Minimum Wage

On July 24 the minimum wage will change from $6.55 to $7.25 and it will of course effect an increase in unemployment. The job loss will fall on those who are young and are just entering the workforce because they are the ones that mostly earn the minimum wage. For those that retain their job it is an improvement in their situation. However, it keeps pressure on business to look closer at their workforce and look for ways to lower payroll costs. There are a number of ways this is done: reduce the workforce, get more out of each worker, obtain labor saving devices, work the better employees on overtime. If you were running a business what would you do to get your payroll into line with your business plan? Would you raise prices to cover the wage hikes? Or, would you merely absorb the hikes and take less profit from the business. What do you do if you are only breaking even?