Meadville Tribune (PA): Myths about the minimum wage

By Joe Tompkins
Meadville Tribune (PA), April 24, 2019

There’s been a renewed push to raise the federal and state minimum wage to $15 per hour and, naturally, the conservative pushback has been strong. ... Their reasoning plays more on fear than facts — myths that keep people at poverty wages. ...

Myth No. 3: Raising the minimum wage is bad for business because it raises prices. It’s certainly true that raising the minimum wage will increase labor costs, but that doesn’t mean prices have to go up. Even when they do, price increases are typically minimal, less than 1 percent, according to the Berkley minimum wage study. So, in effect, you might pay a few more cents for coffee and french fries.

Meanwhile, higher wages can mean lower turnover for businesses, which reduces the cost of hiring and training new workers. It also means more money in the pockets of people who need to spend it, which can increase business sales.

This is why organizations like Business for a Fair Minimum Wage and the American Sustainable Business Council, which represent tens of thousands of small businesses, endorse a $15 minimum wage. ... They know that profits don’t have to come at the expense of their lowest-paid workers. ...

Read more

Copyright 2019 Meadville Tribune

Share +