Opponents of Raising Minimum Wage Say It Would Mean Job Loss
Published On : 3/27/2013 9:29 AM
From : CCN
Categories : Local, State
Opponents of a bill that would increase California’s minimum wage have released a study that says the measure would mean job losses for many of the state’s small businesses.
The proposal would increase the minimum wage from eight dollars an hour to nine-dollars and 25-cents per hour over the next three years.
The National Federation of Independent Businesses study says depending on the rate of inflation, the bill could cost the state 68-thousand jobs over ten years. David Houston owns Barney’s Beanery in Los Angeles. He says he can’t afford the increased cost.
“So it would just squeeze the heck out of us. I did the same calculation and it would effectively absorb about half of my profits on a monthly basis if we went to 9.25, that 15-percent increase.”
In response, the Democratic Assembly member authoring the bill cites another study. It shows raising the minimum wage helps the economy by generating more consumer spending. He says neighboring west coast states have higher minimum wage rates.