{"id":190379,"date":"2021-02-27T16:29:00","date_gmt":"2021-02-27T13:29:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/opinion-small-businesses-benefit-when-wages-rise\/"},"modified":"2021-02-27T16:29:00","modified_gmt":"2021-02-27T13:29:00","slug":"opinion-small-businesses-benefit-when-wages-rise","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/opinion-small-businesses-benefit-when-wages-rise\/","title":{"rendered":"#\n  Opinion: Small businesses benefit when wages rise"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36ec562dade\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36ec562dade\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-small-businesses-benefit-when-wages-rise\/#An_increase_in_the_minimum_wage_would_increase_consumer_spending%E2%80%94and_business_revenue-_by_billions_of_dollars\" >An increase in the minimum wage would increase consumer spending\u2014and business revenue- by billions of dollars<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-small-businesses-benefit-when-wages-rise\/#Increased_spending\" >Increased spending<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-small-businesses-benefit-when-wages-rise\/#32_million_would_benefit\" >32 million would benefit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-small-businesses-benefit-when-wages-rise\/#Unfounded_fears_of_job_losses\" >Unfounded fears of job losses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-small-businesses-benefit-when-wages-rise\/#Suggested_reading\" >Suggested reading<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/opinion-small-businesses-benefit-when-wages-rise\/#Zoe_Willingham\" >Zoe Willingham<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Opinion: Small businesses benefit when wages rise<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"An_increase_in_the_minimum_wage_would_increase_consumer_spending%E2%80%94and_business_revenue-_by_billions_of_dollars\"><\/span>\n  An increase in the minimum wage would increase consumer spending\u2014and business revenue- by billions of dollars<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000179476\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       For nearly a year now, small businesses owners have been struggling to keep their heads above water. As Congress looks for solutions to help the country recover from the COVID-19 crisis, supporting small businesses must be gave priority to and one of the best ways to do this is by raising the minimum wage to $15 dollars an hour.\u00a0<\/p>\n<p> <strong>Breaking <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>: <\/strong>$15 minimum wage won\u2019t make it into Biden\u2019s $1.9-trillion COVID-19 relief bill \u2014 lawmakers have other ideas<\/p>\n<div class=\"paywall\">\n       <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/portal.census.gov\/pulse\/data\/\" class=\"icon none\">About a third of business owners<\/a> report that the pandemic has had a large negative effect on their operations, with small business revenue down more than <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-02-10\/molly-moon-s-homemade-ice-cream-on-running-business-in-seattle-during-covid\" class=\"icon none\">30%<\/a> compared with before the coronavirus made it to the United States. Overall, there are <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-02-10\/molly-moon-s-homemade-ice-cream-on-running-business-in-seattle-during-covid\" class=\"icon none\">34%<\/a> fewer small businesses are currently operating in the United States than at this time last year. Small businesses are the backbone of the U.S. economy, employing nearly <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sba.gov\/sites\/default\/files\/advocacy\/2018-Small-Business-Profiles-US.pdf\" class=\"icon none\">half of all workers<\/a>. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"Increased_spending\"><\/span>Increased spending<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>A $15 minimum wage will drive increased consumer spending to the benefit of small businesses. At the same time, workers making a fair wage are able and willing to work harder and be more productive, generating more value for business operators. These factors are just a few of the reasons that studies show that raising the minimum wage grows the whole economy with <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/edlabor.house.gov\/imo\/media\/doc\/Testimony_Reich020719.pdf\" class=\"icon none\">negligible job loss<\/a>.<\/p>\n<p>Even before the pandemic brought the country to its knees, the substandard minimum wage in the U.S. presented a major structural economic weakness. Since it was last raised to $7.25 in 2009, inflation has eroded the spending power of the minimum wage by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.epi.org\/publication\/labor-day-2019-minimum-wage\/\" class=\"icon none\">17<\/a>%\u2014so a minimum wage worker today is earning just 83 cents for every dollar they earned 12 years ago. <\/p>\n<p>For context, today, a full-time, minimum-wage workers <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/reports.nlihc.org\/oor\/about\" class=\"icon none\">cannot afford to rent<\/a> a two-bedroom apartment anywhere in America. Even in Boise, Idaho\u2014one of the most affordable cities in the United States\u2014a two-worker household must make at least <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/livingwage.mit.edu\/metros\/14260\" class=\"icon none\">$15.94<\/a> per hour to support a child. <\/p>\n<p>Raising the minimum wage would provide instant relief to struggling Americans and correct longstanding inequities. A minimum-wage increase would take a bite out of the gender pay gap, as women still earn <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.americanprogress.org\/issues\/women\/reports\/2020\/03\/24\/482141\/quick-facts-gender-wage-gap\/\" class=\"icon none\">18%<\/a> less than men. People of color\u2014especially women of color\u2014are <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.americanprogress.org\/issues\/race\/reports\/2019\/08\/07\/472910\/systematic-inequality-economic-opportunity\/\" class=\"icon none\">more likely<\/a> to work low-wage jobs.\u00a0<\/p>\n<h6><span class=\"ez-toc-section\" id=\"32_million_would_benefit\"><\/span>32 million would benefit<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>An estimated <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.epi.org\/publication\/why-america-needs-a-15-minimum-wage\/\" class=\"icon none\">32 million Americans<\/a> would see their incomes rise, if the minimum wage were increased to $15 an hour\u2014providing an instant boost to the economy by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.epi.org\/blog\/now-is-still-a-good-time-to-raise-the-minimum-wage\/\" class=\"icon none\">stimulating consumer spending<\/a>. A $15 minimum wage by 2025 would\u00a0generate $107 billion in higher wages\u00a0for workers. A $1 an hour raise to a minimum wage worker increases annual household spending by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/tcf.org\/content\/commentary\/making-economic-case-15-minimum-wage\/?session=1;\" class=\"icon none\">$2,080<\/a>. <\/p>\n<p>Minimum-wage workers, more than anyone, are likely to spend their raise on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/tcf.org\/content\/commentary\/making-economic-case-15-minimum-wage\/?session=1\" class=\"icon none\">household necessities<\/a> that they were previously unable to afford like repairs and electronics. Research also shows that much of the increased spending would go to the small businesses that are hurting most\u2014<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nber.org\/papers\/w25761?utm_campaign=ntwh&amp;utm_medium=email&amp;utm_source=ntwg11\" class=\"icon none\">restaurants<\/a>.\u00a0<\/p>\n<p>In addition to spurring increased demand, higher wages return dividends to employers in the form of a more <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nelp.org\/publication\/12-minimum-wage-broad-benefits-workers-small-businesses-across-missouri\/\" class=\"icon none\">productive workforce<\/a>\u2014<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/piie.com\/publications\/briefings\/piieb15-2.pdf\" class=\"icon none\">offsetting<\/a> much of the predicted payroll costs. Workers that deal with stresses related to poverty are unable to perform their best work and they are more likely to fall ill and call in sick. In contrast, workers that earn higher wages are less likely to arrive late or miss work. They also tend to be more invested in their job, working harder and committing fewer employee conduct infractions. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Paying higher wages also reduces the significant costs associated with employee turnover, such as recruitment, administrative work, and training. These costs total about <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.americanprogress.org\/issues\/economy\/reports\/2012\/11\/16\/44464\/there-are-significant-business-costs-to-replacing-employees\/\" class=\"icon none\">one-fifth<\/a> of the worker\u2019s annual salary, which, for an employee paid the federal minimum wage, exceeds $3,000.\u00a0\u00a0<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Unfounded_fears_of_job_losses\"><\/span>Unfounded fears of job losses<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Critics of raising the minimum wage, often try to stoke fears by arguing that a minimum wage hike will result in higher unemployment. But an exhaustive body of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/academic.oup.com\/qje\/article\/134\/3\/1405\/5484905\" class=\"icon none\">economic<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=2705499\" class=\"icon none\">research<\/a> disproves this. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/equitablegrowth.org\/factsheet-minimum-wage-increases-are-good-for-u-s-workers-and-the-u-s-economy\/\" class=\"icon none\">Studies<\/a> of places that have increased the minimum wage have found <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/edlabor.house.gov\/imo\/media\/doc\/Testimony_Reich020719.pdf\" class=\"icon none\">insignificant impacts<\/a> on the number of jobs, positive or negative. <\/p>\n<p>Even sharp increases in the minimum wage have a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/irle.berkeley.edu\/new-cwed-study-low-wage-areas-can-afford-15-hr-minimum-wage\/\" class=\"icon none\">minimal impact<\/a> on employment levels. In the absence of major job losses, a $15 minimum wage would result in increased earnings among low-wage workers and a reduction in poverty and inequality as a result.\u00a0<\/p>\n<p>Lawmakers must recognize a $15 minimum wage as a crucial part of any post-pandemic economic recovery plan Sens. Bernie Sanders, Patty Murray, and Chuck Schumer, along with their House colleagues Reps. Bobby Scott and Pramila Jayapal, introduced a provision into the American Rescue Plan\u2014which is supported by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/investinamericanow.com\/wp-content\/uploads\/sites\/95\/SBAF-Feb-Covid-Survey.pptx.pdf\" class=\"icon none\">69%<\/a> of business owners\u2014that would raise the minimum wage to $15 gradually, starting at $9.50 in June and reaching $15 in 2025. <\/p>\n<p>It would also eliminate the subminimum wage for tipped workers, who make <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.dol.gov\/agencies\/whd\/minimum-wage\/faq\" class=\"icon none\">$2.13 an hour<\/a>, and disabled workers, who make <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.npr.org\/2020\/09\/17\/912840482\/u-s-agency-urges-end-to-below-minimum-wage-for-workers-with-disabilities\" class=\"icon none\">$3.34 an hour.<\/a> If the proposed minimum wage increase is enacted, it would give a raise to a total of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.epi.org\/publication\/why-america-needs-a-15-minimum-wage\/\" class=\"icon none\">32 million workers<\/a> and set the country on a path to equitable economic growth. It is especially urgent to act to raise the wage now to recognize the essential services that many low-wage workers provide during this time of crisis.\u00a0<\/p>\n<p>Raising the minimum wage to provide instant relief to workers and supplying urgent grants and other financing to small businesses like the American Rescue Plan proposes will help the economy work better for everyone. <\/p>\n<p>At a time when so many businesses are struggling, we can\u2019t afford to suppress wages and with it, consumer spending. A $15 an hour minimum wage is essential to supporting small businesses and building a strong, long-lasting economic recovery.<\/p>\n<p><strong><em>Zoe Willingham is a research associate with the economic policy program at the Center for American Progress<\/em><\/strong><\/p>\n<h6><span class=\"ez-toc-section\" id=\"Suggested_reading\"><\/span>Suggested reading<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p><strong><em>\u00a0<\/em><\/strong>\u2018I will continue h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ily shopping there forever\u2019: Costco customers react to retailer\u2019s new $16 minimum wage<\/p>\n<p>Low wages are just the start of the problems for millions of U.S. workers during COVID-19 \u2014 here\u2019s why<\/p>\n<p>U.S. Minimum Wages Have Already Jumped\u2014With Minimal Costs to Business<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Zoe Willingham\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Zoe_Willingham\"><\/span>Zoe Willingham<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D2BD14CE69D4%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Opinion: Small businesses benefit when wages rise &#8221; An increase in the minimum wage would increase consumer spending\u2014and business revenue- by billions of dollars For nearly a year now, small businesses owners have been struggling to keep their heads above water. As Congress looks for solutions to help the country recover from the COVID-19&#8230;<\/p>\n","protected":false},"author":1,"featured_media":190380,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-190379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/190379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=190379"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/190379\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/190380"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=190379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=190379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=190379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}