The Ripple Effect of Raising Wages
When wages are forced to increase on a mass scale the guy that owns the coffee shop doesn’t just have to pay a few extra bucks per staff.
There’s a ripple effect.
He gets a phone call from his supplier of cups. The cup company tells him they need to raise their price another 10 cents to make up for the wage increase.
Then he gets another phone call from his cleaning company that tells him they need to raise the prices another $5 an hour for cleaning.
Then the milk company, then the pastry guy then the bookkeeper and so on.
Eventually the profit margin on that cup of coffee does’t add up — the math doesn’t add up.
The coffee shop owner has 2 options if he wants to survive.
He can pass that price onto the customer or he can let go of a staff member and try to do more with less.
It’s easy to sit there and complain as a consumer about business owners letting people go or to complain that they’re increasing their prices but they have no other choice. That’s the reality of the capitalist system we live under.
If you were in their shoes you would be in the same delema.
So cut these business owners some slack, they’re the ones taking the risk and responsibility of providing jobs for the community.
Originally published at Jean-Luc Boissonneault.