Growing the Economy is the Best Way to Raise Wages
(Washington, D.C.) – Fast food workers in many parts of the country today intend to walk out on their jobs in protest of low wages. Press reports indicate these workers support a doubling of the minimum wage to $15.00 per hour. This walkout – which is financed by the Service Employees International Union (SEIU) – is the most recent in a series of strikes in major U.S. cities. Supporters of the minimum wage increase for fast food workers say a higher salary is more important now because while fast food jobs used to be primarily taken by teens, many workers are now older and supporting families. Small business advocates argue that raising the minimum wage has the effect of forcing employers to increase their use of technology to replace personnel, reduce employee hours worked, or cut costs in other ways.
Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:
“While the struggle of these workers to make ends meet is legitimate, their complaints are aimed at the wrong target. Minimum wage increases come at a cost to job creators who will inevitably pass the economic burden on to clients and potential employees. Empirical research shows that such increases tend to reduce employment of the very ones requesting higher wages. The best way to get employers to raise wages is to create more jobs, grow the economy, put more money in the pockets of consumers and decrease regulations like the Affordable Care Act that are causing restaurants to lay off workers and cut hours.
More than four years into what the White House calls ‘a recovery’, family incomes have fallen, small businesses are hurting, and a shift in the job market has teens and older Americans competing for the same entry-level, low wage jobs. Fast food workers and others should demand a new approach from Washington – one that doesn’t rely on more borrowing, more taxes, and more regulation. Instead, we need to get government out of the way of entrepreneurs who know how to grow businesses and create economic opportunity.”
The LIBRE Initiative is a non-partisan, non-profit, national grassroots organization dedicated to informing the U.S. Hispanic community about the benefits of a constitutionally limited government, property rights, rule of law, sound money supply and free enterprise through a variety of community events, research and policy initiatives. Latinos have been disproportionately hurt by the economic downturn suffering from higher levels of unemployment and poverty. Our aim is to equip the Hispanic community with the tools they need to be prosperous. Connect with us on Facebook at The LIBRE Initiative and @LIBREInitiative on Twitter. Visit: www.thelibreinitiative.com.