Saturday, February 1, 2014

Response to Obama SOTU

By increasing the minimum wage, Obama is not only hurting small businesses but also causing the unemployment rate to increase as well. For instance, Lee Greer, President of the Greer Company and owner of the Cheddar restaurants, believes that by raising the minimum wage his business and businesses like his will be in debt or most likely be bankrupt. Mr. Greer said that, “the very people you’re trying to help, who we are trying to help, just lose their jobs” (Greer, 2014)[1]. With the new minimum wage law, people will lose their jobs even though the intention and design of the law is to help those people who are facing poverty. Therefore by raising the minimum wage, many people will be left jobless due to companies trying to maintain the new minimum wage law and also looking out for the survivability of their companies and not being driven to debt or bankruptcy. Similarly, by increasing the minimum wage, Obama is increasing the unemployment rate. According to a recent study by the American Action Forum, if every state in the nation enacts Obama’s minimum wage law, there would be “over 2.3 million new jobs…lost across the country” (American Action Forum, 2014)[2]. The study shows that 2.3 million jobs would be lost for Americans if the minimum wage increases. As stated before, companies trying to adapt to Obama’s minimum wage law will cause many Americans to lose their jobs due to the fact that most companies need to be able to function without breaking the law and facing debt. Ultimately, Obama is hurting small businesses and their employees with his new minimum wage law.

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