I don't want to derail Sparklies' plurk, but wanted to offer a thought from a non-US former small business owner married to an American former small business owner:

I feel that the real challenge with small businesses in the US is not around affording minimum wage, even if that increases. It's health care costs.

Oh for sure. Having a national healthcare as a base would change things massively on all fronts.

In an interview my husband gave about being a games startup, he cited universal health care as a barrier lifted for being able to hire and retain good employees. AND, for being self-employed as well!

Imagine being a self-employed contractor in the US and having to buy your own insurance. I looked into it once and started crying. Having universal health care means you CAN be self-employed with that looming fear lifted from you. You can stress about finding customers and everything else, but never worry that being hit by a car will bankrupt you.

But, I imagine a minimum wage increase is a pittance compared to what little startups have to fork out for health care costs.

I've done the sole proprietorship thing, and got healthcare is the real bitch. Especially when you're in an industry (pet grooming) where injury is "when not if." The only places I've ever worked to offer health insurance to (full-time) pet groomers are corporate (PetSmart, Pet Supplies Plus, PetSense, and I'm sure Petco does too.)

self employed contractor here, never been able to afford health insurance. I live without medicine until I get sick. Then I will die.

Yay america!

Insurance is a friggin LIE anyhow. I watched my grandparents and then my parents and then my wifes parents get screwed over by the insurance they carried their whole lives when they got sick. First they went broke, then they died. It's a scam.

I'm not even going to start on about pre-existing conditions.

Alaska this is so true! For our small business, we really have wanted to hire someone forever! But we can't afford healthcare, and it's a huge barrier for us. Hell our own health care is ridiculously expensive.

Self employed contractor. Didn't ever have it til I got a 'normal job'. About to lose it again

There are so many hidden costs as well. disgruntled employee fired, decides to sue you, even though they lose, you still had the legal fees they do not pay. Someone pays, with a check paid previously many times with a check no problem, last check bounces. There is time and money tracking them down, trying to collect that, if you can.

People who do not pay on time, your payroll and costs keep going, even when they choose to "forget" to pay the bill. I have been through 3 law suits, because people thought we had deep pockets, to pay them. It is laughable. I can not tell you how many times bills went unpaid, to make sure employees got paid.

on top of the employee costs, in California our building costs, where astronomical, add taxes, and insurance on top of that.

my dad has a lot of stories, tho he wasn't sued that much. even just last year he had to pay his neighbor $10,000 to buy a piece of land that he had already bought from the neighbor's mom (original owner) years before but the property deed hadn't been drawn up correctly. He thought if he took it to court it might have gone his way, but he wasn't sure.

Lots of stories like that

I wanted to know more about wage increases. Canada just did this not tooo long ago. It seemed from the average consumer's perspective that all costs went up, so while those that made minimum wage may benefit for a short term, then everything just inflates to pay for the employee cost. So your coffee doubles in cost...etc.

Always wondered if that was scare tactics or what. lol

I do not know what the percentage is, but prices do have to go up, it is common sense. If it costs $10 to make something and I sell it for $20, and my costs go up, I either have to charge more or hire less people. I can not remember the numbers we did these scenarios and graphed them in my econ class.

Most will not raise right away, they will cut costs, ie labor or try and source it cheaper.

Healthcare is a human right and should be treated as such. I'm not getting my hopes up, though.