WAGE HIKE GOOD FOR THE ECONOMY? MAINE’S REAL SMALL BUSINESS ORGANIZATION BEGS TO DIFFER
BANGOR (July 29, 2015): Today the state’s largest and most
prominent small business organization, the National Federation of Independent
Business (NFIB) is looking past the smoke and mirrors of this morning’s rally
and focusing on the long term, burdensome economic impact that raising Maine’s minimum wage will have
on small business owners and the people that they employ.
“Expecting companies in some of the most economically
distressed parts of our state to absorb the additional cost to $12 an hour for
entry level, minimum wage jobs is preposterous,” Said NFIB Maine State Director
David Clough. “The impact will ultimately reduce a small business owner’s
ability to hire additional people, leaving fewer jobs in our state when we
should be increasing employment opportunities.”
Studies show that raising the minimum wage rate from $7.50
to $12 an hour will result in an additional cost of $10,000 per full time job,
something most small employers in Maine will have a hard time covering.
“What proponents of the raise don’t tell you is that most
small business owners already pay higher than the minimum wage and simply use
$7.50 as a starting point for entry level or seasonal positions. By forcing a
wage increase on those positions, small businesses will no doubt raise prices
and look for ways to trim payroll costs.
The additional expense must be paid for somehow.” Continued Clough,
“NFIB and its thousands of members in Maine will not sit idly by while a
handful of activists attempt to crush our fragile economy.”
