On a recent Fox News segment with Stuart Varney, I discussed the devastating impact government is having on American businesses and job creation, including minimum wage increases.
It’s simple math. If you raise the cost of something, business will use less of it. The restaurant and other retail industries hire many workers in the 16 to 24 year-old age bracket as the current minimum wage allows employers to hire people with little to no skills. This allows young people to learn and advance as they put in the work. If the wage is increased, businesses will hire fewer people, which will adversely affect millennials with little experience. In fact, according to the CBO from February this year, the minimum wage increase to $10.10 could cost 500,000 jobs.
It’s unfortunate that the Administration continues to see business as the bad guy. Higher taxes, increasing health-care costs, rising fuel prices and an un-navigable regulatory maze stymie business growth and discourages entrepreneurs to build, open and hire.