According to a new survey conducted by The Lucas Group, President Obama’s proposed minimum wage hike would have serious negative repercussions for American businesses, as well as their ability to create new jobs.
The survey of 400 business found that the effects of a 40 percent minimum wage increase to $10.10/hour would force many small- and mid-sized businesses, especially those in service-related industries, to “hike prices, fire employees, or eliminate new hiring altogether.”
Specifically, it would:
- Result in 3 percent of small businesses closing entirely.
- Force 30 percent of small businesses to curb hiring.
This new poll “mirrors the vast majority of economic studies that found that wage hikes undermine hiring,” directly contradicting the Obama Administration’s misleading claims that the wage hike would “have no negative impact” on job creation.
Michael Saltsman, research director at the Employment Policies Institute, likened these claims to President Obama’s now-infamous line, “If you like your [insurance] plan, you can keep your plan” in the lead-up to the ObamaCare rollout debacle. A ccording to Saltsman [emphasis added]:
“The evidence that a $10.10 minimum wage will cause job loss continues to pile up,” he said. “Americans can take the president at his word that a higher minimum wage won’t hurt jobs – or they can listen to the nonpartisan Congressional Budget Office and the expertise of actual business owners who will be affected by the law.”
Various other studies also dispute the administration’s claims that a hike in the minimum wage would not affect employment, including:
- A Wall Street Journal survey of 1,200 businesses, which determined that “nearly 40% would decrease hiring in the event of the massive wage hike.”
- The Congressional Budget Office outlook, which found that “Obama’s proposal could eliminate as many as 1 million jobs, while driving up the deficit by $5 billion.”
Not exactly the kind of economic stimulus our country needs.
Given the nearly “$140 billion in healthcare penalties” American companies will face over the next decade under ObamaCare, now is simply not the time to impose further hardships on employers which will only restrict their ability to create jobs and grow our economy.