Apr 1, 2021
Wayne Winegarden opines, "If the fight for $15 minimum wage is successful, it will impose far more costs than benefits. Not only are minimum wage proponents distorting the population impacted, but they also fail to understand the economic trade-offs required. To understand the trade-offs, it is helpful to review the financials of a typical retail business, which is the sector where the vast majority of minimum wage workers are employed. Based on the average annual revenue of a small retailer ($262,092), and the average cost structure, a pro-forma financial statement of a small retailer looks something like Table 1, which illustrates that based on the current costs of running a retail store, the average small retailer earns about $43,000 in profits annually."