In my opinion, most small businesses will fail. I am a small business owner. My company is at the stage where we have good days and bad days, more being bad profit-wise. So, every dime I make goes back into the business just to keep it afloat. There have been weeks I was not able to take any money from the business to cover my personal expenses. In the form of a paycheck. For example, when the company produced a comedy show in ATL. The venue was huge so naturally, we needed to hire more body for this event. As a matter of fact, every aspect of this show was increased. The insurance policy was doubled, the security guards were tripled, the staff was increased as well. Even though the company took a loss we still managed to pay everyone. Could you imagine if during these hard times with all the restrictions where you can only have half or 25% of the customers in the venue, what that would do to your revenue? On top of that now you must increase everyone's pay! How long do you think a business like mine or any service business (Restaurants, Live Entertainment, Department stores) would stay open?
The problem as I see it is not the current wages, but the leaders of this great nation lying and tricking the people. The bottom line comes down to greed and egos. We Americans want to be the biggest and best country in the world. So, it has us competing with other nations and we want to win no matter the cost. Instead of pretending that we are better, why not try to become the best. We are the family that has all the secrets everyone in the house is messed-up and not happy. Then we go outside and pretend that everyone is fine and getting along, the perfect family. Our leaders should pay less attention to the numbers and more to what is really happening with the people. The government lowers interest rates to make borrowing and going into debt cheaper. After that when everyone is in debt up until their eyeballs, they raise inflation. Now people must work harder to pay off all the debt they took out. This causes people to pick up extra shifts or get second jobs. Now if you are working longer hours you must pay more for childcare. Also, with these extra jobs travel is high in demand, gas prices go up. You are away from home you need food on the go so food prices go up. Now that you are working more your taxes are going up, so the government is collecting more from everyone. Now that everyone is making more money the government once again here comes inflation. The issue again now you make $1 or $2 more an hour which is $40 to $80 dollars more on your check minus the 30% in taxes. With the inflation price, everything goes up as well. These things go, not just $1 or $2 but 5% or more. Wages go up every 5 to 10 years while inflation is an average of 2% each year. A 2% rise is considered a good economy to the American government, but what about the people? I feel America should slow down a bit. Stop raising prices to let the people get out of debt a bit. Renting an apartment should not cost $4000.00 for a one-bedroom (in NY and Cali). If people had more money after their bills, they would spend more on their wants. You know there is a disconnect with all the homeless people in each state. This will not be fixed by a $5 pay increase it might be fixed by a price ceiling on certain goods and services. Like health care, housing, insurance, school, taxes, and food. Make these things affordable and the country will run ten times better than it is now. Do not forget to cut out all the wasteful spending the government using each year. Fix that problem and we will all live like Kings and Queens.
You, Will Work Harder, Earn Less, and Be Taxes More.
I think the owners will be forced to cut hours and benefits. There will be people they keep on full time like managers and supervisors, to keep things running smooth. These individuals will have to wear more hats. They will on top of their duties help with customers when shorthanded. They will probably clean up the office during their downtime. Cover when they are short-staffed when people call out because every shift will become a skeleton crew. Now that their checks have increased so will their taxes. This could mean you will enter a higher tax bracket if you do not know what this means go ask any middle-class worker. They earn just enough not to qualify for any programs or government-assisted. Not enough to live comfortably. This even goes for when they send their children to school, they pay full price for everything. Look at the stimulus checks that were issued some people just tipped the line and did not qualify for one. Remember this will affect both the employer and employee the only one truly making more money will be Uncle Sam. When you earn more you and your employer pay the increase in the taxes. Now that your check looks bigger on paper your creditors will expect you to pay more. Like if you owe child support, student loans, and do not forget most people in low-income areas rent is based on their salary. When you get a raise so does your landlord. So, getting paid $5 or $6 dollars more could mean paying an extra $300 to $500 each month. When you get a chance sit down go over all your expenses and see if the increase will help or hurt you.
Now is not the time to increase pay, now is the time to decrease the cost of living.