Vote No Again

The proponents say this initiative is for affordability. We agree our community is not affordable for many of our residents. Unfortunately, the primary thing this initiative will do is simply make things more expensive – thus decreasing everyone’s affordability. If a higher minimum wage leads to affordability, we should already be affordable with the highest minimum wage in the nation.

If this were to pass, our minimum wage will be approximately $18.75/hr in less than 20 months. We will have four payroll increases over the next 20 months, on 1/1/24, 5/1/24, 1/1/25, and 5/1/25. This final date will put our minimum wage at $2.00 more than the state.

Two things will almost certainly happen – the cost of living (both goods and services) will increase, and wages will increase along the spectrum, not just at the lowest level. Every business/industry reacts to increased expenses differently – a restaurant may increase prices as they are always on thin margins, whereas a larger retailer may cut hours, shifts, employees, or operating hours. In either case, costs will likely increase. Wage compression will spread increases to those making well above the minimum wage.

In our recent survey of businesses, 90+% expect most employees to want the same increase. If you have an employee currently at $18.50 (a touch less than $3 more than the current MW), and in less than two years this person will be making the MW along with others they may have to train, this person is highly likely to want an increase as well. In fact, I am sure most people will be asking for that same $2 increase.

We can somewhat guess on what will happen. Life will become even more difficult for those with fixed, limited/low, or no incomes. Goods and services will become even more expensive. Most people will want and expect increased wages along the wage spectrum to help compensate for that. Some businesses will choose to close. While this is very hard to prove, I think so many of our businesses are on thin margins already. Businesses will choose not to locate here. Also, hard to prove, but look at how few high wage employers we have in our community. Our policies make and have made it very difficult for employers to succeed here, which is why we have a large percentage of retail, restaurant, and hospitality businesses – the same businesses who will be impacted the most.

While the idea of increasing the minimum wage may seem like a straightforward solution to address income inequality and improve the lives of low-wage workers, it is essential to consider the potential negative impacts on certain residents, businesses, job opportunities, and the overall economy. Striking a balance between fair wages and the sustainability of businesses is a complex challenge that requires careful consideration and analysis of the potential consequences. It is crucial for policymakers and voters to weigh both the intended benefits and unintended negative consequences when making decisions about minimum wage increases.