Not all businesses are created equal. There are different profit margins for some than others.
This doesn't take rocket science to figure out. The bottom line of Tesla is going to be far greater that Grandma Sue's Baked Goods in Winchestertonfieldville, IA.
One company makes billions of dollars, the other one makes tens of thousands.
This is why the government needs to keep their noses out of private businesses because they kill businesses that way and pave the way for monopolies, making it much more difficult for everyday Americans to go after their dreams. The American Dream is fading away and it's all because the government is moving it farther away from us.
Minimum wage is one thing that wrecks businesses by forcing employers to pay wages that they can't afford. Believe it or not, some people are there for more than just a get rich quick scheme. Remember, they agreed to work there for a certain wage.
Having the minimum wage track productivity growth is not a crazy idea. The national minimum wage did in fact keep pace with productivity growth for the first 30 years after a national minimum wage first came into existence in 1938…
Think of what the country would look like if the lowest paying jobs, think of dishwashers or custodians, paid $26 an hour. That would mean someone who worked a 2000 hour year would have an annual income of $52,000. This income would put a single mother with two kids at well over twice the poverty level.
And, this is just for starting wages. Presumably workers would see their pay increase above the minimum as they stayed at their job for a number of years and ideally were promoted to better paying positions. If we assume that after 10 or 15 years their pay had risen by 20 percent, then these workers at the bottom of the pay ladder would be getting more than $60,000 a year.
$26 per hour would absolutely ravage our economy. You could say goodbye to your job if you're earning under that, that's a guarantee.