If there are any economics people out there, my question to you is: Why not make the minimum wage a percentage of what a given company is worth/makes/can pay? That way every company wouldn't have to pay out more than they could afford and couldn't get away with paying less than they could afford. You could call it a "floor wage" and then have a base minimum wage that no company could go below, so that small companies couldn't get away with paying there employees like 25 cents an hour. Would this be a good idea, or is their some good reason we don't do that, that I'm just not aware of?
To start off if we make minimum wage a percentage of how much a company makes then big company's won't be able grow and will only get smaller. Lets use Apple as an example they make 55 billion dollars each year. That comes down to about 4.5 billion every month they have a total of 80 thousand employees. If every employee gets payed a percentage of this than apple could easily go from 55 billion dollars a year to 55 million dollars a year.
Ok, so maybe percentage of profits is not the answer. However, I still like the idea of adjusting the minimum wage to fit what the company can pay. Would it make a difference if it were based off the companies total value? Or maybe have bracket system, similar to tax brackets, based on the companies size/net worth? Because the sticking point people have with the minimum wage is that bigger companies can afford to pay their employees more (such as McDonalds or Walmart), but smaller companies can't afford a higher minimum wage. So in my mind it doesn't make sense for big and small companies to pay the same minimum wage and should therefore be handled differently. Do you think there is a practical way to actually do that or is it just wishful thinking and why?
If we have minum wage a percentage of how much money company's have then companys such as McDonald would give their employees much more money then a startup company. If you raise or change the minum wage then company's won't be able to grow and they will get smaller. Companys will loose money because they will pay a percentage of what they make then the company will loose their money by having to pay employees more then of the company gains employees and/or looses money it will be harder for the company to pay their workers.