Why do businesses complain about minimum wage?

As the cost of livin continues to rise, so do the minimum wages. Companies complain about this, even small businesses that do well even though they're small. Employers are still people too, they need to make money to stay alive but yet they complain about minimum wage being so high?


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Most Helpful Girl

  • Companies do not want to give anything more. If they could get away with $4/hr or less they would. Another reason why they outsource jobs.

    Get a defective phone? T mobile will charge you $21 for a new one and won't give you a new battery or charger. Just the phone.

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Most Helpful Guy

  • From a classical economics perspective , the theory says that minimum wage causes inflation.

    But is it necessarily a bad thing?
    Actually , no.
    dollarsandsense.org/archives/2014/0714macewan.html

    "So what happens when the minimum wage is increased? Consider the situation in restaurants that have a middle-income clientele. Restaurant owners, facing a higher wage bill, would like to pass the costs on to their customers. But their customers are people whose incomes have not been affected much, if at all, by the higher minimum wage. So if prices at the restaurants go up, these people will buy less and the restaurants will now lose some profits. They may raise prices a bit, but not much. Whatever they do, the restaurant owners will have to, if you’ll pardon the term, eat some of the increased costs.

    The point is that, with the increase of the minimum wage, firms that face higher costs cannot maintain profits simply by raising prices regardless of demand for their products. While the increase of the minimum wage will increase demand for those products purchased by low-income people, it will not yield an equal increase in demand for all products." ...

    Sadly , the country is run by a bunch of lobbyist and special interest groups who acts in the interest of the stakeholders they represent instead of the people.

    Spin doctors be spinning for their clients I suppose.

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What Girls Said 2

  • Because they don't want poor people to be given any more of their money :P

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  • No one is ever satisfied with what they have. we always want more, better things, bigger things..

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What Guys Said 6

  • How high is the minimum wage over there? They complain because they don't want to pay their employees more money. There are some businesses that are struggling to but the ones that are not struggling I feel it comes down to greed to be honest.

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  • Simple: they want to pay less than the minimum wage.

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  • Because business isn't charity.

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  • Because the point of a business or a corporation, small or large, wants to maximize profits as much as they can. That is the number one goal, they get more profit which means they can expand, meaning more expansion etc. etc. It is the way the world works right now unfortunately.

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  • Because they really hate inflation costs.

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  • Because companies are greedy fucks that's why.

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