The question of whether to let local governments set their own minimum wage isn’t really about policy. It’s about politics. It’s about people’s emotions, not economics.
[“Op-Ed: Give St. Louis wage a chance—you just might like what you see,” April 4]
The argument in favor of a wage increase boils down to this: It’s impossible to raise a family on $7.25 an hour, which is the federal minimum wage.
The fact is that raising the minimum wage by even a dollar or two invariably hurts the people it’s meant to help—the young, people just entering the workforce and those with no or limited skills.
That’s why my association, the National Federation of Independent Business, supports HB 1194 and HB 1193. The measures would restore a 1998 law that granted the legislature the sole authority to set a state minimum wage.
That law was struck down by the state Supreme Court, which said local governments could set their own, higher minimum wages. We believe the ruling was incorrect and sets the stage for a patchwork of local ordinances that creates confusion for employers, especially small businesses.
Thanks to the Supreme Court’s questionable decision, employers in St. Louis can be jailed for 90 days if they pay workers the state minimum wage. We believe it’s wrong to punish employers for following state law.
We believe employers of all sizes need the freedom to run their own businesses.
It comes down to this: If you raise the minimum wage, then you can’t afford to hire as many people, and that means you’ll be a lot choosier about the workers you do hire. You can’t afford to take a risk on people with no skills or experience.
Research backs that up. Economists at the University of Georgia and San Diego State University found that raising the minimum wage doesn’t do anyone much good, although I would argue it probably helps a few cynical politicians score points with certain voters.
One of the economists who wrote the study, Robert Nielsen of the University of Georgia, said, “Regardless of who is looking at it … almost no one finds any positive effects for helping families through minimum wage increases…. As a policy tool, it doesn’t reach the right people.”
In fact, about nine out of 10 workers who benefited from the last increase in the federal minimum wage lived in households with incomes that were at least two times over the poverty line.
Besides, the fact is that 95 percent of all employers in America already pay more than the minimum wage. Those that pay the minimum wage simply can’t afford to pay more for those positions.
When the government forces new mandates on employers, it removes the flexibility they need to design compensation packages that work best for their individual situations.
The Missouri Senate needs to pass HB 1193 and 1194 and send it to the governor. The very thought of having a different minimum wage in multiple jurisdictions across the state would be a nightmare for the entire business community.
For those that don’t believe that this would have a detrimental effect on our economy, consider the fact that St. Louis County is right next to St. Louis City and State Line Road is all that separates Missouri and Kansas. So, will we like it if we try it? I seriously doubt it.
Brad Jones
Missouri State Director of the National Federation of Independent Business
