What if minimum wage legislation actually hurts the people it's intended to help?

Question

So you want to raise the minimum wage.  Why not mandate low prices for food, shelter, and everything else. Unfortunately all these ideas are equally foolish for a number of reasons, not the least of which is that it will hurt the people you want to help.

The formula for any particular business to be successful is complex and requires great flexibility, which is why most new businesses fail in the first year. Do you really think a few bureaucrats in Washington can fiddle with the formula for a successful business and not cause serious repercussions? It’s hard enough to build a successful business without Congress reducing our freedom and telling us to do it with one arm tied behind our backs while jumping up and down on one foot.

In the following blog entry I illustrate using a scenario involving the fictional ACME Doorbell Company why setting a minimum wage is an incredibly ignorant idea.

http://pseudorandommusings.blogspot.com/2007/01/minimum-wage-legislation-is-misguided.htm

tropical · Accepted Answer

I've known business owners who've laid workers off because of a minimum wage hike.

They have a certain amount for wages on their balance sheet, and when wages exceed the budget, something has to be cut.

The business owners I'm talking about have decided to cut the number of employees, rather than cut employee benefits.

deacon · Answer

You are telling the same lie that carpetbaggers have been telling since the Civil War. You are a liar and under the control of Satan and the devil. 
I am an Accountant and Econ. Degrees individual, graduating from University in June of 1969. Your lies are intended to enslave the middle class and working poor and suck every dime that you can out of them and then hope that they die the day they are no longer able to work a full day of hard labor so they will not be a drain on your money barrel. 
God is writing down every thought, word and deed. You are in the depths of hell and blind to that fact.
I will ask everyone that I know to Pray for you and all that are in bondage to this lie.

 1 John 2:22 - Who is a liar but he that denieth that Jesus is the Christ? He is antichrist, that denieth the Father and the Son.

charlie_the_carpenter · Answer

Minimum wage is only a benchmark. It's a feel good issue designed to rally the ignorant. I've been personally trying to find an adult that actually only makes the minimum wage and have come up empty handed. Anybody?...........

The Big Box · Answer

Blogs are not proof. Despite what you think, all research over the past 70 years has proven you wrong- it only helps. people keep saying that it hurts small businesses, but all economic studies have shown is the exact opposite.  When the workers have more money on the bottom, economic growth increases. Yup. it generates MORE revenue for the business, not less. And with more, the companies can afford to pay their workers more or even hire more.

BekindtoAnimals22 · Answer

The minimum wage has been raised many times.  It has not caused anybody any undue difficulties.  If it has, nobody found it to be news worthy.

andy c · Answer

it will. it will raise prices for one, and it will hurt the poorest. this is just feel good crap from the dems to get more votes and they have a vested interest in keeping people poor.

aulona37 · Answer

Big possibility.What happens if it so high, employees get fired. That will not help.

Parrot Bay · Answer

Minimum wage has not been raised since like the 70's. It is raising much slower than the rate of inflation I don't see your point sorry.

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What if minimum wage legislation actually hurts the people it's intended to help?

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