Consequences await if wage is increased
OK, go ahead and raise the minimum wage 24 percent. But are you ready to:
• Pay more for your meals at fast-food restaurants? No more cups of coffee for 79 cents or hamburgers for $1.29. Restaurant owners have to pass additional costs on to us, the consumers. They can’t just eat these additional expenses. Also, additional wages means the business owners will have to pay more in payroll taxes and workers’ compensation insurance.
• See more unemployment? An increase in wage costs tends to see more business owners automating their processes, so they won’t need as many people.
• See less customer service people? If wages go up, the employers can’t afford to have as many people available to help when we call. We are already being put on hold for 10 minutes when we call many customer service phone numbers.
• See more of our jobs being exported to India, the Philippines, Malaysia or who knows where else?
So go ahead and raise the minimum wage, but get ready for the consequences.
Kenneth Weinstein, CPA