Allen's Weblog

Continuing calls for raising the “Minimum Wage” is always done by those who have absolutely no concept of how the world works.

I just have to tell this story,

Long after my entrepreneurial and corporate careers, I taught computers and business at a local university. One subject I taught was a course in Business Plans — it incorporated both my computer and business backgrounds.

I had a Marine in class who said he was going to write a plan to start a  limo company because he moonlighted on weekends as a driver, he complained he only made minimum wage and he would employ Marines and pay much better — I said, “Go for it.”

Each week he reported his research: ” did you know that I have to sign a five-year lease on office space,at $4,000 a month? That’s about a $250,000 obligation whether I make it or not!”

Ahhh….”yes, I know that.”

Next week it was, “Those limos cost $60,000 each, and I was going to get three new ones  but I’ll have to settle for one, used, and do you have ANY idea what insurance is for a Limo service…”

“Yes, I know that also.”

The bottom line was that at the end of the course he would have to have a single, used limo, run it from his home and, yes, pay the drivers MINIMUM WAGE,

Writing a business plan for ANYTHING is the best dose of reality in the world. I strongly recommend it.

Filed under: Culture, Economics, Education, Justice, Politics, Taxes | Tagged: minimum wage |