A recent Issue Brief from the Grassroot Institute of Hawaii considers the effects of an increase in the minimum wage, concluding that the raise in the minimum wage currently before the Hawaii Legislature will not advance the goal of improving the plight of Hawaii’s working poor.
The report, entitled Four Things You Should Know About the Minimum Wage Debate in Hawaii, identifies four key areas of concern that are at odds with the objectives of the legislation. They are:
- Raising the minimum wage will benefit less than 4%of low-income working families.
- The current proposed minimum wage raise increases the costs of low-skilled labor by 39%.
- Raising the minimum wage will not lift working families out of poverty.
- Raising the minimum wage is expected to reduce teenage employment.
Though the intent of a minimum wage increase is to lift Hawaii’s working families out of poverty, the brief concludes that such legislation will do little to achieve this objective while placing a substantial burden on Hawaii’s small businesses and employers. In effect, states the brief author, “[a]n increase in the minimum wage would accomplish no more than to increase benefits for a handful of low-income working families at the expense of teenage workers and small business owners. The one thing that the minimum wage proposal does accomplish, however, is to effectively divert the political narrative away from the real causes of poverty and inequality in Hawaii.”
“The Grassroot Institute of Hawaii continues to advocate for free market solutions to our state’s economic problems,” states Dr. Keli’i Akina, President of the Grassroot Institute of Hawaii. “Unfortunately, the proposed raise in the minimum wage is nothing more than a band-aid solution that will burden Hawaii’s businesses without effectively helping our state’s working families. What we really need is a reduction in the obstacles that the state places on business and entrepreneurship in Hawaii, as a vibrant and growing economy is the best way to improve the situation of low-wage workers.”
You can read or download this brief in its entirety at: http://new.grassrootinstitute.org/2014/02/four-things-you-should-know-about-the-minimum-wage-debate-in-hawaii/.