Hamilton Bay Fan Remote

Why do we need minimum wage?

Many people wonder what we as a society, we need minimum wage. What's more, many people consider the existence of such an invention to be useful. Is it right? Let's do a little

simulation. Imagine, Dear Reader, that you have some savings there, and you want to invest in some business. Suppose you want to open a garage.

first The situation, if there were no minimum wage:

a) You open, employ four men for every 400 zł gross (let's assume for now that will agree to work for so much *, and that there are no unnecessary rotation). This gives you 1600 zł gross staff costs (for simplicity, assume that the gross salary = CKP, which means that they do not cost you anything more than their gross salary.)

b) Let us dispense with a spin period to simplify the business and assume that he goes full pair (taking into account their ability and your willingness to develop). Let's say that the income after deducting all expenses except for employees (for example, the parts can not be saved) is 6000 zł per month. In this 1600 zł pay employees and for yourself you have to clean 4400 zł gross (that is, of course, just to simplify). Such earnings you satisfied enough to dismantle the business. Four people have a job (the conditions are what they are, yet they have a job).

second The situation of the minimum wage at 800 zł per month:

Counting the costs 3200 zł salary amount per month, so you will be 2800 zł. That amount does not satisfy you, because, for example, you can earn elsewhere ~ 3500 zł, without the involvement (and risk!) Own capital to invest in such a fund. Four people no longer work.

And if you, Dear Reader, you still think the minimum wage as something necessary and useful?


* Car repair and all the bids come from the real business plan, which was created about 10 years ago for someone from my family and abandoned because of the minimum wage. If This invention was not, actually four people that got jobs. And in those circumstances (massive unemployment, lack of prospects for stable, low) were willing to work for 400 zł gross ...