The main problem with this comic strip is that it conveniently "forgets" that businesses make massive profits.
90% of new businesses fail. A new business is much more likely to pay on the low-end of the pay scale (especially new retail, stock, or line workers).
Again, 90% of new businesses fail. Some reasons:
So 90% of new businesses are bleeding cash and do not "make massive profits". At best, they avoid massive loss. Contrary opinions are not based in fact. If it was easy and the success rate much greater than 10%, "everybody" could do it.
Why there is "have not" sentiment in favor of wage controls is a mystery. It doesn't affect the 1% (largely). Certainly not the 0.01%. At the mega-global-corporation level, labor is available internationally at a tenth or less of any minimum we set. Failing that, they automate or outsource to the lowest bidder. ***
If you want to setup shop and compete with import behemoth Wal*Mart, how do you do it? It is illegal for you or your workers to be compensated below the minimum. It has become CRIMINAL - or at least very difficult - to pay under the minimum. Fewer jobs qualify and the more red tape you make to allow it, the less benefit that option even has. So you can't work for $5/hr and you can't hire at $5/hr. What has that won us? 30% unemployment. WTG.
Some small business will fear an artificial wage hike. Medium to large are less likely to give a damn. It is cementing their position in the marketplace as all competitors get cut off at the knees. Not the ones outside the US, but we all know that...
I'll leave with a quote regarding how to achieve "equity" (i.e., a less stupid way to do a stupid thing):
If society believes in creating a minimum standard of living, the way to implement it is through mechanisms like the earned income tax credit, not the minimum wage. The myth that minimum wage workers are being treated unfairly is exposed by a look at the correct data on labor productivity. In a truthful debate we see that the minimum wage has been generous to workers receiving it when compared to the changes in the value of their output.
http://www.forbes.com/sites/jeffrey...ve-been-told-about-the-minimum-wage-is-false/
Roundabout... a minimum income with ZERO wage controls and TOTAL labor fluidity (at will excepting explicit contracts to the contrary) would be far, far, far preferable to the mish-mash of 10,000 laws, protections, "insurance" schemes, etc. This way, whether you pay the babysitter $1/hr or $10/hr, it is not the gubblemint's concern. Double-reporting of income payments might concern them, but not the amounts.
*** Yes, eventually we will all be automated and all be outsourced. Eventually. Business is not about satisfying hypothetical demands ten years from now or competing with terminator-style robots reprogrammed to dice tomatos. Whatever progresses, the only thing people need to work now or in the future is freedom. If there is demand you will work. If there is no demand, you'll forage with high tech tools until your minimum needs are met. Peace, freedom, land, prospertity. Barring that, super-intelligent hyperoverlords could pay us to be less annoying assuming we're permitted to live.
