What does raising the Minimum Wage Mean?

I am not an economist or Politician.  But I have a brain and use it once in a while.

I was discussing the minimum wage issue with a couple of friends and we came up with this.  So I thought I would share.

People discussing raising the minimum wage is saying that it is important so people who are working at the current wage just can't make ends meet.  So how is this most likely to work out.

Lets look at it as a business owner or Manager. 

During the regular course of a day you have 5 people working for you at minimum wage.  They all work 8 hours a day and 40 hours in a week. 

The wage now increases $3.  So you are now paying each worker an extra $24 a day and $120 a week.  Since you have 5 people working for you it is costing you $120 a day and $600 a week.  You now have choices as an owner/manager.  Do you lose out on $600 in profit?  You can raise your prices.  In a competitive business might mean less work and the downfall of your company.  Do you lose out on $30,000 profit over the course of the year?  Do you cut employees or hours to maintain your margins?

I think we all know what the answer is going to be. 

So tell me who does raising the minimum wage help?  The ones that keep their jobs?  How about the ones that went to now having no income? 

Payroll is generally the single biggest expense in running a business.  When you need to make cuts to keep a business profitable and afloat it is generally done in payroll.  You cut your staff or you cut their hours.