or her to produce 2400. Some days, he or she produces 2600 per day. When all is said and done, it averages out to 2400 per day based upon an analysis I did on productivity.
This provides everyone wages, plus some overhead and expansion cushion for the business. This cushion eventually translates into more demand for My widget, at which time, I can now hire another employee....
And so the cycle goes....
If the government comes along and demands that I pay that employee twice what it costs My business to produce, then one of three things are going to have to happen. The employees are going to have to double their output, or one of the employees is going to lose his or her job, or I am going to pass the cost along to the consumer. If I do that last thing, I may lose business because consumers won't pay a higher price, and then I end up losing an employee anyway.
In any case, the arbitrary assignment of a higher minimum wage will cost the country economic activity in lost sales, lost production and lost wages.
A free labor market is a much better way to set wages than a forced theft by government.
This is, of course, a very simplified version of what actually goes on. I don't have years to write out business scenarios for an Internet forum discussion.