Close Shop already

Everytime there is talk of providing higher wages in some form, be it through an increased minimum wage or a change in healthcare laws or any other measure that would put more money in the pockets of (some) employees, sure enough somebody butts in and goes on about how there will be a million billion unemployed people because of that.

To those I say, close shop already. If you think you are better off as an employee rather than an employer sell your assets and get the best job you can get with your marketable skills.

Costs have been increasing across the board for the past, forever years and they will continue to do so and there will be winners and losers in the world of buisness. If you cant cope as a business owner pursue alternatives, but stop telling the country that people is about the only thing that may not increase in cost without Armageddon happening.

reply to post by Cassius666


That is the end game isn't it? Smother out the little guy until we all work for a handful of huge corporations. No need for innovation or creativity or pioneering spirit, just maintain the status quo and everyone can get their little piece of the comfort pie without too much stress.

I think you're saying exactly what "they" want you to say.

reply to post by getreadyalready


And it will all happen because work costs more? Seriously? Those big corporations cant turn a profit either if everybody barely earns enough money to make ends meet, so dont worry about that. Everyone is in the same boat to a point.

reply to post by Cassius666


Not true.

The regulatory, licensing, and taxing policies on a large corporation are a lot more relaxed. A small business requires a lot more licenses and a lot more regulation, and they typically cannot take advantage of the tax loopholes. The larger corporation is exempt from many of the same regulations, and they can afford to "shelter" their income in many ways.

The unseen costs for a small business are enormous. Things like unemployment insurance, and workers comp insurance percentages are many magnitudes higher than what a corporation pay.

This issue came up recently at a meeting I was in for work, when we realized the legislature had created a law that would cost thousands of dollars per year to small businesses, and create a much more difficult time complying with the regulations in the law, but they specifically wrote in an exemption for large corporations with a certain amount of assets. Thereby creating a playing field that fosters the large corp and drives out the little guy.

Lets not forget about "too big to fail" and ease of available credit, and grant money that also favor the large businesses over the small.

If you want to go out and start mowing lawns here in my town, you will need 4 licenses plus additional DOT registration, plus Liability Insurance, and if you have more than 1 helper, you will need Workers Comp insurance, and you will set off many triggers that will get you audited for sales tax, immigration, hazardous waste disposal, transportation of hazardous materials, operating a business out of a home, income tax, etc., etc. You will get almost daily calls from government officials for the first 2 years you are in business.

Anytime you raise the minimum wage it is hard on small business. Alot of those owners do not have magnitudes of cash on had to simply absorb the costs immediately. The only a way minimum wage increase can work with any positive effect is to tie it to the rate of inflation. And then once you do that you will need to grant a waiver on it to small business for a short period to give them time while wages reset to realistic levels and proportions to keep from outright crushing them. But even once you have done that there are other economic issues that have to be dealt with like fair trade over free trade. As long as it is viable for business to offshore jobs they will continue to do so. Which is another burden on small business.

There are many of these owners out there that want to be the company that does well by it's employees. And many that would gladly be the made in the USA store. And right now they would have customers in droves, but the reality is with wages having stagnated so long and competition with cheap labor markets for goods they have to resort to what keeps their doors open. It is all an inter-tangled and complex mess that only one solution isn't going to work. Fixing the bottom is a good place to start, but you can't half ass it anymore and you have to address all the other factors soon after or you have done it for nothing.

Originally posted by KeliOnyx
Anytime you raise the minimum wage it is hard on small business. Alot of those owners do not have magnitudes of cash on had to simply absorb the costs immediately.

If a buisness is on the brink like that, an increase of anything can push it over the edge or some other hiccup.

reply to post by Cassius666


Most small business is run on narrow margins. Hate to burst your bubble on that one. They can't afford to have many errors,unproductive workers or a dramatic rise in any cost labor included. But there are also a number of ways to ease he burden of raising the minimum wage for them so that they have time to adjust to it. You can also create tax incentives for those that voluntarily pay above it.

But please don't come in here stupid enough to not know that small business has to compete with large business. And large business has every possible advantage including a tax system designed to keep small business small through large business lobbying the government.

OP, I think you have to look at this differently. Let's say a small business has 50 employees that make $9 and hour. Now lets say that they increase the minimum wage to $10.

50 employees x $1 x 40 hours a week = $2000 a week increase in cost to the employer.

To many small business employers $2k is a make or break deal.

Also, let's say that you work for a small business that is owned by a Republican. There are many out there and I happen to work for one myself. Now if they are scared to death of Obamacare...they may hold out for a ruling on Obamacare before deciding to hire, expand or offer health benefits of any kind.

Right now at my place of employment we are considering a large expansion that would create more business, create an opportunity to hire many more people and we have not been able to do so just because they fear Obamacare will cause more cost to my employer than they are willing to take on.

So I think that your premise may be a bit short-sighted when you consider the actual numbers behind minimum wage and healthcare.