Why raise the minimum wage? Just ask Costco...
Tina Miller, MA,CFLE stashed this in p2
Stashed in: Costco
This is an excerpt from The Responsible Entrepreneur: Four Game-Changing Archetypes for Founders, Leaders, and Impact Investors by Carol Sanford (© copyright 2014. Reprinted with permission from Wiley/Jossey-Bass.Businesses use social systems, especially economic systems, to influence how society works – usually, though not always, for their own self-interest. Sometimes this influence can be extremely destructive. For example, one socially codified means for determining fair wages is the minimum wage. As a rule, businesses react powerfully and as a group whenever there is any mention of raising the mandatory minimum wage. They claim that this will undermine their ability to do business and produce severe economic consequences due to layoffs and reduced hours. The social effect has been the establishment of a permanent underclass of workers who can never generate enough income to adequately provide for their families
I don't understand the reasoning.
Raising the minimum wage raises the prices of the goods they sell, right?
And raising prices means customers buy less, right?
Private-based wage schedules have nothing to do with government mandated minimum wagers. Private-based minimum wagers make good business sense in some cases. Government mandated minimum wages come with a whole overhead of welfare-based expenses as the wage schedule is forced into benefits calculations.
It always bugs me how people try to mix up the two, aka pointing to private industry to try and conflate a government action.