I also employ multiple people, and we provide pretty good compensation, but I've still had people asking for larger raises.

I don't mind people doing that at all, I'd rather them let me know if they are unhappy with their compensation so I can make a business decision instead of them just jumping ship.

But, it's also important that you know your worth for good or for bad. If you are an essential part of the business operating, you have value and leverage. If you are already making more than other more productive team members, and the business is struggling to make a positive ROI on your salary, asking for more money is just going to make them start planning on replacing you.

I've had it go both ways, vital hard working team members that I've immediately increased their rate to meet what they wanted; OR Dead weight entitled employees completed disconnected from reality, not realizing we are already struggling to make the case to keep them on the team.

I think that you should thank him. Times are tight right now for a lot of folks. But you should also not be afraid to ask for what you need. It is amazingly hard to find good employees right now. If you are good at your job and show up regularly you are probably worth more than he can afford to pay you. Hopefully you guys can meet in the middle somewhere.