Quote:
Originally Posted by Vulcan
As others have said this isn't an increase in the minimum wage so it won't effect most small business. What it does is put a floor of the wage scale that companies doing business for the city have. Say if company A pays it's workers $8/hr while company B pays it's workers $13/ hr. Company A can make a lower bid on a contract and win the contract. The city is saying they don't want to a part of labour usury. It may not be of practicable use in good times but in a recession where greedy employers can take advantage of the more desperate, it will be the moral thing to do.
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Greed doesn't drive business decisions in recession. Survival with a decent balance sheet does. Quite frankly if paying people more ruins the economics for types of business than said type of business will either be staffed by cheaper labor or failing that (Due to an artificial feel good city initiative or a mandated higher minimum wage), the type of business will either scale back or just not go ahead at all and take away from the overall job stock available for the population.
http://www.despair.com/potential.html