Why you don't set the minimum wage to $70K

[RolloTheGreat]

Actually, boosting the minimum wage wouldn't increase prices at all.  Money isn't magically created and driving inflation when the employees get more money, since that money that used to go to the owner is just going to the employees instead.

SC, would I be correct in guessing you don't own a business or act as a financial officer for one?

Imagine if you were a sub shop owner and making $100K a year off your sub shop, paying five people $10/hour.

Well and good, a family can live on $100K a year so you buy a decent house, a nice car, and start taking nice vacations.

Then the minimum wage changes and goes up to $15/hour, and additional $200/week per employee. That's $52,000 a year knocking your gross down to $48K. Still more than the $30K the sandwich assemblers make, but (pay attention here) no family on Earth used to living on $100K a year would go back to $48K without doing whatever is humanly possible to avoid it.

No way no how not happening.

Whatever you make you spend, and it's REALLY easy to spend $100K these days. Going back to $48K would be like getting bombed back to the stone ages for that family. They would lose their home, their cars, their lifestyle.

Christmas for that guy's kids gets radically different, helping kids with college now out of the question. Hope they like making Rollo's ham and cheese for lunch.

So a bunch of things that add up to that $52K a year happen at the sub shop.

One less slice of ham per sandwich, or a cheaper brand of ham.

Less staff on site doing the same work. Maybe one guy gets laid off, rest have to pick up his work.

Maybe what benefits exist get cut. Instead of high deductible health care none is offered, owner pays the ACA tax instead. 401K match gets cut. Sick/vacation time cut.

Sandwiches price goes up a little. Christmas party cancelled.

As a person who apparently believes he can make the rich pay, hear this and think about it:

The rich/owners are the LAST people to pay, because they get paid first and they decide what expenses are.

Think I'm lying?

Are wages stagnant or declining? Are jobs being exported to wherever labor is cheapest? Are companies known for paying taxes or avoiding them? Who's paying for Obamacare? Rich guys? Or is it raised costs to all of us, coverage people don't need forced into their policies, and forcing the young who don't really need health insurance to buy it because they'll use it less?


Starting to get it? The only guy who doesn't pay is the guy who has a choice in the matter.