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$15 Minimum Wage Hike Causes Shop to Sell $30 Pizzas, Sales Plummet

#59

When you have ten times more customers to spread the cost over then you can mittigate cost increases. Walmart only needs a three percent margin because their volume is rediculous. And bigger businesses have more cash reserves so if they post a loss for a quarter then they can still make payroll. Smaller businesses where someone started from scratch or a retired person cashed in their 401k those costs are magnified.


Doubling the cost of entry level labor without corresponding increase in productivity or efficency is just forced inflation. Thats why central price controls generally fail.
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$15 Minimum Wage Hike Causes Shop to Sell $30 Pizzas, Sales Plummet - by jj82284 - 08-31-2015, 08:58 AM



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