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In the arguments about raising the minimum wage, people are always saying that employers will cut staff if the government raises the minimum wage. I don't understand this argument.
In my hometown, restaurants, retail, services, etc. are already running at minimum staffing and customer service is suffering.
I go to a fast food restaurant and there is only one cashier with a line of twenty people. Once I make it through the line I wait for ten minutes for my food because there is only one person cooking.
The retail stores are at minimum staffing with one to help me find anything with only one register and a long line.
The full service restaurant is full of customers but we wait for 40 minutes for our food because they did not schedule enough cooks. There is no one at the front counter to sit people because they are helping in the back doing prep.
I could go on and on. If businesses want to keep their customers they need to hire more people, not cut them.
If they can't cut staff, they'll either raise prices, switch to cheaper ingredients, place a larger burden on existing staff or something along those lines if the increase is significant.
I know this is alien to many people, but when the cost of production/doing business goes up, it gets offset in the majority of cases.
It's the same people that don't get the concept of corporate taxes being passed on to the end consumers.
In the arguments about raising the minimum wage, people are always saying that employers will cut staff if the government raises the minimum wage. I don't understand this argument.
Depends on how it plays out, if you raise the minimum wage everyone else's wages need to necessarily increase to have the same buying power. If not they have less to spend at places like restaurants.
The other scenario is everyone's wages go up and the minimum wage worker is back at square one, there $15 can purchase the same McDoanld's meal they were paying $7.50 for.
Quote:
If businesses want to keep their customers they need to hire more people, not cut them.
Sounds like a golden business opportunity, have at it.
If they can't cut staff, they'll either raise prices, switch to cheaper ingredients, place a larger burden on existing staff or something along those lines if the increase is significant.
I know this is alien to many people, but when the cost of something goes up, it gets offset in the majority of cases.
They have already done all those things. Have you seen the prices at McDonalds recently? The quality of the ingredients is already down. The 20 minute wait for service at the single cash register and the long wait for the food is an indication that the existing staff could not handle the pressure, how can they service the customer if staffing is cut even further?
Yes, I know technology will help somewhat but that is a long term solution.
It will come....the prices on convenient, accurate, easy to use ordering-kiosks will eventually take the place on quiet a few employees.........and it will be very much a cost benefit to the companies using them.
Technology many times rolls-out in a 2 steps forward/1.5 steps back manner.
None of these will happen. The employer would cut into their own profit or even sell at a loss to satisfy the customers demand for lower price and employees demand for higher pay.
For a business to function, it MUST MAKE MONEY....you can't operate at a "loss" (unless you're the government, and that won't last long!) and expect to stay in business and keep employing people.
If a business is taking in only enough to pay their high-price employees...how do you pay the bills? How do you buy more product to sell? You HAVE TO MAKE MONEY....that's a fact!
I'm conservative and can't really disagree OP. Industry and business are ripping off employees and customers and in turn the government is ripping most businesses and everyone else off. That's not just low wage service sector but the whole gamut.
I am already starting to see self checkout registers at convenience stores. What is to keep fast food establishments from doing the same thing. It is cheaper to purchase, maintain and operate than to hire, provide benefits, pay Social Security benefits and provide training repeatedly to new employees. As it stands now, low wage employees are an endangered species. Go ahead and raise the minimum wage and see how quickly many of these jobs are automated.
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