David Houston, who co-owns the Barney’s Beanery bar and restaurant chain in Los Angeles, explains that raising California’s minimum wage to $9.25 “would just squeeze the heck out of us” and that “it would effectively absorb about half of my profits.”
Melvin Sickler, a businessman who “went all in financially” to start his first Auntie Anne’s pretzel franchise, estimates that raising the minimum wage to $10 per hour could swallow nearly 60% of an average location’s income.
Should these businessmen cut employee hours, cancel plans for growth and expansion, or absorb the blow themselves?
The debate over raising the minimum wage is in part a debate over whether entrepreneurs should be forced to shoulder even greater burdens. By not seriously considering what the minimum wage demands from such business people, we are treating them not as human beings with rights, but as pack animals that must obediently carry whatever additional weight is piled on their backs. Their judgment, their career dreams, their lives — why don’t these matter?
Friday, June 21, 2013
The forgotten man of the minimum-wage debate
A great way to ensure poverty. Something the US seems to be get better and better at.