In fact this is the perfect illustration of how the non-rich are manipulated into supporting the policies of the rich. Lots of people oppose the minimum wage increase on the basis of its impact on small businesses, but the reality is that small businesses have their margins squeezed to zero by their landlords, who raise rents as high as the market can bear. When the government sets a minimum wage they are effectively defining a non-negotiable boundary around the rent-wage-profit function for businesses. Business owners might be willing to pay higher rents and lower wages, but the minimum wage prevents them from doing this. This is better for workers (who get paid more), better for the economy at large because it puts money in motion (minimum wage earners spend 100% of their earnings and save nothing), neutral for the small business owners whose margins were already minimized, and worse for landlords. The only people who should be opposed to this are landlords, but they succeed in manipulating many others over to their side.
mason240|9 years ago