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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.

Comments

Avatar for user 'HarryStreet'

HarryStreet | March 30, 2013 at 11:02 a.m. ― 1 year, 5 months ago

A whopping $9.25 to increase the minimum wage is not going to kill businesses. What is killing businesses is the cost of business licenses, insurance, worker's comp, rent, utilities, and the like that the government charges business owners. Our city leaders need to be kept in check and understand all these fees they charge businesses so they can stay in operation themselves are the problem. Once we (the voters) pull together and fix this we'll see improvement. And the business owners will no longer have an excuse to not offer living wages.

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