Quote:
Originally Posted by Millburn
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Could you explain to me how raising minimum wage eliminates low skill labor opportunities? I'm not an economist and don't understand how those correlate. What I do know is that with the affordable health care act, all part time workers in low skill jobs will not be getting more than 25 hours a week. There needs to be some change in wages or this will be another nail in the coffin of our work force.
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Best to give an example. Guy owns a restaurant. He finds if he hires one person, he can improve business, makes $20 more dollars/hour with the first hire. With the next hire, he makes $10 more dollars an hour. He's going to keep hiring people until the net benefit from hiring a new person = cost to employ said person. Someones productivity and their pay are directly correlated. So, essentially someone who is worth $10/hour will get $10/hour. If you raise minimum wage to $15/hour, the manager/owner isn't gonna just bite the bullet and lose money on an employee, that person is going to get fired. Also, the owner will make less money, and fewer people will be able to enjoy his goods, and likely the cost of these services will increase.