Small Employers and Workers Disappointed by House Legislation Undermining Minimum Wage Ballot Initiative

Alaska̢??‰?s House of Representatives is considering legislation that seeks to undermine a minimum wage initiative slated to be considered by voters on the primary ballot in August. Removing this issue from the ballot doesn̢??‰?t do our state̢??‰?s primary job creators any favors. We know from scientific opinion polling that small business owners support raising the minimum wage because it will stoke consumer demand and bolster the economy and small firms.

HB 384 would prevent Alaskans from voting on raising the state̢??‰?s minimum wage to $9.75 an hour over two years and indexing it to inflation. Alaskans̢??‰۝69 percent of whom support raising the minimum wage, according to a poll conducted by Anchorage firm Dittman Research̢??‰۝worked to put this measure on the ballot, and they deserve the opportunity to vote on the issue.

What̢??‰?s more, Small Business Majority polled a random sample of small business owners across the country and found 57 percent raising the federal minimum wage to $10.10 an hour and adjusting it annually to keep pace with the cost of living̢??‰۝even higher than Alaska̢??‰?s proposal of $9.75.

More than half of small business owners (52 percent) agree increasing the minimum wage would not only help the economy, it would make low-income consumers more likely to spend money, driving up demand for small businesses̢??‰? goods and services. And a sweeping 82 percent already pay all of their employees more than the federal minimum wage, with 0nly 18 percent paying one or more of their workers minimum wage. Small employers believe it̢??‰?s not right that people working full time earn just $15,080 a year at the minimum wage, which is significantly lower than in the 1960s, adjusting for inflation.

As a former Alaska small business owner̢??‰۝I founded and ran a small commercial fishing business in Ketchikan and other communities for 22 years̢??‰۝I know small businesses̢??‰? No. 1 concern is consumer demand. When the demand̢??‰?s there, businesses thrive. An increased minimum wage in Alaska will inject more money into the economy, which will stimulate that demand. By raising the state̢??‰?s minimum wage, more Alaskans will have more money to spend at small businesses. This will help entrepreneurs create jobs, which further strengthens the economy, creating an economic domino effect. Lawmakers should recognize small business̢??‰? support of this issue, and allow Alaska residents to have the opportunity to vote on it come August.