E&W Blog

A study published this week called President Biden’s minimum wage mandate a “death knell” for businesses.
 
This isn’t surprising. The Democrats’ radical, job-killing proposal could kill nearly 4 MILLION jobs according to the nonpartisan Congressional Budget Office.
 
This ill-timed political stunt from Democrats will fail to deliver their promises of bigger paychecks. In reality, it will result in significant job losses for millions of workers across the country and will shutter small businesses that are struggling to stay afloat due to COVID-19.
 
In case you missed it, Fox Business has more on this left-wing, job-killing scheme:
 
Biden's $15 minimum wage push could be 'death knell' for small businesses, job growth
By Megan Henney
January 28, 2021
 
President Biden's push to raise the federal minimum wage to $15 an hour as part of a broader coronavirus relief package could be a "death knell" for businesses still reeling from the pandemic, according to a new study published this week.
 
The report, authored by researchers at the University of Kentucky, Indiana University and Washington University in St. Louis, found that hiking the minimum wage hurts new entrants into the labor market, based on data from six states that increased their minimum rate.
 
When the minimum wage increased, businesses — particularly those making tradeable goods, such as the manufacturing sector — reduced the number of new workers they were hiring, the study found.
 
"While the overall number of low-wage workers declines following a minimum wage increase, incumbent workers are no less likely to remain employed," the report said.
 
Given that the U.S. unemployment rate is still hovering at 6.7%, Radhakrishnan Gopalan, one of the study's authors and a finance professor at Washington University in St. Louis, argued now is not the time to hike the minimum wage…
 
“Small businesses are especially hurting from the pandemic," Gopalan said. "The restaurant sector, which employs a significant number of minimum wage workers, and the retail sector are struggling. Raising the minimum wage now would spell a death knell for many small restaurants.”
 
A recent analysis published by the Congressional Budget Office, a nonpartisan agency, found that as many as 3.7 million workers could lose their jobs as a result of the minimum wage increase…
 
To read the full story, click here.