Not going to get an argument from me on that. I understand the idea behind a "living wage," but never thought selling burgers at Mickie D's was a career move worth dedicating your post-teenage years life to.Consider this Ray.....If a corporation closes its doors because of NO sales or business, its emplyees are still out of work.
There has to be a compromise because without one, there can not be the other. It is and always has been a two way street.
Allow me to give you an example. If and or when the government mandates a $15.00 minimum wage, the company or business will lose employees, or does not financially help those people who own business, they will close.
Why. There P & L is based on sales with ebit always being the bottom line. A grocery store operates on a projected ebit of approx. 5%.
A drug store like Walgreens operates on about a 15% ebit.
Now when the expense of payroll increases by 46% ($7.00 increased to $15.00) a business has only TWO ways to absorbed that expence.
1. Raise prices.
2. CUT PAYROLL.
Most business can not in any case increase prices by 46%. It is just not possible to do.
That means if an employer has 10 employees today and the increases begin tomorrow, tomorrow…..4 people are now unemployed.
On the other hand, it is kind of embarrassing that we are 12th in he world on minimum wages. No one is doing $15.00, but many are doing >$10.00: