Minimum wage hike will do more harm than good
New York State Secretary of State Cesar Perales makes raising the minimum wage sound so easy. But there are repercussions. Who’s going to pay for it? We are, of course, through taxes or higher cost of living. He suggests that when workers’ wages are raised to $10.50 per hour from the present $8.50, they are going to spend it. Unfortunately, that’s probably true. The minimum wage was designed to give new, inexperienced workers a place to start gaining experience. It wasn’t designed to support a family for years.
The minimum wage hike will hurt the small businessman disproportionately more than any other group – the very group minimum wage workers depend on. It will cause the small businessman to raise his prices or lay off workers. Raising prices may be inflationary. Laying off workers may perpetuate an economic slowdown. The only people who benefit from this move are the politicians.
Anthony F. Frandina