Higher Wages Part of the Cost of Doing Business in A Lucrative Market
First we say to the business owner in Seattle/Tacoma or Chicago or the Bay Area or Los Angeles: “Even if we back out the entire cost of labor in our market, the cost of doing business would still be higher here than in many places. Yet you still choose to locate your business here.”
Then we say: “Let’s just back in a higher minimum wage and just acknowledge it as part of the higher cost of doing business here in our local economy, as “costs” are re-distributed to the poor as well. ”
See how easy it is? Most if not all businesses will remain here, because wage cost is only a small component of doing business, for most businesses.
Only businesses with a model depending upon mass low wage employment will suffer a loss in profits but they will probably not leave because they need a population from which to draw their work force.