posted on Jun, 8 2012 @ 10:41 AM
Here is the other elephant in the room. If corporations that pay minimum wages are forced to spend more on pay, what is to stop them from sending yet
again, more jobs overseas?
I am self-employed. I run a business from my home, and I can tell you that ANY time the cost of doing business goes up, I have to adjust something
else in my budget. Unless my sales go up, it will bring down my profit. I have to seriously consider raising prices, because that way I can at least
keep my profits where they were. I don't want to raise my prices, it makes me less able to compete in my market. Now, all the materials I buy will
go up in price to compensate for the additional amount they will have to pay in wages too. I can't just raise prices to reflect the extra spending in
wages, I also have to raise prices to reflect in increase in raw materials that I will have to pay, and if I had employess, my payroll tax will go up
because that is calculated on gross wages. The percentage does not go up just in relation to the wage increase, it ends up being more than the wage
increase. You might think that my sales would increase due to the public having more money in their pocket, but again, they are just spending that
extra$ on things they already buy, so, do they really have more buying power? No. Minimum wage sets prices, and can't go back once the increase is
made. It appears to me, it fixes the prices at a certain level they can't go back. Do you decrease your spending when prices go up, even if you get
a small raise?
I don't have employees, but I do have to buy raw materials, gas, electricity, etc. These will go up in relation to increased wages. I can't afford
to raise my prices right now, my business is still new, and I don't have a longstanding reputation yet. I will take a hit. How many new business
owners are in this position? Who is the real winner here? The people who go from making $7 to $10 an hour, have more money in their pocket, but watch
the money disappear when everything they buy goes up in relation to the extra $ they earn? Not them. The Government, who like the poster before me
said, gets more money in taxes from their interest-free loans (taxes)? Or the current administration who is campaigning heavily this year and is
pandering to people who make minimum wage. Looks pretty clear who the winners are, and it is not you and me, the small business owner.