I may no longer be in office , but as a private citizen, I like you, still have the ability to shape policy. Today, I joined with countless other Nevadans to oppose a job-killing bill that would cost us jobs and opportunity in our community.
As a business owner, I know first-hand the negative effects of an artificially high minimum wage. An artificial minimum wage actually hurts the very people it is purported to help. Every business owner realizes that employees must create more value to their company than they cost the company. If the employees do not create the value, then a business cannot stay in business. Unlike government, that can issue more and more debt and create its own money, small businesses must have more money coming in or being generated than it has expenses. In short, income must exceed expenses to stay in business.
With these proposed minimum wage hikes (AB 175 & SB 106), many businesses will be unable to absorb the increase in expense and will be forced out of business.
According to a report last week by CNN, a hike in the minimum wage to $10 an hour that took effect on January 1st in Arizona “is causing some small businesses to struggle, even forcing some to close up shop.”
The story continues…
“Many businesses are raising prices, but others like one deli owner in Tucson say it’s too much. Dean Greenberg says after nine years, the new minimum wage was the last straw before he shut down the deli, laying off 43 employees in the process.
“’So, there are a lot more memories and emotions there than it was doing as a business,’ Greenberg said. ‘I hired so many kids that I coached. I mean it was like the way they got a job, you know. And so at the end of the day that is what’s sad.’
“According to a Tucson Metro Chamber survey, 13 percent of businesses say they are closing their doors for good because of the wage hike.”
The facts are clear. This minimum wage hike is not good for Nevada business or jobs creation.
Please join me every Sunday 11:00 AM – 12:00 PM for a legislative update on the Haines & Krieger show, KXNT News Radio 840 AM.