tag:blogger.com,1999:blog-287610628561863361.post8514358174877759988..comments2016-02-15T21:23:44.158-06:00Comments on From the State House: Put your money where your mouth is: Take the $5 Minimum Wage ChallengeDarrio Meltonhttp://www.blogger.com/profile/15617053624132940030noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-287610628561863361.post-25793104159622713722015-03-16T14:45:34.624-05:002015-03-16T14:45:34.624-05:00In this business model, is there any chance that t...In this business model, is there any chance that the increase in purchasing power for those workers would yield higher sales for the business, thus driving up the margin for profit? The wage expenses don't exist in a vacuum--consumer purchasing has an impact, too.Darrio Meltonhttps://www.blogger.com/profile/15617053624132940030noreply@blogger.comtag:blogger.com,1999:blog-287610628561863361.post-67804769712840382942015-03-16T14:38:21.762-05:002015-03-16T14:38:21.762-05:00Let's look at someone who has 10 full time emp...Let's look at someone who has 10 full time employees on minimum wage and makes a 5% profit, which some would love to get 5%, on $1,000,000 of sales at the end of the year. Every dollar of minimum wage increase is an increased cost of $430 dollars per week in labor and taxes. Thats $22,360 increased per year with ZERO increase in profit because all you did was make labor more expensive. So the $50,000 profit just turned into a $27,640 profit. That cuts the owner's return in half, and that's just from a single dollar raise. Another dollar would virtually eliminate ALL profit.<br /><br />The only way this person keeps those 10 jobs and the business in the community is to make their product/service more expensive. If everything that we buy gets more expensive, then what did you accomplish by raising the wage?JColemanhttps://www.blogger.com/profile/01900690819785150243noreply@blogger.com