http://money.cnn.com/gallery/smallbusiness/2014/01/27/minimum-wage/index.html?iid=SF_E_River
This article discusses how a minimum wage increase would impact small businesses. It tells the story of a doctor who has several minimum wage patients that often don't have enough to pay for their medical needs. She allows them to pay with food or services, but if there was a minimum wage increase, they would be able to pay with money, thus stimulating the economy.
It is interesting to see the perspective of a small business person, since much of the argument in favor of not raising minimum wage is that it would be detrimental for small businesses.
This is an interesting take on the effect of raising the minimum wage. However for most small business owners it would make it more difficult to afford solid employees. For many entrepreneurs salaries are a large expense that is about to get larger.
ReplyDeleteIncreasing the minimum wage, to a margin, can be beneficial for small businesses. If wages do not adjust for inflation by being increased, then over time, people will not be able to afford the goods and services that small businesses offer. When this happens, people buy a lot less, and small businesses suffer due to lack of sales. Therefore, it is sometimes necessary to increase the minimum wage, because there will always be millions of people dependent on the purchasing power of that wage. While most Americans are not on the minimum wage, there are millions of people who need this money to purchase goods and services.
ReplyDeleteThis is very interesting. I don't believe that most doctors would allow the trading of food for their medical services. I don't think that someone paying their doctor with food exactly stimulates the economy. I think that raising the minimum wage would be beneficial for employees, but not for employers as it costs them more to find good help. I do agree that millions of people in this country need the PP associated with a certain wage.
ReplyDeleteI feel as if the minimum wage is something that has two consequences. These can be divided into short term and long term. In the short term i feel as if the economic consequences may be negative as business account for increased costs by laying off workers. In the long run, increased disposable income given to these workers is going to be pumped back into the economy and may lead to benefits in an economic sense. An interesting issue that can be examined is Connecticuts increase to the minimum wage. Only time will tell if increasing the minimum wage is beneficial in the long run.
ReplyDeleteI think this article was a very interesting way to look at the increase of the minimum wage. I really liked looking at the different perspectives of small businesses. I'm not sure if this would help things...it seems to be if the minimum wage were increased we would experience more unemployment, but I agree with Sarim...would this be ok in the long run?
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