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Originally Posted by Manx
A living wage does nothing but shift the burden of financing work from me and you to the corporations that reap the profits from the work.
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Actually, I am the same as the corporations you so detest.
My partner and I are in the middle of a start-up company. Our workload is increasing fairly heavily and we will probably need to higher lower-paid workers to cover the brainless part of our jobs that take our time away from the more profitable parts. Then, as the workload increases even more, we will probably have to higher more skilled workers.
In other words, I can only afford to pay so much per hour. I justify bringing in a new worker by comparing the work that they will do with the value that work has. If I have to pay the person more than the value of the job, what do you think I will do? Answer, not hire. It would be more profitable for me to continue to increase the hours I am working than to pay a new hire more than the position is worth.
The rule of thumb is that I will continue hiring until the additional cost associated with hiring the last worker is equal to the revenue generated by that worker. Now, if the "cost per worker" is higher, do I buy more labor or less? Answer: Less. If the "cost per worker is higher" do I buy more or less labor? Answer: More.