Paychex CEO Sees Positive Wage Pressure in Amazon's Pay Raise

The video discusses job growth and wage trends, highlighting differences between small and large businesses. It examines the impact of the $15 minimum wage, particularly Amazon's role, and its effects on the labor market. Regional employment trends are analyzed, showing how wage policies affect growth. The dynamics of wage increases and incentives are explored, emphasizing the importance of base wages. Finally, the video addresses business concentration and its influence on wage power and employee benefits.

What is one reason small businesses struggle to increase wages compared to larger companies?

• They have higher profit margins.

• They benefit more from tax reforms.

• They have more employees.

• They have less flexibility to raise prices.

How does Amazon's $15 minimum wage announcement affect other companies?

• It increases pressure to raise wages.

• It eliminates the need for hourly workers.

• It reduces the need for bonuses.

• It decreases the overall wage pressure.

In which regions is employment growth slower due to minimum wage increases?

• The West

• The Midwest

• The Northeast

• The South

What is a common trade-off when companies like Amazon raise wages?

• Offering more part-time positions

• Increasing the number of employees

• Reducing bonuses and other incentives

• Lowering the minimum wage

What is one effect of large employers having more power over employees?

• They can reduce the number of employees.

• They can practice wage discrimination.

• They can increase wages without competition.

• They can offer fewer benefits.

How has tax reform affected net pay for employees?

• It has doubled the wage rate increase.

• It has had no effect on net pay.

• It has decreased net pay.

• It has reduced the wage rate increase.

What trend is observed in new business startups post-recession?

• A decrease in new startups

• A return to normal startup rates

• An increase in large business formations

• A decline in small business formations