Friday, August 29, 2008

Minimum Wage Increase

OK, let me just say this right away, any increase in the minimum wage is a good thing.

Granted, obviously, that the cost to run the business has now increased which cuts into profits and could force smaller businesses to cut back on hiring and/or go out of business.
I hear this argument every time the minimum wage increases. I can not believe nobody sees right thru this argument.
1. If the business is going out of business over spending 80 cents or less more per hour per minimum wage employee then this business will fail with or without the increase. Come on...that would mean that nobody could ever get a raise. So, the skilled worker making more than minimum could not get a typical annual raise? Money is money. costs are cost.
2. Any company that relies on minimum wage employees over skilled employees will fail anyway. Minimum wage is not a living wage. The minimum wage employee will naturally never develop any sense of ownership on the job, but instead be looking for higher paying opportunities.
There could be more to say, but really...gonna stop here.

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