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Originally Posted by filtherton
Isn't there a lesson about the economics of running a profitable business here? If you can't afford to pay two employees $7 an hour each, than you probably shouldn't be in business. It is not kerry's fault that your friend has very small margins.
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There's a better lesson about the role of goverment and attitudes toward businesses in your note. It's not our place to say someone "probably shouldn't be in business" or the operating margin isn't large enough. Goverment shouldn't be running folks out of business with taxes and regulation; it hurts the employee, the employer and even the customers of a small business.
What is overlooked is that an increase in the minimum wage isn't paid by the employer, at least not in full. The cost of goods and services go up. Kerry is paying back the unions with this--union contracts are often tied to the minimum wage (X dollars above the current minimum wage).
But when I hear someone say "the minimum wage ought to be $7.00", I ask, "why not $8.00? why not $12.00?". No one is going to live well on $7.00, either. It's a training wage, an entry level salary, not one that someone should aspire to.