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Monday, February 20, 2012

Talk about Raising the Minimum Wage Worries Small Business

“The [New York] State Assembly speaker, Sheldon Silver, and Mayor Michael R. Bloomberg recently announced that they wanted to raise the state’s minimum wage to $8.50 an hour, or roughly $17,000 a year. It would be a 17 percent increase, and the first since the previous federal increase, three years ago…. But Mr. [Charles] Cestaro [of Servco Industries] fears that if he charges more he will lose customers, a concern shared by many other business owners in fiercely competitive, low-skilled businesses like fast-food restaurants and some manufacturing…. ‘When the labor rate moves up, what happens to those people who don’t have a skill?.’” (New York Times)

Politicians need not care about consequences that are difficult to trace to their actions.

FEE Timely Classic
“The Minimum Wage: Good Intentions, Bad Results” by Roger Koopman