- Posted September 2, 2013 by
This iReport is part of an assignment:
What Wall Street isn't saying about Minimum Wage Hike
Here is why that's basically stupid. Small businesses fair enough cannot afford to take that hit, but their corporate partner can and should. The argument that their stock price would take a hit is moronic at best. Here is what they are neglecting to mention. It would be universal and wide ranging implementation of the minimum wage, thus ALL industries and competitors would feel the same pinch thus they'd all take a percentage identical cut in profits. The price wouldn't drop. For example, the minimum wage went from $5.15 to $6.75 and McDonald's nearly doubled their stock price. Minimum wage from from $6.75 to $7.25 and their stock price went from $50 to $90.
If the minimum wage raise was forced by Federal law to be subsidized by corporations to the small businesses, basically take the difference from the royalties, the price of stock wouldn't be effected at all. The small business owner would be business as usual. The only difference is total earnings for each quarter would be short, but again that'd be industry wide which investors would obviously be awaiting thus not surprised by, and we are talking missing by a small amount.
If the prices raise on the product, it's corporate thievery. I keep hearing people say stupid things like "if you want to get paid more, get a better job." That's all fine and good except then there wouldn't be people doing these jobs and then what happens? The jobs exist for a reason, demand. If your solution is don't fill the jobs where there is demand, you clearly don't understand basic business. There is demand, and the people filling that demand should be compensated fairly. It's truly not too far from the situation we had with US Steel back with Carnegie.
If these big corporations don't make concessions, unions will start again and history shall repeat itself.