Hiking the minimum wage lowers opportunities for poor

submitted by Tomoko from dailynews.com

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[–]jet199 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

I think people are concentrating to much on how this effects individuals or companies. It's more on whether you want a low wage economy where most people are in some kind of work or a high wage economy where around 10% of people are unemployed at any given time and the rest pay higher taxes to fund that.

People find happiness in both kinds of society but no one's found a way to have the best of both yet.

[–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

It's more on whether you want a low wage economy where most people are in some kind of work or a high wage economy where around 10% of people are unemployed at any given time and the rest pay higher taxes to fund that.

It's already routine to run businesses on as small as a skeleton staff as possible in places that employ minimum workers. It's why calling in sick is so difficult in these jobs. You need a doctor's note and get a guilt trip since management now has to find someone to replace you, many just go into work sick.

There's something called a pay matrix. Employee wages are allocated to be the maximum of some % of income, or an income category. For example, some gas stations here use the profit from sales in their convenience stores for employee wages and the gas goes to profit. Since they cannot reduce the already bare bones work staff they'll have to adjust the numbers in the pay matrix.