If I'm a small business owner and minimum wage is increased....?

Question

I'm a small business owner and I need to hire 2 people for my business. In fact my business needs these 2 people to stay in business. I know I can afford to hire these 2 people at 6 dollars each. I hire 2 people who are high school drop outs and this is the only job they can find. They make the choice to work for me. I get the help I need and they get good experience for their resume. I expect them to use this job to aquire skills that will help them get a better paying job. In other words I expect them to use this job as a hand up. If minimum wage is increased to $7.00 I can only afford to hire one person. But I need 2 to run my business so I have to go out of business. Now I'm hurt because I no longer have a business and the two people I had employed are hurt because they no longer have a job. What do they do now? How is a minimum wage increase good for our country??

Answer 1

A minimum wage isn't good for the country. See my answer to a similar question (best answer) for why.

In summary, your analysis is exactly correct.

In the short-run, those low paid that are lucky will keep their jobs and get paid more, thus reducing inequality. Those who are unlucky will lose their jobs, thus increasing inequality. What your view is of the net effect will depend on which group of low paid workers you give greater importance to.

In the long-run, you also find that many people get a low paid job to gain employment skills so that they can work their way up and get a better paid job down the track. However, high minimum wages prevent people from the initial job when they are still low skilled and thus may never get the chance to improve their skills unless governments also provide them with increased free or low cost training opportunities.

Answer 2

minimum salary regulations at the instant are not sturdy for every person. It would not improve the cost of the artwork being achieved. Plus, the seen a minimum salary replaced into created in the process the submit civil conflict era as a thank you to maintain black artwork crews from undercutting the cost of white artwork crews. minimum salary regulations do no longer make experience. the upward thrust in pay basically gets exceeded directly to the patron inflicting inflation and putting the guy good back interior the comparable subject.

Answer 3

dont be cheap pay them more.!