06-09-2016, 04:12 PM
(06-08-2016, 05:21 PM)fredtoast Wrote: If there are currently 5 million people working full time for minimum wage (a number someone else posted) then raising their pay from $7.50 an hour to $10 per hour would only increase national total income by 2 tenths of one percent.
It just is not going to make that much difference. Labor is only a percentage of total costs, and wages earned by minimum wage earners is only a very small percentage of labor costs.
Your not looking at wages on a National scale. You are looking at them on an individual company scale. Employee salaries and wages usually make up the single largest percentage of a company's expenses. If you increase wages 33%....and wages make up say 60% of a company's expenses...then they are going to raise their cost of goods sold to maintain their current profit margin.
