Minimum Wage increase?

There is an article (click here) that you should read, that covers quite a bit of reality about the minimum wage. The article contains facts you should know.

So I make well above the minimum wage, and the whole thing shouldn’t affect me. Or should it?

I keep reading posts, and articles from people pushing for this increase. I don’t get it. I just don’t.

Do these people not understand the impact of what they are suggesting? Suppose a small business that currently employees 7 people at the $7.25 minimum has a budget for payroll of $100,000. Those 7 people at minimum wage, if they work full time, with no benefits, just their hourly wage, cost the employer $105,560. They are already over budget.

Now, raise the minimum wage to the demanded $15 an hour. That same scenario would cost $218,400. However, without raising the price of their product, the company still ahs the same $100,000 budget. So, what do they do? They keep the 3 best workers, at a cost of $93,600 and hope they can still keep things running. The other 4? They end up in the unemployment line, until unemployment runs out, then they go on welfare.

Why do they go on welfare instead of finding another job? Not because they are lazy, or untrained, but because they are not the only 4 people looking for work, the unemployment rate is going to sky-rocket because this same scenario is playing out all over the country.

The other option for employers is to raise the cost of goods and services to cover the new required wages. Payroll has more than doubled, so the cost of these goods or services is going to increase by a dramatic margin, maybe as much as 75 to 100%.

Now that $10 item you wanted? It costs $17 to $20. Your minimum wage check is not going any farther than it did before because even though you’re making twice as much, you’re now spending twice as much. Oh, but wait, all those folks on welfare? Guess what? The Feds need to raise your taxes to come up with the money to provide that welfare, so now, you’re tax rate just went from 10% to 15% (or more) meaning you have even less left over.

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