Posted on 01/07/2021 1:43:34 PM PST by Vendome
2020 was one of the worst years in modern American history for small businesses. And now, thanks to a wave of minimum wage legislation that kicked in on January 1, things are about to get even worse.
Make no mistake: small business owners are already seriously hurting.
To add insult to injury, thousands of small businesses were vandalized and looted during the summer unrest after the death of George Floyd. (No, insurance doesn’t eliminate the harm).
At least 100,000 small businesses that were forced to close in 2020 will not reopen, according to Yelp. In a recent survey, almost 60 percent of small business owners said that they don’t expect their enterprise to survive through June 2021.
Many of these same small businesses teetering on the brink of collapse are about to get slapped in the face with surging labor costs. A total of 20 states had minimum wage hikes take effect this month as part of scheduled ramp-ups.
“New Mexico will see the largest jump, adding $1.50 to its hourly minimum and bringing it up to $10.50,” the Hill reports. “Arkansas, California, Illinois and New Jersey will each increase their minimum wages by $1.”
A wage is important for the living standards of the worker, but that isn’t its only important aspect. A wage is a price. Prices are essential for order in an economy, so price controls throw markets into chaos.
(Excerpt) Read more at fee.org ...
Ah yes, take away the incentive to improve yourself and do well in school.
It is sad what we have done to so many Americans who own small businesses, employ us, and make our communities better and more prosperous.
Remember, those who think this is a great idea support central planning. It’s the Venezuela, USSR, Cuba, and North Korea model. Works every time......
Dr. Sowell nails it as usual.
I have said before that most retail will not survive the Covid lockdowns. It was already tough enough before that.
The Democrats pulled a coup against the most pro-American President in 40 years.
Once all the Democrat SJW agendas kick in, there won’t be much left. Only gas stations, places like Walmart and grocery stores. That will be about it.
Most other will be online-only.
Hold on to your hats, friends.
the left leave places after they run them and enact their policies looking like a Mad Max movie.
I propose a billionare weath confiscation tax. If your net worth is 50 billion or higher, you pay 90%. The Zuckerscum Buffet and Bezos, Chicom loving Waltons can pay for their ideas
And the clueless who are glued to the MSM will never figure out why so many places start looking like inner-city Detroit.
VA has delayed the hike:
https://www.nbc12.com/2021/01/03/minimum-wage-increase-virginia-is-delayed-until-may/
I guess they are admitting that this hurts business. They don’t care though, they want small business to go away.
Without illegal immigration, miniumum wages are unnecessary.
Here’s the thing: no-one other than a dependent could ever afford to take a minimum-wage job. If you see an adult in a minimum wage, that person is getting massive amounts of taxpayers subsidies, enabling him to work for so little, and therefore, in turn, being passed on to the business owner.
You are not wrong. It will get far worse too as lower paying jobs are replaced by robotics and AI. The technology is coming sooner than we all think and as government regulations and labor costs increase under a Biden administration many companies will be in a bigger rush to replace people with machines.
It will shrink the low end of the labor market. We are already seeing it even in fast food restaurants and check-out lines. Raise the price of “labor” enough and you will greatly decrease jobs and opportunities for the very people you claim to be helping.
Just in time for the new immigration wave......
Where’s my stim check? New (p)resident said if jak is off and warlok won we’d get our checks. Pony up. He could have comawa ‘fweedumb’ hawiss take care of it.
Politicians have NO USE for small businesses because they can’t donate big bucks to campaigns. Now they are even trying to kill small businesses outright.
Politicians give big business too much power in exchange for money and favors. It’s disgusting and TRUMP WAS RIGHT.
AND WHEN TRUMP TRIED TO GO AGAINST THIS, THEY DESTROYED HIM BY INSURRECTION.
ALL OF THEM DID IT: BIG BUSINESS, LARGE TECH COMPANIES, DRUG COMPANIES, THE DEEP STATE AND THE CCP CARRIED OUT A CRIMINAL INSURRECTION.
I can appreciate the sentiment, but even such a drastic seizure of wealth is a pittance to the budget of Uncle Sam and after you took it all and spent it what next? We would still borrow money even after such an infusion of wealth.
The left talks a good game about the oligarchs as do the Bernie Bros, but never forget..... they will not go away and it is more lucrative for the advocacy class to shake down Zuckerberg every few months than it is to take all of his money.
Most of our oligarchs pay protection money like a shopkeeper in NYC back in the day.
The healthcare system and insurance companies are now big business too!
That is why the quality of your healthcare is GETTING WORSE.
And global stocks rise on the hopes of traitors that jobs will once again flee the U.S. and slave labor will once again reep billions for the swamp.
Who was that independent that spoke of the sucking sound as jobs left the U.S.?
The remaining small business employers will certainly be more selective in the quality employees they hire now. Maybe we as customers of those small businesses will benefit from better service from those higher quality employees? This could be a win-win for every one.
It’ll be all Amazon, Costco and WalMart
They may be higher in quality but they will assuredly be fewer in number - and the higher unemployment is a lose-lose as you and I pay for their government benefits.
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