Public popularity polls don’t consider small business economic realities
ANNAPOLIS, Jan. 11, 2019 – NFIB, which represents thousands of small business owners in Maryland, reacted today to a public opinion poll showing a majority favor a $15 increase in the state’s minimum wage. The following comments may be attributed to Mike O’Halloran, state director of NFIB in Maryland: “While a $15 minimum wage sounds appealing to the public, small business owners who employ a majority of the state’s workers know the economic realities involved, and they realize it will actually hurt the people it’s intended to help. Many small businesses will be faced with significantly higher labor costs that they simply cannot afford, and the result will be a reduction in workers hours and the elimination of jobs. “If these employers can’t raise prices because consumers won’t pay more in the marketplace, and their profit margin is slim, the next option is to reduce labor costs meaning fewer hours and fewer jobs. Unfortunately, if entry-level jobs disappear, that falls hard on those seeking their first job or trying to re-enter the job market. “The Governor’s concerns about the economic impact of a $15 minimum wage on Maryland’s economy are backed up by recent research. Even in Seattle, when that city commissioned a study as minimum wage rose to $13 on the way to $15, it found a significant reduction in the rate of new entries into the workforce, and those at the lowest rungs of employment saw no wage gain.” “NFIB’s report on a Maryland Senate bill to raise the wage to $15 in 2018 did project 99,000 job losses. The economic modeling was based on regional economic data, and it was performed by REMI, a firm that contracts with universities, corporations, state and federal governments, and both political parties. We hope that lawmakers read this and other research before voting on any bill.”
