Yeah, ok, so even if you are stuck in the feel-goodness of raising the minimum wage by a paltry amount thinking that it might actually help people rise from poverty (in other words, if you live in a make-believe fairyland where you think all we have to do is make someone else pay more and you won't have to see homeless people begging at that red light you always get stuck at) certainly you must understand that employers are not forced to only pay the minimum wage, right? Surely you realize that the legions of burger-flippers and toilet scrubbers have the potential to make above the minimum wage if their employers feel they are worth it, right?
"Any minimum wage increase will significantly affect the bottom line," said Bruce Josten of the U.S. Chamber of Commerce, one of the nation's leading business groups.
"This bill completely ignores that fact, and as a result small businesses may be forced to eliminate jobs, reduce hours, and cut employee benefits," Josten said.
But Wal-Mart Stores Inc., the world's biggest retailer, reiterated its support for an increase, saying it would help working families.
OK, Wal-Mart, knock yourself out. Pay higher than minimum wage for those 16 year old clerks you've got working there after school. Mr. Josten specifically said "small businesses" and Wal-Mart certainly does not qualify. And if Mr. Josten is correct, and small businesses suffer, this law only promotes big corporations with deep pockets at the expense of small, hometown businesses.
Situation: Ms. Single-Mom with no car works during school hours for the Mom N Pop Diner in rural Small Town for $6/hr. Mom N Pop has 6 or 7 employees who share the 30 man-hours per day (they're only open for breakfast and lunch) 6 days per week. Suddenly, Mom N Pop have to cough up $1/hr more for every man-hour: that is $1/hr times 30 hr/day times 6 days/week times 4 weeks/month which equals $720/month. Mom N Pop's business loan for the diner and equipment is $800/month (they've been in business for 22 years at that location, so the mortgage is pretty low...good thing, too since net profits barely cover their personal grocery bill).
Mom N Pop is forced to close their doors (they tried selling, but nobody was fool enough to buy it). Small Town has precious few businesses because everyone drives 20 minutes away to Slightly Bigger Small Town which actually has a mall (woo hoo, 28 stores!). Alas Ms. Single-Mom has no car because she only makes $6/hr and couldn't afford gas or insurance if someone gave her a car. So Mom N Pop have no business (and hence, no income) and Ms. Single-Mom has no job. And the local old folks have nowhere to gather on weekday mornings for a cheap cuppa and a few rounds of Euchre.
But McDonald's over in Slightly Bigger Small Town is thriving. And this is progress?
If you see some fallacies in my scenario, please point them out. But do so only if you or someone you know has attempted to run a small business in a small town or if you have actually yourself lived in a rural small town or if you are a single-mom making minimum wage working for a small business or if you are a small town business owner.