Minimum Wage Proposal Delivers Maximum Main Street Economic Pain
MADISON (April 28, 2015): Today, the National Federation of
Independent Business (NFIB), the state’s leading small business organization,
expressed concern over the introduction of legislation that would more than
double the current minimum wage rate in Wisconsin.
The legislation, introduced by Representative Melissa
Sargent, will hurt lower income, less experienced and educated workers, and
place significant financial burden on small businesses struggling with the
recovering economy, according to NFIB.
“At a time when Wisconsin is beginning to recover from the
great recession, this proposal would have a deep and disproportionate impact on
small business, and would dramatically limit the ability of small employers to
hire workers and sustain their workforce,” said Bill G. Smith, State Director.
Last year, the Economics and Finance Review released their
findings of a recent study that showed that “small businesses respond
differently to minimum wage hikes than large businesses” and that small
businesses pay for minimum wage hikes by passing on the cost to consumers
and/or reducing their labor forces.
“The bottom line is that someone must pay for the costs
associated with a government mandated increase in the minimum wage. Unfortunately, because a small business often
cannot pay these costs, they are paid for by the same individuals the minimum
wage is intended to help,” said Smith.
“Any increase in Wisconsin’s minimum wage will not only add
more stress on small businesses but will be passed on to hard working consumers
that are still attempting to economically recover from a very difficult time.
Today’s proposal is short sighted, simplistic, and misguided.” concluded Smith.
