this post was submitted on 08 Nov 2024
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Here's another part of the equation, the owner gets enough of a share of the business profit where they can buy a new house, expand to multiple locations, buy new cars, etc.
The extra couple bucks an hour per employee is a tiny drop in the cost pool per business operational hour compared to that. They could perfectly well keep prices the same without paying sub-minimum wages by taking a smaller cut themselves.