Minimum Wage Hype...

 

 

 

We've all heard small business owners whine about a proposed increase in the minimum wage.  Whine, whine, whine!

 

Several years ago, a friend of mine owned a small business.  He, his wife, and two part time minimum wage young people supplied the retail sales for the store.  On the horizon, a twenty-five cent an hour minimum wage increase was being proposed.  He and his wife ran around town like chicken little, crying that if their store survived at all, at the very least, prices would have to go up significantly.  Being a believer in fair wages, I sat down at my computer and zeroed-in on just how destructive this was going to be.  His two part timers were averaging 1000 hours per year.  One thousand hours times two part timers equals two thousand hours, times $.25 per hour equals $500 for the year.

 

My friend and his wife spilled more coffee than that!

 

Along with part time and below poverty level living, a worker quickly develops an attitude of poor company and employer loyalty.  They see no need to show pride in their work and they will be constantly looking for a better paying job. Absenteeism is high, and frustrated employees produce constant turnover for the company.

 

When we talk to someone who works in a store and actually makes a living wage, most of them are proud of the company.  That attitude is contagious and it makes us want to do business there.  Fairly-paid employees will come to work happy and display improved productivity.  The employer can experience much lower turnover, as well.

 

Many employers fight minimum wage increases with untruthful and deceptive arguments, threatening all consumers that their merchandise pricing will have to increase.

 

Instead, they should be looking at the benefits of happy, satisfied employees making a decent living and staying around for awhile.