What would you like to see today?
“Raising the minimum wage would be bad for the economy, and it would hurt small businesses.”
I hear it all the time. I’ll be on a panel, or a call, or speaking at an event on workforce development, and any time the raising the minimum wage comes up, someone says it.
As the CEO and founder of a small business with less than 50 employees, I care about how policies affect small businesses. I’m dedicated to voicing to lawmakers about investing in the growth and prosperity of small businesses and workers. As a startup founder, I know raising the minimum wage is good for business.
You don’t have to take it from me, though. Research has proven there’s one factor that’s most important when it comes to maintaining healthy businesses: making sure customers have enough money to buy what you’re selling. David Cooper, a Senior Economic Analyst at the Economic Policy Institute, stated in a recent report that: “the number one problem for businesses right now isn’t excessive labor costs, it’s a lack of demand.”
This is true in general, but in the wake of the COVID-induced recession, it’s especially true. Over the past year, we’ve seen skyrocketing unemployment, underemployment, and families across the country are struggling financially at rates not seen since the Great Depression. In fact, the Brookings Institution estimates that the average American won’t have the buying power they did in 2019 until 2023. Meaning, it will take four years for a regular consumer to regain the financial stability they had before the pandemic.
Bottom line? Yes, raising the minimum wage will result in an increased labor cost. No one’s denying that. However, raising the minimum wage will also lead to increased demand, higher worker productivity, and reduced employee turnover; benefits that far outweigh the costs of a higher minimum wage.
Here are nine points that highlight why raising the minimum wage is good for business:
We want to hear from you: Are you a worker or business leader who supports (or opposes) raising the minimum wage? Tell us why.
Email your thoughts on how an increase in the minimum wage would affect you, your workplace, or the economy to firstname.lastname@example.org and your quote could be featured in an upcoming blog as part of 1Huddle’s minimum wage series.
Sam Caucci, Founder & CEO at 1Huddle
Check out our plan that outlines a position that we at 1Huddle fight for everyday; for every worker.