By Mike Thayer
Rod Sullivan has no shame. He will say and do just about anything to further his agenda..... More government.
Here's his latest on the minimum wage hike county supervisors have forced upon communities, from his blog Sullivan's Salvos:
*More On The Minimum WageI continue to get questions on the impact of the minimum wage, and I continue to tell people I believe it will be a good thing for the local economy. But I am already seeing several logical fallacies emerging in the arguments I get from opponents.Because many folks clearly do not understand the difference between anecdotes and data, I’ll clear it up ahead of time. Let’s begin with this example: Some claim an increase in the wage will cost jobs. There are lots of studies out there that show this is NOT true. (But they will keep repeating the lies.) Here is what will happen:The minimum wage has not yet changed. Yet some businesses are closing, while others are opening. The same thing will happen after the minimum wage is increased. It is part of the normal churn of our economy. But THEN opponents will have a bogeyman – they can blame the wage increase! In reality, the anecdote of what happens in one business is just that – an anecdote. We will need to review the whole sample before we know if there was an effect on overall employment. (Again, studies show little effect.)
Similarly, increased wages result in increased consumer demand, which leads to increased economic activity, which leads to increased hiring. So you’ll probably see ten North Liberty businesses hire two extra people each, and ten businesses hire one person each. Then a business will close, and 15 jobs will be lost. Critics will blame the wage increase. But what critics will not say is that there has been a net increase of 15 new jobs in town. Trust me – this line of attack will be starting soon.
Clearly, Rod Sullivan doesn't understand the difference between anecdotes and data, otherwise he would have used some actual data in his blog post to support his claim that "...increased wages result in increased consumer demand, which leads to increased economic activity, which leads to increased hiring." That's all horse manure and Sullivan didn't cite ONE source!
But that's how Sullivan operates, you're supposed to take his horse manure at face value. He is a county supervisor after all... His rhetoric isn't factually based, it's emotionally charged.
Well here's some DATA, which debunks Sullivan's B.S.
An employer who has 20 employees making minimum wage will see a $10,000 annual increase in wage costs for every 25 cents the minimum pay is raised, according to the Employment Policies Institute. According to the U.S. Chamber of Commerce website, small businesses are least able to absorb the thousands of dollars in additional labor costs that a minimum wage increase creates. Some solutions that small businesses can employ include reducing staff or cutting costs in other areas such as marketing.
The effects of the minimum wage on company bottom lines can cause a rise in consumer prices, according to the Balanced Politics website. The company profit margin is a financial indicator that is reported to share holders and used to determine the financial health of an organization. If small businesses are faced with an increase in the minimum wage, they will need to find a way to absorb those extra costs and preserve their profit margins by raising prices to the customers.