Raising the minimum wage puts both jobs and businesses at risk

On April 14, Gov. Mark Dayton announced that the state minimum wage will be increased to $9.50 an hour. Although people in the state of Minnesota do work hard and deserve fair pay, minimum wage is not the way to raise people out of poverty. I would like to warn the public of the issues that continued increases in minimum wage pose.

In February, The New York Times highlighted Dolores Riley from New Jersey. She owns a small day care center in the state and runs it as a small business. The state of New Jersey increased the minimum wage from $7.25 to $8.25 an hour earlier this year. For Dolores, this has the potential of being a huge problem.

Now that the minimum wage is set at $8.25, her payroll expenses have the potential of going up by $10,000 to $15,000 dollars per year. She fears this could mean the possible loss of her business. The hard-working citizens of Minnesota soon could become like Dolores.

The minimum wage poses a serious threat, including the potential loss of businesses and jobs.

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Comments (2)

  1. Submitted by Ray Schoch on 05/08/2014 - 12:38 pm.

    Get serious

    Ms. Niemeyer ought to try living on $7.25/hour for a few months to get a feel for it before she defends the right of a New Jersey employer to pay starvation wages. Even I, definitely not a native of Minnesota, can tell her that persuasive examples to support her dubious viewpoint are likely to have to be from Minnesota, not New Jersey.

    Presumably, these “hard-working citizens of Minnesota” are the same ones usually criticized by right-wing politicos because they’re living in poverty. Somehow the connection between poverty and low wages continues to elude so many people who like to call themselves “conservative.”

  2. Submitted by Greg Kapphahn on 05/09/2014 - 07:49 am.

    “She Fears… the Loss of Her Business”

    Pardon me for challenging the ideology behind this letter, but providing ONE anecdote of a SINGLE business that might struggle (likely on a very temporary basis) due to an increase in the minimum wage,…

    and whose owner “fears” she might have to shut down (but will VERY LIKELY be proven as wrong as all those good folks who FEARED what Obamacare would do to their health care),…

    is NOT a compelling case,…

    especially when so many studies show a net benefit to the economy of areas with a higher minimum wage and cross border studies show zero job loss when an area with a higher minimum wage adjoins one with a lower minimum wage.

    It has been clear for quite some time now that our state Chamber of Commerce and their “conservative” Republican allies don’t DO economics.

    They only do IDEOLOGY. Clearly Ms. Niemeyer is in that same camp.

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