An Entrepreneur and the Minimum-Wage
Our brilliant Congressmen in Washington, D.C. decided a couple years ago that it would be a good idea to raise the minimum wage by about 40% to $7.25/hour. It just took effect last year. That probably sounds like great news for everyone â more money in everyoneâs pockets can only be good, right?
Unfortunately, it doesnât work that way in the real world. If Iâm forced to pay everyone 40% more, I canât afford to schedule as many employees for as many hours, since our sales arenât going up by 40%. Remember, I can only afford to pay you guys a certain percentage of all the money coming in the door. That means hours get cut, and everyone ends up poorer.