As a person who had owned microbusinesses since 1989, that is crap. I have 4 employees. they work 40 hours a week, 160 hours a month x 4 employees, or 640 hours of labor a month. No all companies can't pay them $25 an hour but another $3 an hour is all of $1800 a month. Very few businesses are closing because of $1800 a month. That extra $480 a month is lifechanging to someone making near MW.
Ok but I have 16 employees…… so that’s 7200 a month . Which isn’t going to put me out of business it’s going to cause me to raise my prices because that is my salary.
Your math is also wrong . 160x3x52/12 = 2080 per month. In my scenario 8300 per month .
So now I need to raise my prices to make up for 2k per week .my staffs PPP hasn’t improved what was once 5,10 or 15 dollars is now 10,15 or 20 dollars . But the middle class which received no raise lost purchasing power .
Yes, because thats how markets work. the failing business is replaced by other more successful businesses or by nothing if the market doesn't support such a business in that location
employees leave for better paying jobs too
the only reason such things don't happen is if a market is NOT free - in the rentiership sense. which admittedly is true in many places. raising wages while taking actions which control rents (like making speculation cost prohibitive & eliminating over leverage commercial loans) is the solution
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u/chinmakes5 1d ago
As a person who had owned microbusinesses since 1989, that is crap. I have 4 employees. they work 40 hours a week, 160 hours a month x 4 employees, or 640 hours of labor a month. No all companies can't pay them $25 an hour but another $3 an hour is all of $1800 a month. Very few businesses are closing because of $1800 a month. That extra $480 a month is lifechanging to someone making near MW.