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The coming Minimum-wage increase
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11-01-2007, 10:06 PM
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enentique
Join Date
Oct 2005
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I really want to know what job is so unprofitable that it can't afford to pay more.
Paying someone at a gas station to check the customers' oil and water, wash their windshields, and put air in the tires, is so unprofitable. The stations don't pull enough additional business for having those services available, to justify paying the wages they would get. That's why the job doesn't exist any more, and hasn't for years. The only places you find those services any mor, are where it costs $5 more to fill your tank every time... and how many people do you see using those "full service" pumps?
The only way the station owner could afford to pay those workers, is to increase his prices substantially. And they found through hard experience that people would go to the other station down the street that had niether the services nor the high prices.
Raising the minimum wage destroys low-wage jobs, by making the marginal-increase-of-business ones completely unprofitable and forcing employers to eliminate them.
Simple economics, known to all but socialists.
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