Obama to increase minimum wage to 9 dollars.

Discussion in 'Politics' started by Josh Jones, Feb 13, 2013.

  1. Well if this happens I'm losing my job, I work at a small business, they already had to decrease hours to part time for all but 1 of the employees because of obamacare and in preparation for tax increases. $9 an hour for everyone means that were going out of business.
     

  2. I'll probably be with you on the losing your job part. I'm already working part time though.
     
  3. Why stop at 9 bucks an hour? How about 20 bucks an hour?
     
  4. Go for it! We can feel rich using our currency as toilet paper :p
     
  5. Raising the minimum wage right now is a bad idea, companies would have to start laying people off cause they couldnt afford the new minimum wage.
     

  6. Exactly. Minimum wage laws is a contributing factor as to why jobs here are diminishing.

     
  7. Large corps like walmart will have no problem absorbing the increased expense.

    it's the small business and the customers that they serve that will be hurt by it.
     
  8. Yeah, and they're going to lay people off.
     

  9. Small businesses should budget in contingency costs the same way as any large corporation.
     

  10. Are you fucking serious? Do you know how many small businesses are barely recovering the costs of doing business now? There's no extra money for them to set aside for contingency costs.
     

  11. Not planning for contingency costs is a very big reason why a lot of small businesses fail.

    It's not like you "set money aside" for contingency costs. It's a line item in your budget and (as part of your overall costs) determines the rates/prices you charge to your customers or clients.

    I'm not saying that a huge minimum wage increase is not going to hurt small businesses, but the minimum wage is a variable cost, and should be treated as such by any competent accountant/business owner.
     
  12. Why do you the aaopartmenrs are that much?

    You don't think minimum wage increases it.

    Higher minimum wage means more expensive everything.
     
  13. Minimum wage laws don't raise the cost of living, they just cause unemployment. Cost of living increases are a result of monetary inflation, not wage floors.
     
  14. #34 yurigadaisukida, Feb 13, 2013
    Last edited by a moderator: Feb 13, 2013
    This is not true

    Ever wonderwshy wallmart has 50 registers but only 3 cashiers?

    Right because small buisness owners have extra money just lying around

    Most of the things they need contingency money for are government intervention

    Things.like oh say a minimum wage increase. Damn shoulda had a.contingency for.labor cost increase!
     
  15. #35 AugustWest, Feb 13, 2013
    Last edited by a moderator: Feb 13, 2013
    it's easier and makes more sense to just pass the cost on to the consumer.

    you can't just budget in a potential min wage increase that may or may not happen. I doubt the neighborhood pizza guy that's been there for 20 years is doing this.

    when costs go up, you pass the buck on to the consumer whether it's price of goods, labor, or tax increases..
     
  16. [quote name='"AW"']

    Large corps like walmart will have no problem absorbing the increased expense.

    it's the small business and the customers that they serve that will be hurt by it.[/quote]

    thats what i meant, obviously the big corporations, it won't affect them much, but the small, and local companies it could hurt
     
  17. it is true..

    ever wonder why walmart lobbies Washington to increase the minimum wage?
    if they wanted to pay their people more, they'd just do so without trying to force smaller businesses (who can't afford the increases) to do the same.

    the walmart CEO says it's because "he doesn't want to see his customers living paycheck to paycheck".. i personally think he's full of shit.

    http://money.cnn.com/2005/10/25/news/fortune500/walmart_wage/
     
  18. [ame=http://www.youtube.com/watch?v=x4o-TeMHys0]The Rent Is Too Damn High Party's Jimmy McMillan at the NY Governor Debate - YouTube[/ame]
     
  19. Interesting

    The plot thickens
     
  20. Econ 101:

    An effective price floor causes a surplus. In the case of the labor market, a surplus means unemployment.

    [​IMG]


    The space between the blue and red vertical lines are unemployed people.

    Edit: Notice that the higher you move the price floor, the greater the surplus (unemployment) gets.


    [​IMG]
     

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