Rep. Pete Olson (TX) recently wrote a blog post expressing why a minimum wage increase will hurt the economy. Read a excerpt here:
Today, another burden is being placed on America’s small businesses. Effective on this date is the third installment of the increase of the minimum wage that was passed in 2007. Once again, our federal government has provided not a help, but a hindrance to our economic recovery.
When the three phase minimum wage increase was initially signed into law in May 2007, the unemployment rate was 4.5% and when the first phase went into place the unemployment rate was 4.6%. Today it stands at 9.5%. At a time of record deficits, uncertainty of increased taxes and looming prospect of government takeover of the healthcare system, and a national energy tax, small businesses simply cannot afford this final wage increase.
Yesterday, I introduced H.R. 3309, the Small Business Job Security Act. My legislation will delay the third and final stage of the federal minimum wage increase on July 24, 2009 for one year. At that point Congress should reassess the economic climate taking into account the unemployment rate. Because it takes effect today, if passed after the fact, the minimum wage would revert to $6.55, the rate it was yesterday.