Just so I can understand your argument better, can you elaborate this a bit more? How do you measure their output? How do you arrive at the dollar value?
It isn't really a matter of finding a specific dollar value but instead determining if the investment (a new worker) will result in a revenue increase that exceeds the cost of the new investment (ROI: return on investment).
This is what it means to run a business, to ask and answer that question and act upon the answer. If you answer correctly in a sufficient number of instances, your business succeeds and you are profitable. If you answer incorrectly in too many instances, your business fails.
A minimum wage puts a floor on labor costs and that will be an added constraint in the business model. For some business models, that added constraint may make the business unworkable. For others it may mean that prices need to be adjusted, or the number of workers and/or the type of worker hired needs to be changed. Perhaps it means changing the hours the business is open to manage staff costs. Maybe it means purchasing a machine to eliminate a worker because now the machine is cheaper than the worker whereas before that wasn't the case.
If you have an opportunity to talk to a small business owner that employees part-time, close to minimum wage workers, ask them what they have already done to adjust and what they intend to do. The affordable care act has already forced many employers to cut hours to their part-time workers to avoid the extra fees that kick in at 30 hours. Many employers will implement changes to their staffing long before the actual minimum wage change kicks in. This is called "running a business", which means planning ahead.
This is what it means to run a business, to ask and answer that question and act upon the answer. If you answer correctly in a sufficient number of instances, your business succeeds and you are profitable. If you answer incorrectly in too many instances, your business fails.
A minimum wage puts a floor on labor costs and that will be an added constraint in the business model. For some business models, that added constraint may make the business unworkable. For others it may mean that prices need to be adjusted, or the number of workers and/or the type of worker hired needs to be changed. Perhaps it means changing the hours the business is open to manage staff costs. Maybe it means purchasing a machine to eliminate a worker because now the machine is cheaper than the worker whereas before that wasn't the case.
If you have an opportunity to talk to a small business owner that employees part-time, close to minimum wage workers, ask them what they have already done to adjust and what they intend to do. The affordable care act has already forced many employers to cut hours to their part-time workers to avoid the extra fees that kick in at 30 hours. Many employers will implement changes to their staffing long before the actual minimum wage change kicks in. This is called "running a business", which means planning ahead.