2007-03-12 15:58:03 · 6 answers · asked by kool aid 3 in Business & Finance ➔ Small Business
I believe that the min. wage increase will hurt small businesses and employees. Small business for the most will not be able to pay employees the higher wage increase and keep all employees and at their current hours. What will happen when you have to increse one person's wages, then you have to increase the other person's wages that is above them etc. Then employers have to pay more FUTA and SUTA, social security withholding along with worker's comp etc. So instead of being able to create more jobs and more pay, the min. wages increase will cause many employeers to cut back hours and employees. For really small businesses ( 10 employees or less) they will not be affected because they are not held to the same employment laws.
2007-03-12 16:05:28 · answer #1 · answered by Lauren1980 3 · 2⤊ 1⤋
A minimum wage increase, indeed a minimum wage at all, hurts everyone.
Here in Washington State, home of the nation's highest minimum wage, it goes up every Jan. 1st in a vain attempt to make the minimum wage a "living wage". Of course, this can never happen. Every Jan. 1, everyone raises prices to compensate, wiping out any gain. While some marginal businesses just close, wage compression is turning more and more people into minimum wage workers. Some have suggested that in 10 years, 75% of workers in Washington State will be working for minimum wage. Since this state has been controlled by the Democrats for nearly 30 years, I guess this is Nirvana, to them.
In addition, as the minimum wage increases, businesses are motivated to replace workers with an ever increasing amount of automation. Here in Washington State, self-service is everywhere, and not just at gas stations and banks. Hardware stores, grocery stores, even movie theaters are now self-serve/self-checkout. Where there used to be plenty of minimum wage jobs, now there are few.
So, for those of you pushing for a hike in the minimum wage, just remember, it comes with fewer jobs and higher prices.
2007-03-12 16:16:10 · answer #2 · answered by Jolly1 5 · 2⤊ 0⤋
It's going to cause a chain reaction. It will hurt those designed to help. It will push many who rent in subsidized housing out into the open rental market as many families will be over the income limit with even as little as a two dollar an hour raise.
The entire system has to be revamped not simply just raising the minimum hourly wage.
2007-03-12 16:06:37 · answer #3 · answered by thefinalresult 7 · 1⤊ 0⤋
Labor has been taking it on the chin in favor of business for over 20 years. I think our concerns should lie with labor for awhile.
2007-03-12 16:02:08 · answer #4 · answered by AZ123 4 · 0⤊ 1⤋
here in washington state our minimum is $7.93 per hour and they are certainly not going out of buisness.
2007-03-12 16:09:32 · answer #5 · answered by l l 5 · 0⤊ 1⤋
it will probably help them in the long run because people will be making more money, so they can buy more.
2007-03-12 16:01:30 · answer #6 · answered by speedy_me18 5 · 1⤊ 2⤋