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Joined 1 year ago
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Cake day: June 13th, 2023

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  • The argument is that raising wages would cost business owners too much. They would need to close up shop rather than pay higher wages, and then the workers aren’t making anything.

    And there is some truth to that, unfortunately. Almost half of all private sector employees work for a small business. If small business labor costs doubled overnight, most could not absorb the additional expense and survive. You’d see a lot of places go belly up, and either nothing would replace them or large corporations that were able to absorb the labor costs would take over and raise prices to maintain their margin. A higher minimum wage just strengthens the position of the companies with enough capital to survive the change.

    I agree that wages need to increase, but it’s a lot more complicated than just the government saying, “Hey! Pay them more!”