New White Paper Warns Against Dramatic Minimum Wage Increase

MinWageGreat Intentions, Bad Results: The Problem with a $15 Minimum Wage in America

Experts Weigh In, Urge Caution for Sake of Working Americans

Express Employment Professionals released a new white paper today, staking out a position on whether to raise the minimum wage to $15.

Great Intentions. Bad Results. The Problem with a $15 Minimum Wage in America” draws on the real-world experience from Express experts across the country and outlines the many negative consequences of a significant minimum wage increase.

There are serious potential consequences to raising the minimum wage to $15 that cannot be overlooked. As the paper outlines, these include:

  • Fewer job opportunities for young workers
  • The increased reliance on automation and the displacement of workers
  • Decreased hiring, especially by small businesses

Surveys on the minimum wage also reveal concerns among business owners—and even among the unemployed. An Express survey of businesses found:

  • 37 percent said they would increase the price of goods or services
  • 30 percent said they would eliminate positions
  • 20 percent reported that they would increase other wages in their companies

An Express poll of the unemployed conducted by Harris Poll earlier this year found:

  • 52 percent of the unemployed said raising the minimum wage to $15 would decrease the number of jobs
  • 20 percent said it would create more jobs
  • 27 percent said it would have no impact

Express is issuing a clear call to action to lawmakers and the general public:

  • Pay attention to the unintended consequences
  • Avoid cookie cutter solutions
  • Focus on growth, and wages will follow

The paper pulls from research and case studies on the topic and also features insights from Express franchisees from multiple regions and metropolitan areas, including:

  • Bellevue, Washington
  • Birmingham, Alabama
  • Utica/Rome, New York
  • Denver, Colorado
  • Salt Lake City, Utah
  • Cheyenne, Wyoming
  • Las Vegas, Nevada
  • Jackson, Tennessee

Download the full White Paper

“I think people calling for a higher minimum have the very best intentions. Unfortunately, when government tries to raise wages artificially, some people will win but many people will lose,” said Bob Funk, CEO of Express, and a former chairman of the Federal Reserve Bank of Kansas City. “People deserve a raise, and the best way to provide it is through a growing economy where workers are in high demand.”

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