Minimum wage make businesses fail

Sounds controversial and it is, however, think of it this way: You’re a firm and you need 20 workers for your business you just have enough to cover their wages while making marginal profits. Minimum wage goes up; you’re now making a loss.

This initially is not a big deal increase prices right? In a perfect worked you can but in an elastic market where many other retailers can supply the same thing at a cheaper cost then that business has now failed. It is argued that by cutting out the smaller businesses it enables the bigger firms to grow and therefore produce more of the product at a cheaper price, agree, disagree?

Personally I’m for minimum wage being set but a lot of business will get around it by cash I hand jobs, pay on commission and such, watch out for these as there are still laws on your right to pay and don’t be afraid to enforce your rights.