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Originally Posted by willravel
The income of the company. I don't know why you are making this seem so complicated. Company X has 4 levels of employees. Level 1 is the bottom level worker comprised of 40 people that do manual labor and makes minimum wage (about $10k a year). Level 2 is local managment comprised of 12 people that makes about $15 per hour (about $25k a year). Level 3 is the board of 4 people who makes about $70k a year. Level 4 is the CEO who makes about $750k a year. Is something wrong with this picture?
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So all companies look like the one you just described? didn't know that. What about the company without a CEO? What about the guy who runs his own consulting business? Him and his wife are the only employees. They want to hire someone as an office assistant but can only afford to pay $20,000/yr. They put out an add in the paper and someone replies. They want the job and they seem to be ok with the compensation since they responded to the add and accepted the job. Everyone wins.
But if there's a mandated minimum wage that has to be "livable" and that wage is equal to $30,000/yr our consultant can no longer afford to hire and pay for an office assistant. So this assistant still doesn't have a job and this consultant doesn't have an office assistant. Too bad the gov't decided what he
had to pay.
Or how about the restaurant owner who pockets $60,000 a year. Employs a staff of 30. The managers make $11/hr, cooks make $8-10, while the busboys, dishwashers, and wait staff all make minimum wage (bus boys and wait staff get tips).
But you, and other people in favor of increasing the minimum wage don't think he should be paying his employees what he does. according to you, not one of his employees is making enough. So after the law is passed he goes out of business because he can't afford to operate his restaurant with any less staff, but he can't afford $750,000 annual payroll expenses either. So he closes his doors.
I could go on and on. Not all businesses are like the one you described. Like I said before. Its real easy to talk about a livable minimum wage, especially when you forget about the average business owner.
Look at your local franchise gas station. Do you think the owner of the stop-n-go on the corner is living the high life? do you think he could afford tripleing his payroll expenses? Those are the people you hurt when you mandate such things.