Will $15 Minimum Wage Increase Job Loss
Increasing the minimum wage to $15 is “a terrible idea” and it gives technology an advantage over people. Technology is already taking away jobs, What you ought to do is make it easier to hire people.
All businesses like to pay entry-level people $15 per hour and raise everyone else’s wages as well. It’s just not feasible!
Many economists worry minimum wage increases tend to reduce employment, hurting less educated workers the most.
In the long run, low income families will continue to pay the price for job loss and underemployment.
Many small businesses struggle to stay open, labor is their major cost, taking up more than two-thirds of total costs. If you raise the minimum wage drastically, they have to lay off people or raise prices to stay in business. and many will end up closing the business.
Automation of the industries will accelerate with increase in minimum wage.
Is there an alternative approach ??
Minimum wage laws are not the perfect means of reducing poverty and in-equality. They’re difficult to fully enforce, and do little for underpaid workers in the middle of the income distribution.
Direct government subsidies of workers living expenses is a better idea. Universal basic income, single-payer health care, or social housing would likely do much more to improve economically insecure American’s lives.
Small Business Viability
Restaurants business will no longer be viable if labor costs rise above 30 percent of revenue, and restaurants can’t just jack up prices and pass the additional cost along to customers.
There are real limits to what people will pay at the local restaurant, and they can charge only so much for everything, before the customers will start looking at other dining options.
The only outcome of $15 per hour wage increase will be automation and outsourcing.
None of this suggests that the crisis of low wages for workers isn’t serious, but there is no easy way out, raising the minimum wage to $15 alone won’t solve it.
Price has amazing impact on the bottom line of small business.