On May 3, 2014 at 10:29, mcn779 said...
Big Papa if everyone is given that raise which is only fair the people on the bottom are still on the bottom.
That's a classic non sequitur.
If it's not fair who deserves the raises and who doesn't? Suddenly that person that's been there for 2 or 3 years making 10/12 bucks an hour are making less than some one just hired?
You do realize the proposed increased happens over a period of time and not all at once, don't you? Which allows time for businesses to address this very issue.
Also who can business keep making a profit at the same prices with that kind of increase in labor costs? You shouldn't need any studies to see this.
Yes, nobody needs studies to understand this. Employees will be paid more, so they cost more, so businesses will need to change their prices or take less profit, or both. The understanding of this is not the problem, the mindset that the holy profit is somehow threatened is the problem. And the irrational fear that if you raise prices you lose business, therefore no raising of prices.
Which is irrational. You may be able to raise prices to cover the increased costs of the minimum wage going up without significantly raising the cost of your finished product. Studies abound looking at cost impacts of raising employee wages:
Raise to $10.50 minimum wage = cost is less than 3% of net sales for a McDonald's franchise. So yes, more $ for employees, will need to raise your prices. For a McDonald's franchise, 3% would cover it.
Now if all those people making 30k a year got a 30% raise over a few years but had to pay 3% more for their burgers with fries, do they come out ahead?
You don't need a study to understand that math.
