RSSI’m relatively agnostic about the minimum wage rate, mostly because I am just not smart enough to weigh all the variables.
Knowing this, I find it fascinating that others can prop up one potential upside to increasing the minimum wage, such as “it will increase purchasing power,” but then completely ignore the potential problems for small employers.
There is no doubt that a hefty wage increase would have little effect on large restaurant chains, or smaller establishments that already have a hefty profit margin. But there are also a great many businesses that are operating a much lower profit.
I would venture to guess that MOST employers do not reflect the greedy Capitalist mentality that is assumed by the zealots arguing for the obviousness of the wage hike solution.
If I remember correctly, Santa Monica’s high minimum wage was selective – only covering the areas crawling with vacationers, and did not include very small businesses. Even so, the law was eventually overturned.
Why would a 20% loss in profits NOT be a source of problems for an employer? How do you know the employer’s profit isn’t low to begin with? It is a mistake to confuse high corporate profits with the profits of very small businesses. Ask the all the really small business owners in your town if they could easily withstand a 20% decrease in profits.