Here is a copy of a letter sent to the local politicians. Let me know what your thoughts are.
Vote NO for raising the minimum wage. Studies have shown that raising the minimum wage increases unemployment. We do not need higher unemployment. I am not just some crazy constituent with an agenda; I have a degree in Economics and Finance, as well as, an M.B.A. I have done the research and have read the studies to support the evidence presented here.
The economic Law of Demand states that if prices rise, demand will decrease. The Law of Supply states that if prices rise, supply will also increase. A wage is a price paid for labor. The economic Laws of Supply and Demand hold true with labor as well. Therefore, higher wages increase the number of workers willing to work, but decrease the number of workers employers will hire.
Going further, many small business that are barely making a profit now, could be forced to layoff current workers (due to the increased cost), actually creating unemployment. They may even close their business. Studies have also shown, that the people who “need” a minimum wage suffer the most (teenagers, racial minorities, and low-skilled workers).
Yes, increasing the minimum wage may get you reelected to your position, but it will not help Pennsylvania’s economy or our local economy. Jobs will be lost. We need to reduce the cost of doing business in Pennsylvania and our local area.
We need a radical change in Pennsylvania. Eliminate the income tax (replacing it with a sales (consumption) tax) and change the formula for taxing businesses. This will promote investment into Pennsylvania. I do realize, that this is easier said than done, but it will work!