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Opponents of Raising Minimum Wage Say It Would Mean Job Loss

Opponents of a bill that would increase California’s minimum wage have released a study that said the measure would mean job losses for many of the state’s small businesses.

The proposal would increase the minimum wage from $8 an hour to $9.25 per hour over the next three years.

The National Federation of Independent Businesses study said depending on the rate of inflation, the bill could cost the state 68 thousand jobs over ten years. David Houston owns Barney’s Beanery in Los Angeles. He said he can’t afford the increased cost.

“It would just squeeze the heck out of us," Houston explained. "I did the same calculation and it would effectively absorb about half of my profits on a monthly basis if we went to $9.25, that 15 percent increase.”

In response, the Democratic Assemblymember authoring the bill cites another study. It shows raising the minimum wage helps the economy by generating more consumer spending. He said neighboring west coast states have higher minimum wage rates.

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