Transcript
A recent U.S. Chamber of Commerce survey has confirmed that small businesses will have the hardest time absorbing the recent 70 cents increase in the minimum wage. The Chamber survey found that nearly 60% of small business owners will not be able to off-set the cost of the minimum wage increase leading to smaller profits. Nearly 30% of the businesses responded that they might have to raise their prices in order to cover the increase in the minimum wage. Over 20% will not be growing their staff as they had planned. The survey also found that nearly 34% of these companies have experienced other, non-wage related cost increases as a result of the revised minimum wage. Even this modest increase will hurt free enterprise, and the increases which will go into effect in 2008 and 2009 are likely to have an even greater negative impact.
Mandating that small companies pay minimum wage workers at a rate higher than what they can afford, is bad business. This survey makes clear that the raise drives up costs for everyone and that fewer jobs for low wage earners will be created.
--Marc Freedman
Director, Labor Policy
U.S. Chamber of Commerce | 
