Not knowing the particularsabout your family business, i will tell you ive run a million dollar retail operation. I know how to read a P&L, i understand payroll is the biggest controllable expense any retail business has. You don't hire people just to hire them, they have to justify their salary. Im glad your old man could pay better than minimum wage, but im betting he didnt hire a kid fresh from flipping burgers for more than minimum wage to sell high end jewelry. He got people that knew something about the business so he wouldnt have to waste the resources traing someone that may or may not work out.
Im not ignorant about business. I'd dare say i'm someone that can speak more intelligently on the subject than many. With employees, it's all about ROI (return on investement). If they cant make you money, then you dont keep them...if your profit margins thin, you dont hire more people unless you HAVE to. Raising the min wage is not the start of the apocalypse...but judging by early reports from walmart and target, people miss that chunk of change the government started taking from their checks again. Lower sales wont mean more jobs anytime soon, so the rise in the minimum wage wont really help many people that arent already working at minimum wage.
For the record, the most money i made as a salesman was on commission....min. wage + spiffs and bonuses. I cleaned house because i knew how to hustle and take care of my customers. If i was paid minum wage and nothing else, how motivated would i be to make money? Its always about WIIFM...Whats In It For Me
Fat, drunk and stupid is no way to go through life
a) If you can afford to pay someone new $8/hour (on a 40-hour week) but not $10/hour than your business is not profitable in the first place and maybe should not hire anybody period.
b) If that business is so profitable yet can't afford the $40/week difference maybe ownership should look at cost cutting somewhere else (lining their own pockets)
This minimum wage debate remains me of the 'Joe the plumber' moments with a lot of made-up BS excuses.
"You may think that you are some kind of god to these people. But we both know what you really are."
"What's that? A criminal?"
"Worse. A politician."
Source: Under The Dome
So write-offs are revenue neutral? If you write-off $1000 do you save $1000 on your taxes?
“I’m somewhat disappointed that more African Americans don’t think for themselves and just go with whatever they’re supposed to say and think."
- Dr. Benjamin Carson
Employers have an additional cost of an average of approx 25% - 30%. It largely depends on what kind of benefits they have and/or offer. So you are looking at roughly $50 more per dollar pay raise. If our resident 'Joe the Plumber' is actually offering any benefits. Without any benefit plan the extra cost are somewhere around 10-15% (depending on State and your UI rate). My point stands: if you can't afford a couple hundred dollars extra you may want to rethink your business strategy.
This whole "increase of the minimum wage is killing jobs or job growth" is the same crap as "if we tax our job creators a couple percent more it will kill jobs, reduces investment etc".
---------- Post added at 11:38 PM ---------- Previous post was at 11:37 PM ----------