posted by geeblock
Honestly I think most businesses that pay 15$ an hour save money in the longrun because they dont have to constantly change and replace staff. Not only does this waste resources, but it can cost you money because of lost business due to bad customer service by new employees.
This depends.
In certain industries, or within certain niches carved out within given industries, you're absolutely right, which is why many companies in those spaces do pay more than what works out to $15/hr. for even their bottom-tier employees.
Here's the thing: IF paying $15/hr is a sound financial move for a company, then doing so would put more money in the pockets of shareholders, owners, and/or executives. If we can trust them to be greedy, or at least self-interested (which is what most people are), then they would pay the $15/hr, because it would earn them more money in the long-run.
The thing is, there are industries where there really isn't that much upward mobility within the company, so whether you pay $9/hr, $15/hr, or $30/hr, there will still inevitably be a level of churn.
Couple that with the fact that some of these companies build their marketing strategy around being low-cost as opposed to having high quality product or service and you have a recipe for a potentially viable business that isn't conducive to paying a higher wage to entry-level employees.
Fast food is a prime example. People don't go to Burger King for a fine culinary experience or for 3-Star Michelin-level service. They go because they can get 10 nuggets for a buck. It wouldn't make sense to pay a higher wage there, because the increased quality of the employee wouldn't likely yield and palpable financial benefit.
This is, of course, also aside from the fact that a "living wage" is a moving target, because of inflation. When we were first married, my wife and I lived comfortably on a household income of about $40K a year. For the mathematically challenged, that comes out to just over $19/hr. Sounds fine, right? Except this was a household income, and there were two people living on it, so it actually worked out to being less than $10/hr per person. Yet that was still comfortable. Not lavish or extravagant. Comfortable. Just able to pay our bills, live in a nice townhouse in the suburbs, put food on the table, go out on a date every couple weeks, etc.
That same pay wouldn't be nearly as comfortable today.
So, the idea of moving to $15/hr because it's a "living wage" is not only impractical for some industries (and likely already implemented in the industries in which it's practical), but it's also short-sighted, because there will come a time in the not-so-distant future in which $15/hr is no longer a living wage, and we'll be back to this same spot having this same argument again.
This is all aside from the fact that it switches "paying for value" to "paying for need," but that's a different, more abstract argument.