Government mandating small businesses to raise their labor cost by increasing the minimum wage hurts everyone. Can the government legislate an increase in sales? No. Something must give.
Marginal businesses and marginal employees go first. And where do these ex-workers and owners go? They go on the dole. Who pays? You and I.
Many of the remaining employed get their hours reduced. Their disposable income diminishes.
Demand decreases if small businesses raise their prices to offset higher labor costs. Sales fall. More businesses go under. Price increases can also shatter the poor’s already precarious purchasing power.
Further, an increase in the threshold for entry level jobs prevents those who need a job the most from employment. One must first get on the economic ladder before they can climb it.
Economic growth equals good jobs. Everyone benefits. Governmental policies should be geared towards fostering economic growth, not stifling it with a forced increase in the minimum wage.