Business owners and the minimum wage.

mikevroman

     The minimum wage debate is in full swing again. Many of the leaders in the argument against it are business owners, and they are frequently demonized for this, even though they rightly maintain that they need to preserve their profit margin in order to stay in business. In this they are correct, however, most of them make a fundamental mistake in regards to their pay scale, for which they should be blamed as much as the minimum wage is. This mistake is to view their labor costs as a whole, and therefore wholly as an expense. This is the root of their basic mistake. This has, unfortunately, been fostered by the increases in the minimum wage at a faster pace than the market would sometimes bear, especially since the minimum wage is usually applied as a blanket rule rather than being tailored to a specific environment.

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