JP Hochbaum
DP Veteran
- Joined
- Feb 7, 2012
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It is real simple algebra.
If you have a burger flipper making $10 an hour flipping 100 burgers an hour, his cost per unit is 10c. If you increase his wage to $20 an hour it increases to 20c a burger.
This example is obviously remedial and basic but there are also real life examples from restaurant owners who had run the number as well:
"One year, in 2006, we looked at Arizona state minimum wage proposal, which was a 30 percent increase in the state minimum wage. At the time, it was $5.15, and it was being proposed to be raised to $6.75. [...] And what we did is we went and we looked to see how much would this cost businesses. We looked at what are the wages of workers at the time, how many hours did they work. We added that all up. We looked at payroll taxes and how much that would go up for employers. [...]
What we found is, for the average business in Arizona, that the cost increase would be less than 0.1 percent. And so if you want to think about it in real concrete terms, businesses, by raising their prices by less than 0.1 percent, would be able to cover all the costs of a minimum-wage increase of a size of 30 percent."
Daily Kos: This week in the War on Workers: Raising the minimum wage would increase prices by how much?
If you have a burger flipper making $10 an hour flipping 100 burgers an hour, his cost per unit is 10c. If you increase his wage to $20 an hour it increases to 20c a burger.
This example is obviously remedial and basic but there are also real life examples from restaurant owners who had run the number as well:
"One year, in 2006, we looked at Arizona state minimum wage proposal, which was a 30 percent increase in the state minimum wage. At the time, it was $5.15, and it was being proposed to be raised to $6.75. [...] And what we did is we went and we looked to see how much would this cost businesses. We looked at what are the wages of workers at the time, how many hours did they work. We added that all up. We looked at payroll taxes and how much that would go up for employers. [...]
What we found is, for the average business in Arizona, that the cost increase would be less than 0.1 percent. And so if you want to think about it in real concrete terms, businesses, by raising their prices by less than 0.1 percent, would be able to cover all the costs of a minimum-wage increase of a size of 30 percent."
Daily Kos: This week in the War on Workers: Raising the minimum wage would increase prices by how much?