Small business owners tend to be more involved in the local community and have more invested in the well-being of the community. Small businesses help keep money in the community. Having a number of small businesses competing is more desirable economically than two corporate giants pretending to compete. Small businesses are often better for the environment. Etc, etc...

8/21/2007 4:18:34 PM

Quote :

"Having a number of small businesses competing is more desirable economically than two corporate giants pretending to compete."

How is this more desirable as long as no monopoly or price fixing occurs?

8/21/2007 4:43:44 PM

Quote :

"And you also know that I don't know how I feel about this idea that raising minimum wage causes unemployment. Conservatives always say that, but I need more evidence than economic theory."

We have it, and the evidence is pretty good:
http://www.ncpa.org/ba/ba292.html

Quote :

"So, hell yeah, raise minimum wage to 15 dollars an hour. We can help small businesses pay the new wages. And giant corporations should be able to figure out a way to keep all their employees and pay them the new wage--they should start by taking money from the bloated higher-ups and give it to the employees."

Here is why everyone hates economists, it is up to us to point out the obvious: people are self interested. Where-as giant corporations could easily pay higher wages without laying anyone off, most small businesses could afford it too; but we have no mechanism by-which to make them do so. We could make it illegal to fire anyone, but since the population grows every year we need more jobs every year, how are you going to make companies hire the new workers? Whom do you force to hire them? Who decides? How do you protect companies against competition from new companies not saddled with a large workforce?

I hope you understand, we run into these problems when you start trying to set prices. We can subsidise as through the EITC, or we can tax as through the income tax, but fixing one market's price and quantity means you will need to fix other markets and eventually all markets.

So, for the sake of humanity, limit government interference to subsidization, taxation, and regulation. Regulation, such as mandating a safe working environment, is fine. The market will just settle on lower wages to compensate. But mandating a $15 an hour wage is beyond compensation; no amount of cost adjustment, from reduced training to harsh working conditions, will restore labor costs for even a minority of firms, and they will economize on labor.

8/21/2007 5:03:51 PM

^^^ Do you have something to back up your assertions? Of the two large companies I've worked for (one an internation industrial conglomerate, the other a fairly large regional company), both are very active in the local community. Both fund philanthropic grants that provide millions of dollars each year to various public interest projects. The one small company I've worked for (<10 employees) barely had enough money to continue functioning, much less enough to fund any sort of significant community involvement. The two larger companies also paid me more than I would find doing similar work for a smaller company. A larger salary for me means that I can and do consume more goods and services, most of which are provided by locally employed people.

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Also, on the previous page, LoneSnark essentially suggested a raise in minimum wage much like you did. The difference being you suggested a cash increase whereas LoneSnark advocated a 'wage' increase through lower tax rates. To add to LoneSnarks comment, I don't believe that many people have issue with government provided services to ensure that a minimum standard of living is maintained. Notice that nobody actually suggested that government funding housing be done away with--only that 'handouts' should be limited to those making an attempt to support themselves.

[Edited on August 21, 2007 at 5:27 PM. Reason : dammit..............]

8/21/2007 5:05:52 PM

Quote :

"Small businesses are often better for the environment."

Small businesses usually don't have the resources or clout to invest in environmentaly friendly practices or convince or demand their suppliers adhear to some sort of standard.

8/21/2007 11:19:31 PM

^ Not necessarily true for a lot of newer architectural and design-build firms. They design and build green without using/wasting resources.

8/22/2007 12:57:36 AM

The thing about soapbox that I love/hate. My thread about people who make no effort to better themselves and what local governments are doing to wean them off free services turns in to a pissing match about large vs small business. wtf?

8/22/2007 11:38:23 AM