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Why Senator Dan Innis Is Wrong In Opposition To Raising The Minimum Wage

Small Businesses want a higher minimum wage because it increases local spending and spurs economic growth.

Inflation from raising the minimum wage will be hardly noticeable to most people.

Here we go again. Senator Donna Soucy introduced a bill to raise the NH Minimum Wage to $12 an hour and Republicans are already trying to convince the people that raising the minimum wage is wrong.

Today Republican State Senator Dan Innis opined that we should let New Hampshire businesses raise wages and the government should not force an increase.

Innis talks about how raising the Minimum Wage hurts businesses and hurts Granite Staters who would be forced to pay higher prices for the increased cost in labor.

“Raising the minimum wage doesn’t transfer costs from wealthy businesses to the workers. It simply transfers costs to customers.”

Which is it Senator: Are the businesses going to absorb those costs or are the people of NH going to have to pay for them?

Don’t worry, I will tell you why both statements are wrong.

First lets start with the fact that the majority of minimum wage workers do not work for “small businesses,” they actually work for large multi-national corporations.

Nobody actually expects greedy corporations to absorb all of the costs of raising wages, even though all of them could. Most of these multi-national employers spend more money buying back their own stocks to artificially inflate their stock prices or paying out dividends to their shareholders. Both of these options push obscene amounts of money to the CEO’s and Executive Boards who are given millions of “stock options” as compensation every year.

Contrary to what Sen. Innis says small businesses actually support increasing the minimum wage.

“A July 2015 survey found that 3 out of 5 small business owners with employees support a gradual increase in the minimum wage to $12. The survey reports that small business owners say an increase ‘would immediately put more money in the pocket of low-wage workers who will then spend the money on things like housing, food, and gas. This boost in demand for goods and services will help stimulate the economy and help create opportunities,’” stated the Department of Labor in a recent blog post.

Even the Small Business Majority, a group run by small business owners who “focus on solving the biggest problems facing small businesses today,” have come out in support a national $12 hour minimum wage.

Increased labor cost will inevitably be pushed on to the consumers.

Oh the inflation! Milk prices will skyrocket, food prices will triple, restaurant prices will make going out to eat unaffordable….and so on and so on.

Yeah, we will hear all of that. The fact is that it is completely untrue.

Yes, there will be some minor inflation as a result of pushing wages up but it will hardly be noticeable.

Lets take Wal-Mart for example: If Wal-Mart raised their minimum wage to $12 an hour and passed all of the $3 billion in additional labor costs onto the consumer (instead of taking anything from their $12 billion in profits).

How much more do you think the average Wal-Mart shopper would be forced to pay? The answer is around $12.49 a year.

The average Wal-Mart shopper would end up paying less than $.50 cents per visit to ensure that all Wal-Mart employees made at least $12 an hour.   We are talking about $1 a month in additional costs. That increase will hardly break your wallet.

Lastly, can we finally stop promoting this lie that all minimum and low-wage workers are teenagers! The facts just do not support this and common sense proves it cannot possibly be true.

Think about it: when you buy a coffee on your way into work is it a teenager at the counter? Who is working the counter at McDonalds when you go to buy lunch?

Odds say that the answer to both question are that it is a woman over the age of 25.


Below is a snapshot of who in New Hampshire would be affected if we raised the minimum wage to $12 by 2020.  For example, 93,000 workers over the age of 20 would see a raise in wages, compared to the 22,000 below age 20.

(Data from EPI.org)

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