LogFAQs > #946763516

blax34dm posted...

I don't know anyone who thinks that. But people do think if you raised minimum wage 7$ it will make a certain level of worker impossible to hire.

In very simple terms, if 2 workers will bring in 17.50$ of revenue and 3 workers will bring in 25$ of revenue, you can hire 3 and pay each worker 7$ and collect 4$ profit--which is better than hiring 2 workers and collecting $3.50 profit.

But what if minimum wage is 8$? Now 3 workers cost 24$ meaning only 1$ of profit. 2 workers will cost 16$ meaning 1.50$ profit. So you will of course go with 2 workers and fire/never hire #3 who is likely new to/re-entering the workforce.

This might be what people are trying to explain.

Yes, the basis behind that line of thinking is that profits for the company must always be maximized at the expense of providing a decent wage for workers. If people who run massive corporations were willing to take a small pay cut or--god forbid--not expect massive growth every year and be satisfied with stable revenue, then it would be easy to pay everyone a lot of money. But we don't live in a society that values economic stability. We value growth. Only growth. Become as rich as possible no matter the cost.

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\\[T]// Praise the Sun