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Ask the Expert

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Higher minimum wage cuts jobs

Posted: August 10, 2009 4:39 p.m.
Updated: August 11, 2009 4:55 a.m.
 
Dear President Obama,

My husband and I are small business owners and employed up to 120 employees at one point.

As I understand it, you are requiring an increase in minimum wage.

Due to minimum wage increases we have decreased our staff accordingly to stay in business.

We realize the reason for minimum wage increases are too improve the standard of living for minimum wage earners.

The majority of our employees, and most minimum wage earners, are teenagers.

They are an important part of our economy and key consumers. With their minimum wage increases they are able to afford more songs on iTunes, more hours of texting, more Monster drinks, more Abercrombie and Fitch clothes, more Spicy Chicken Burritos, and most importantly, more cell phone upgrades.

While nothing would please us more, than to keep our staff at full capacity, it is impossible to maintain at the current minimum wage salary we're required to pay.

We are forced to decrease our staff every time the minimum wage increases, which, in turn, increases unemployment.

A reasonably thinking person might look at the current situation and cap minimum wage in order to keep as many people as possible employed.

After all, isn't that one of the biggest issues you say you're concerned about? The increase of unemployment numbers? Hmm.
What to do? What to do?

I realize, Mr. Obama, that you're the president and all, but common sense seems to have eluded you so allow me to leave you with one last thought.

Minimum wage is a starting point for workers. It was never meant to provide a middle class living for anyone.

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