Just in case my last post wasn't clear to those without business savvy who argue that minimum wages or health care mandates result in layoffs, let me spell it out with a hypothetical.
You make widgets. You have 5 employees who make them. You serve customers with about 100 widgets a day.
The government raises the minimum wage or creates a health care mandate, raising the cost of your labor.
Your response as a business owner is to lay off one of the five workers. Now each worker, who normally makes 20 widgets a day is now expected to pick up the slack and make 25. Surprise, surprise, it doesn't work that way. There is no magic way that an employee can suddenly increase their productivity by 25%.
So, a number of possible things can happen as a result of your bone-headed decision to spitefully lay off an employee because of the government mandate:
1. Quality suffers.
2. Case delivery falls behind schedule.
3. Customer service suffers with fewer employees servicing the same number of customers.
4. Widget production suffers more mistakes and rework because of excess workload per employee.
Bottom line: You begin losing customers and your business suffers. Meanwhile, your competition picks up your disgruntled customers and they grow.
Show me a business owner that lays off workers because they have to pay them more and I'll show you a business run by a bonehead who's going out of business.
His/her competition that simply lives with less margin will make up for it in volume.
Hope this helps.
You make widgets. You have 5 employees who make them. You serve customers with about 100 widgets a day.
The government raises the minimum wage or creates a health care mandate, raising the cost of your labor.
Your response as a business owner is to lay off one of the five workers. Now each worker, who normally makes 20 widgets a day is now expected to pick up the slack and make 25. Surprise, surprise, it doesn't work that way. There is no magic way that an employee can suddenly increase their productivity by 25%.
So, a number of possible things can happen as a result of your bone-headed decision to spitefully lay off an employee because of the government mandate:
1. Quality suffers.
2. Case delivery falls behind schedule.
3. Customer service suffers with fewer employees servicing the same number of customers.
4. Widget production suffers more mistakes and rework because of excess workload per employee.
Bottom line: You begin losing customers and your business suffers. Meanwhile, your competition picks up your disgruntled customers and they grow.
Show me a business owner that lays off workers because they have to pay them more and I'll show you a business run by a bonehead who's going out of business.
His/her competition that simply lives with less margin will make up for it in volume.
Hope this helps.
Atheist Forums Hall of Shame:
"The trinity can be equated to having your cake and eating it too."
... -Lucent, trying to defend the Trinity concept
"(Yahweh's) actions are good because (Yahweh) is the ultimate standard of goodness. That’s not begging the question"
... -Statler Waldorf, Christian apologist
"The trinity can be equated to having your cake and eating it too."
... -Lucent, trying to defend the Trinity concept
"(Yahweh's) actions are good because (Yahweh) is the ultimate standard of goodness. That’s not begging the question"
... -Statler Waldorf, Christian apologist
