On the health of the economy, that is

yeah that's what most studies I've found say

it's an imperfect way to help poor people for sure

but it is *a* way

if it were tied to inflation we might have more cause to deal with inflation quickly

Let’s do this in an accounting perspective, since I am qualified to be an accountant.
Total Revenue - Cost of Goods Sold = Gross Profit.
If revenues equal $500,000 per year
and costs of goods sold is $400,000
Then the gross profits are $100,000 in a year.
Let’s assume this made up company has only 10 employees making the wages of $7.25 per hour which = $150,800 per year out of the costs of goods sold which means the rest of the costs would be $249,200. This is a realistic scenario. However, if the minimum wages increase to $15 per hour as proposed and the owner gladly keeps his employees he would be then paying $312,000 per year for all 10 employees and increasing his costs to $561,200 which would put his company at a gross loss of -$61,200 per year. Therefore any claim that “min wage increases have generally little effect” on a small company is a blatant lie made by ignorant people. There is absolutely Zero studies that can disprove simple math and finances. Companies need to adjust to these wage increases to survive by increasing prices or paying off workers (at the very least reduce overhead). It’s common sense.

@wahx @Leo (BillNyeLand)

Then it sounds like it’s a company that can’t afford to pay its employees a living wage and shouldn’t exist

On a separate note I’d support legislation that lowers taxes when the ratio of least payed to most payed is is close to 1

Also you’re thinking of a micro situation and applying it to macro situation

That’s actually a high end situation since most businesses don’t make a profit of $100,000 a year

But saying a once successful company shouldn’t exist because they got hit with an unexpected expenditure is pretty harsh especially coming from a liberal.

That’s especially not something any entrepreneur is going to want to hear. Just that statement alone cost you about 25 million votes.

Not an unexpected expenditure, the requirement to pay a living wage

That’s ok I’m not running for public office

Well yeah most small business fail, of course most don’t get to 100,000

But I didn’t say it was a high end situation, I said it was a micro situation

Define micro situation

That’s not a common term

Also living wages fluctuate per person. That’s a subjective statement.

And also why would a business be entirely reliant on paying all of its employees minimum wage

A business dependent on paying all of its workers minimum wage just to stay afloat probably wouldn’t survive long anyways

With or without a wage hike

hi visitor

have you taken any formal economic classes

im assuming you're in high school so maybe like ap macro/micro?

well one of the things that you learn when you begin studying economics is what minimum wage does to buisnesses

minimum wage is a price floor, which means that businesses can't go below it
firms try to operate at an equilibrium point at least right, so they're not losing money
when the price floor is put, legislation puts it above this equilibrium causing the business to undergo losses if they maintain current production
so they fire workers, increase production whatever to cut losses

ideally a business should not have to do this because it ends up hurting the market even if people are being paid more as seen above^

@hcaez why isn’t Mom back from the store

she'll be back soon

a good example is walmart

Yes Walmart is a store

Walmart makes 480 in revenue, awesome, but they have 465 in costs

Thank you Kanye, very cool!

so their profit is 15 billion

people may say "WOW 15 BILLION WHY DOESNT WALMART INCREASES WAGES"

sure they could, but Walmart has other things to do besides that

Retarded niggas be like “why don’t I get more money for pushing buttons on a cash register”

Amazon and Target are not sitting still, it's a competition they're all constantly improving so that means if Walmart wants to stay running they need to do R&D

opening new stores and new logistics also costs money