Second, a number of studies have shown that an increase in the minimum wage led employers to cut back on both work hours and training. When combined with the loss of job opportunities, this means that many youths, especially among minorities, are prevented from reaching the first rung on the ladder of success. When employers are faced with eating the cost of the new government regulated wage or lying of workers, their first move will be to cut workers not hire more. It s hard to tell anymore. Once again if you want to help the American family, Mr. President, give us tax cuts not more self-defeating wage hikes.
More federal interference means more of a mess.
A mess that Main Street will have to clean up once again. Let the marketplace take care of wage standards. When you increase the minimum wage in a strong economy, as is the economy we have today, you hurt the small business owner when the economy takes a turn for the worse. When sales are declining, in time of recession, your wage costs are higher than the market will allow. The first thing the small business owner does is lay off workers and try to weather out the bad times.