The Benefits Of Increasing The Minimum Wage Could Be Many
For example, assume that there is a fast food restaurant which employs 15 people at close to minimum wage, or close to $7.25 per hour. Now, let's say that the minimum wage is increased to $10.00 per hour. This is an increase of $2.75 per hour per employee and an increase of $41.25 per hour for the payroll. This increase is equivalent to adding over 5 employees to the payroll at the original wage of $7.25 per hour.
To account for such a change, the owner of the company would have several options.
- One, the owner could increase the cost of the product, but this is unlikely, since there is a definite limit to how much someone would pay for a quarter pound burger.
- Two, the owner could let 5 employees go, but this would leave the restaurant understaffed.
- Three, the owner could tap into some of the profit of the company, but this is, also, unlikely because the profit is much smaller than some people might think.
- Four, the owner could close the business, which is the most likely since none of the other options are feasible.
The results would be very beneficial for several reasons even though this business would be closing.
- One, it would go a long way to addressing the problem with obesity in the country if people did not have fattening fast food as an option.
- Two, youngsters who had been working at the company would spend more time at home or school doing their homework or in other academic endeavors and hence would be making themselves better students and ultimately better and more valuable employees.
- Three, the parents of these youngsters would have to work harder and smarter to justify an increase in their pay so that they could take up the slack left by the loss of the child's income, which would lead to better and more efficient companies.
Posted by Head Scratchers of America Who Are Trying to Find Logic in Liberal Economic Concepts.
We are still scratching our heads.
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