July 22, 2014

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Minimum wage increase might kill Kentucky jobs

By Tod Griffin, Kentucky Retail Federation

Kentucky lawmakers are considering HB 1, a proposal to raise the minimum wage to $10.10 per hour over a three-year period. Proponents of the measure cling to the myth that minimum wage increases are a way to address poverty. The sad truth is that a minimum wage increase fails miserably as an anti-poverty policy.  In fact, increases in the minimum wage reduce jobs and job opportunities especially for young, minority and low-skilled workers. Study after study shows that minimum wage increases cost jobs and stifle job creation.  But we don’t need academic studies to know that. Common sense tells us that if you increase the cost of something, demand decreases. Raise the cost of gas and people buy less gas. Raise the cost of movie tickets and people go to fewer movies. Raise the cost of employing someone and employers will employ fewer workers.