An example of a positive and a normative argument of why a business leader would oppose raising minimum wage?

Question

An example of a positive and a normative argument of why a business leader would oppose raising minimum wage?

Answer 1

As a business owner I can see both sides. As a business owner  the more costs=less profit. Not only does the owner pay the wage but also matches the social security taxes paid, meaning less income. Some business owners feel as if they are being punished by succeeding. For employees suffering to survive with prices of inflation it is a glimpse of hope. As example woman who has 2 kids working a minimum paid job can't get ahead.

Answer 2

Because it does nothing to help.  All it does is cause inflation.  Its not a question of how much you make, its how much what you make will buy.

Say you make $6.00 an hour and now thanks to the government your going to make $6.75.  Well a business only has a few options because the cost of producing their product or service just went up, and its not like the government cut their taxes to help them swallow your raise.  Therefore they can either cut back on their staffing, meaning your not going to get as many hours in effect erasing your raise or they are going to raise prices.  While that may not seem bad, think about it next time you go out to eat and your pizza buffet cost $5.49 instead of $4.99.  They effectively took 50 cents of your .75 cent raise from you.  It will trickle down to all goods and services you use.  

Plumbers, automotive mechanics and other skilled higher paid wage earners will use the new minumum wage to up the cost of their services to mantain the same wage gap between them and minimum wage workers.  What it results in is you might get an extra couple hundred bucks on your paycheck, but the goods and services you buy will cost an extra couple hundred bucks and perhaps more than your "raise".

If raising the minimum wage was the answer to poverty why not just raise it to $10 an hour?  How about $12. $20?  Its because it doesnt work like that.  Raising the minimum wage is nothing more than feel good legislations elected officials do to make you think they are looking out for your best interest.  Lets also not forget that the more you make the more tax revenue they collect.