Employers warn that minimum wage increase will reduce employment, Senator refuses to listen

Some employers fear minimum-wage hike | delawareonline | The News Journal

Dukart said his company, which employs about 700, has very few workers earning minimum wage, and those who do usually get a raise within a year. Nonetheless, the proposal would drive up his labor costs for those earning the minimum and put pressure on him to increase other wages.

“From a business standpoint, we’re getting hammered on every end,” Dukart said. “When your labor increases, so does your payroll tax and workers’ comp, and it just goes on and on and on.”

Saul Hoffman, chairman of the economics department at the University of Delaware, said most economists agree that minimum-wage hikes cause some employers to cut back on hiring, making it harder for some workers to find jobs.

“If employment is lower, somebody isn’t getting a job who would otherwise get a job,” Hoffman said. “We don’t see a layoff necessarily, but we just see a position not getting filled.”

Dukart said a business can never afford to have an incompetent employee, but in the good times a boss might have “more of a heart.”

“When times are pretty tough, you can’t afford to have a heart as much,” Dukart said.

Marshall rejected the argument that a minimum-wage hike would result in a loss in jobs, saying the evidence from previous increases shows that Delaware has not lost jobs.

What Marshall fails to understand is that we can’t see how many jobs went uncreated because of the previous increases. It’s this invisible, but real nonetheless, job loss that we should seek to avoid. And a job not created is an opportunity for someone lost, which reduces their work experience, which reduces their future income potential. The surest way to hurt the poor is to keep them from getting jobs.

Think of it this way: when gas prices go up, we try to use less gas. When electricity costs more, we make sure to turn the lights off when we leave the room. Is Senator Marshall denying the laws of economics don’t apply to jobs? That somehow employers are exempt from behavior we all practice in our daily lives? Raising the minimum wage is bad economics, bad logic and bad for the poor while appearing helpful. So naturally Democrats love it.

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