Originally
posted by
martian:
labor is not a large % of COGS for most areas where most minimum wage workers work so the impact to them would be minimal. Industries where a high portion of COGS is labor tend not to pay their workers minimum wage (this has nothing to do with laws, just the nature of the industry and the relative supply of skills required).
You guys keep asserting this, but this is generally only true for huge businesses. Small businesses, which make up a majority of the workforce, tend to run with much higher labor costs, particularly the ones with more employees earning at or close to the minimum wage. These are also the businesses running on the smallest margins. Do you see how this is a terrible combination, and would have immediate and seriously negative effects on these businesses?
I've done and posted the math several times, as has SAM_DANGER, and we have both been ignored so I will not spout the numbers out again where they won't be read and/or responded to. Suffice it to say that we independently came up with very similar numbers for difference businesses, and the results would be catastrophic for small businesses in the most literal sense of the term.
I hesitate to bring up Ronald Reagan not only because he's a polarizing figure, but also because I myself have serious problems with a lot of the policies he enacted. However, there is a quote from him which is so truly apt to describe what I believe is going on in this thread:
“It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so.”
You guys say that the free market guys in this thread are the ones bringing up talking points, when your own statistics have so clearly been spoon-fed to you from sources with an agenda. The numbers I cited earlier in the thread were straight from state.gov.