JOB KILLING MEASURE INVADES RHODE ISLAND

PROVIDENCE (March 9, 2015): The National Federation of Independent Business (NFIB) is wondering who Governor Gina Raimondo is really trying to help after today’s press conference where she touted the states minimum wage increase and the so called assistance it will give to thousands of families in the state. Another higher minimum wage will unfortunately not primarily benefit the low income families she claims to be so concerned with. 

“We have seen state after state phase in a minimum wage increase on the basis that it will help low income families. Rhode Island has already increased the minimum wage in each of the last three years. The income gap should have at least been narrowed significantly by previous minimum wage increases,” Bill Vernon NFIB Rhode Island state director said. “But the only people that seem to be benefiting from a bump in minimum wage pay are part time workers from middle class families. What the Governor and other policymakers fail to understand is that the best way to help job seekers in the state is to make Rhode Island more hospitable to small business so that the private sector can grow and create jobs – jobs with higher than minimum wages.” 

According to a study conducted by the Rhode Island Center for Freedom & Prosperity when it comes to minimum wage workers in Rhode Island:

•             Over 80% were white

•             $61,299 was the average family income

•             Over 71% were part-time workers less than 35 hrs/wk; 30% less than 20 hrs/wk

•             Only 6% were married sole earners

•             Only 8% were single parents

•             Almost 60% lived with their parents or some other primary breadwinner

•             About 60% were 25 years old or younger; over 40% 21 or younger

“The Governor should be paying more attention to the economic facts and less attention to the big union rhetoric. Increasing the minimum wage will have an adverse effect on job creation and the ability for employers to retain employees,” Vernon continued. “We need policies like an earned income tax credit that will focus economic assistance on poor working families and assist small businesses grow and prosper, as opposed to job killing measures like minimum wage increases, no matter how well it plays to the cheap seats.”