Santa Fe Business Owners Hurting Over Minimum Wage

Most economists worth their salt oppose government wage mandates for the simple fact that politicians have much less knowledge about what a “fair” wage is than do employers and workers making decisions in a free economy. Santa Fe’s “chickens” of government-mandated wage inflation are now coming home to roost. In fact, business owners in the City Different are organizing to make a last stand against the 30-cent increase in the wage which is set to take effect at the end of January.
Business owners say that raising the wage in a strong economy is one thing, but with economic growth slowing dramatically generating increased unemployment and mainstream economists concerned about deflation, a free market would see wages shrink, thus naturally sucking marginal workers into the employment market albeit at marginally lower wages. Unfortunately, mandated wage rates disproportionately harms teens and low-skilled workers.
Santa Fe made a mistake in mandating wage rates that are far above market levels. Unfortunately, business owners and marginal workers will be the ones feeling the pain.

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