Iowa Voice: Why The Minimum Wage Is A Bad Idea
Excerpted from this post at Iowa Voice
Senator Enzi is spot on with his take on the minimum wage....it is a killer to most businesses, and in fact it hurts people more than it helps.
I have worked for nearly twenty years in restaurant management. I see this every single time the minimum wage goes up: we raise prices to compensate for the rise in wages. We pass the cost on to the customer. We also end up not hiring as many people as we'd like, because we can't do that and still hit our labor cost goals. We may also end up letting some people go.
So two things happen when you get a hike in the minimum wage: First, people pay more because businesses pass the expense off to the consumer. In effect, the cost of living goes up. Now, is that beneficial to anyone who is actually making minimum wage? No.


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