Hartford (March 5, 2014) – The National Federation of Independent Business (NFIB) today will be available to comment on President Obama’s visit, during which he, Governor Malloy and several governors will argue for an increase in the minimum wage. In the meantime, NFIB has assembled the following facts against which their assertions can be held:
Their Argument (Malloy): the vast majority of minimum wage workers are trying to raise a family.
Fact: According to the White House (WH Power Point Presentation, Slide #4), only one quarter of minimum wage earners have children Note that the White House date doesn’t indicate how many of those parents are sole providers/main bread winners.
Fact: According to the Bureau of Labor Statistics (BLS Table 1), only 3.8 percent of hourly paid women over 25 (likeliest to have families) earn the minimum wage or less (plus tips).
Fact: According to Bureau of Labor Statistics (BLS Table 1), 2.9 percent of hourly paid workers over the age of 25 make the minimum wage or less (plus tips).
Their Argument: All the research shows that raising the minimum wage doesn’t affect employment.
Fact: Plenty of academic research exists that indicates the opposite. One landmark study analyzed other research conducted over decades to find that the preponderance of data shows a decline in employment. This economic case study on New York’s minimum wage shows a significant effect on jobs. Additional research debunks studies claiming to show no impact on jobs. For anyone interested in verifying the advocates’ claims, there’s also the Internet, in which there is no shortage of studies on the minimum wage. What can be said as a matter of fact is that the claim – all the research shows we’re right – is silly on its face.
Fact: Youth unemployment in Connecticut is nearly three times the national average. Many small business owners say they can’t pay inexperienced workers as much as older workers. Raising the rate to $10.10 could put young workers at a deeper disadvantage.
Their Argument: Raising the minimum wage is good for the economy because big companies like The Gap and Costco have done it.
Fact: The vast majority of employers in Connecticut are small businesses, according to the Office of Small Business Advocacy, US Department of Labor. Not all of them can keep up with The Gap and Costco, which are huge corporations with hundreds of locations on multiple contents and hundreds of millions in annual sales.
To learn more about NFIB please visit www.nfib.com.