Tuesday, March 22, 2016

Small Business In HV Buys Into Rhetoric Of Corporate Shills

This is our editor's response to a recent article which appeared on HVNN, with a link to and excerpts from their original piece:

Business Council Opposes $15 Minimum Wage

The respondents employ from 10 to more than 100 employees representing 30 different industries and organizations.

Among the key conclusions of those who expressed opposition to the $15 wage:

    97% said it would decrease their hiring from youth workforce development programs.

First, it's sad but true that there are adults who need those jobs much more in many instances. Yet somehow society has come to this false notion that certain jobs are simply "meant for kids" to go out and buy video games or something, rather than saving for college even. Secondly, if a youth really does need that job in order to support themselves or to help support their families, they deserve a living wage as much as any other worker. You might be surprised how many youths are out there today, on their own, trying to get by at 16 or 17 years old. So let's not base this decision on age discrimination.

    91% would likely or definitely hire fewer employees.

This is always one of the big threats whenever there is talk of wage increases, but it is actually a hallmark of bad business leadership, and empty rhetoric. If it takes, let's say five people, to operate a shift at your store, that's how many people you have to have per shift. No more, no less. No one hires workers they don't need. Business isn't charity. You aren't going to go out and hire a bunch of people to stand around.

    47% said it would somewhat or significantly drive up wages for other employees.

I don't see this as a problem at a time in our nation's history where wages have never been lower for the majority of blue collar workers. Driving up wages is the entire point here.

    46% would likely or definitely curtail expansion plans.

Expansion plans are not based on what you pay an hourly worker, but rather demand for your product in the market place. Less money in the pockets of working class means less demand for goods and services. If you want to expand your business, that can only be done by creating market liquidity. In other words, paying the working class better wages, in order to create demand and to support expanded business.

    42% would likely or definitely reduce employee benefits to make up for the increase.

Benefits? Who has benefits anymore? Even the very few places that do offer them, offer them at some ridiculous amount like a quarter of your salary with a $5k deductible.
   37% said it would likely or definitely cause layoffs.

You can't lay off workers you that you need to make your business operate. We have already established that business is not a charity, and no reasonable business owner hires workers they don't need. Again, if it takes five people to operate a shift in your store, it takes five people, simple as that. Sure, you could try to make the other four people work harder, and create a disgruntled staff in the process to the point that they go out of their way to actually sabotage your business. It's a "cut off your nose to spite your face" approach. It will only degrade the quality of the goods you are producing and the service you provide to your customers, sending buyers elsewhere, to businesses where workers are happier, and business owners are wiser.

    15% said they would need to close their businesses.

Don't blame the working class for your failed business model. It doesn't matter what someone does for a living, or who they are, no one should ever be paid any less than what is needed for basic survival without need for public assistance. Don't expect taxpayers to subsidize the labor costs for your failed business model.