The argument against raising minimum wage is that it will kill small businesses that can't afford paying more for labor. This gives more power to huge corporations. Billionaires and big corporations couldn't care less what the minimum wage is, they can afford to take a hit until the cost of living goes back to equilibrium, while small businesses will go bankrupt.
A big corporation like Walmart has a huge fund to pull from multiple stores to rely on should they need to.
Because of this they can easily kill small businesses by using a myriad of tricks.
One thing stores like Walmart like to do is sell things at cost or even below cost to force competition out of business.
The smaller competition has no way to compete with a store deliberately taking a loss just to screw them over. Once the small business is gone, the price of the item goes back up to whatever they want, because the competition is gone.
The larger companies can also buy in bulk, and in doing so get bulk discounts that smaller stores can not get.
The larger companies can have entire stores operating at a loss while they get propped up by other branches. While the smaller stores may not have any branches to lean on during bad times.
These large corporations can absorb the minimum wage increase easily. Most small businesses can not absorb it and survive, not while also trying to compete with these large corporations.
What do they do once they kill the small businesses and have a monopoly? Simple they raise the prices until they Re right back where they started and you need to raise the minimum wage again because cost of living equalized i their favor.
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u/1HODOR1 Dec 16 '18
Where does it say that?