COMS 151L Lecture Notes - Lecture 4: Small Business
Document Summary
Today i will talk to you about the impact of minimum wages on the economy. Introduction: although it may seem like raising the minimum wage is a good idea, the downsides far outweigh the benefits it may have. Upside: a higher minimum wage will only benefit the small group of people who remain employed, after the change in wages. Yahoo finance estimates a loss of 6. 6 million jobs nationwide if the minimum wage rises. Doesn"t sound too good: effect on small businesses. Small business provides 55% of the jobs in the united states today, and that number is still rising. Small business work on a very small margin of profit in most cases, and cannot afford additional costs. If the minimum wage is increased, small businesses will be forced to either raise prices on their products or services, or to lay off some of their employees, to remain profitable.
