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How much of what the average American consumes in goods and services, is produced by minimum wage workers? Other than food workers such as migrant laborers and kitchen help?
What are the stats on the affect of a one dollar/hour increase in the minimum wage on the cost of living in the USA? I ask because whenever the topic is discussed. I hear a lot of unsupported opinion about "how it is so badly needed" or "how the economy will tank". What are you basing your opinions on?
Henry Ford took the view that a reasonably well paid work force was good for his company, his industry and the national economy. The consuming power of workers is what drove the American economy and expanded the middle class in the 20th century. Today's CEO's seem to have lost sight of the big picture and think in the short term. Mostly, it's "How do I increase the stock price and my bonus". Whether it's keeping staff on part time hours and getting a virtual subsidy in the form of food stamps, or closing factories and moving production to low-wage labor nations, or threatening such closures to drive down the cost of labor, it's not a well rounded or sustainable practice in my view. In the end, everyone will be poor and the nation will be a crappy, unhappy place to live.
Looking at only the bottom line will usually lead you to where you are looking. The Bottom.
I pay my workers above the local going rate and as a result have the best and most loyal team around. We also spend about 5% of our net on training and education. Because they are good at what they do, they do it faster and better with fewer mistakes, which lowers our costs and more than saves the money we spend on higher wages and the training. Plus, because we have fewer problems and higher quality, we get the better contracts and can charge a little more. It's win, win, win, for the workers, for me and for the clients.
Very admirable Vince. At the same time, it was your choice to pay your workers a little above the going rate, not the government telling you you have to. Your higher quality workers are contributing to your bottom line, allowing you to also invest in training your employees. So far, so good. Now let's say the minimum wage is now increased to what you are currently paying your workers. So now, your workers will expect you to increase their wages given your managerial approach. Assuming you have no problem with that financially, you were forced to do this due to retain that competitive advantage. That means your production costs are now higher, and that gets past on to the consumer in the form of higher prices. Hopefully, your customers are ok with that.