Minimum Wage article just Fascist Propoaganda?

Question

I saw this article about the effect of an increased minimum wage in Arizona (state law, not the federal thing). SUPPOSEDLY, this article says that business owners are "claiming" that they are having to cut back on "jobs" expecially for high school "kids". I thought Raising minimum wage wouldn't of caused unemployment, so this article is lying right? Did the oil industry pay them off?

http://tinyurl.com/2uzwou

Answer 1

No Kevin, the oil industry didn't pay "them" off. Why should they? It doesn't even make sense. Very simply put, every business owner operates on a profit margin. This is the difference between what the business takes in as sales, minus what it costs to operate. For many businesses, this can be less than 10%.

If you thought raising the minimum wage wouldn't effect jobs, you're simply wrong. Part of the cost of doing business is wages paid to employes. If that figure is increased by increasing the minimum wage, it means a corrresponding decrease in profit margin. To compensate for this, the business owner has two options, either raise prices, or cut back on salaries and the number of employees. If his competition is stiff, he can't afford to raise prices. That only leaves the other option... layoffs.

And your question about the oil companies makes no sense. If the oil companies began paying states or business owners to compensate for an increase in minimum wages, it would have the opposite effect. Business would be able to maintain their profit margins due to the influx of oil money. And ask yourself this, Why would the oil companies, who themselves must maintain their profit margins for their stockholders, just give money away? It makes no sense!!

Answer 2

Raising minimum wage WILL cause unemployment. If a store cannot afford to pay more than a certain salary for 10 employees, then you raise that wage by $1/hour, then you will most likely lose 20% of your staff, since now 8 people take the same wage as 10 people used to. Now, you have added unemployment.

Also, is it fair if someone is making say $5 an hour, and someone else is making $6 an hour, and the law changes stating that the minimum wage goes to $6. Will the $6 an hour person get a wage increase? Nope. And the evil cycle starts...

Minimum wage was never meant to be a wage that people were able to live off of. It was made to give a minimum wage to pay people such as highschool kids who would otherwise be exploited for lack of knowledge in the real world.

Answer 3

Well you don't expect the business owner to take a cut into his profits do you?? Why do you think they pay minimum wage for in the first place?? More money for them. No the oil industry has nothing to do with it.

Answer 4

if the current cost of living in an area is not high enough to justify wages increases, then business owners will have to make cut backs.

I don't know about being paid off, but it is likely that the paper is, in fact, reporting a biased opinion. Simply put: politicians don't want people to move away because they lost their jobs, so if the wages were increased its because it was determined that the economy can support it.

Answer 5

I think, any employer that claims that increasing the wages will cause him to go broken, means that he's already broken.