Heres a little economic lesson for those who think raising the minimum wage from $7.25 to $10.10 is a good or fair idea. If an employer has 10 employees making $7.25/hr, the cost of the labor is $72.50/hr. If the company makes $100/hr on their product it nets $27.50/hr on that labor (typically this is unskilled labor). Raising the companies cost of labor to $101.00/hr causes a net loss of $1.00. Now, do you think the company can just raise their prices or cut elsewhere to make up this difference? Do you think the owners are going to take a pay cut or lower their standard of living? No. Instead, they will fire the weakest employees to bring their labor cost down and force the others to work harder and faster. Raising the minimum wage is hurtful to the lowest worker on the totem pole, bad for the economy and bad policy. However, forcing more people onto food stamps and government assistance is the real goal of this administration and those in Congress supporting this effort. youtu.be/Ct1Moeaa-W8
Posted on: Thu, 21 Nov 2013 12:35:22 +0000
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