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:
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).
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).
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.
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.
Argument: Raising the minimum
wage is good for the economy because big companies like The Gap and Costco have
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.