Quote:
Originally Posted by jammies
Tim's Hardware owner Tim has 5 full-time employees that he pays minimum wage. Last year he made a $250,000 profit, however this year, due to having to pay his employees $15/hr instead of $10/hr, each employee is costing him an extra $10,000, so he will only make $200,000.
However, simple math works out that each employee got a 50% raise, and there are 5 of them, and Tim is making only 20% less, and there's but one of him. QED, it's a huge net win!
Woo! Tim is gonna put Jim right out of business, too! He's got the city of Make-Believia all sewn up!
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QED nuthin'. Slim is trying to open his hardware store too but the numbers don't make sense. It took Tim a decade to turn his healthy profit. Slim won't be able to cover his labour costs in the time it takes him to develop his business. Ergo Slim has no happy, well paid $15/hr employees.