Will a rising minimum wage promote more spending to make up for lost jobs?
QUESTION: Do you think San Diego’s rising minimum wage will promote enough spending to eventually replace some low-wage jobs destroyed by the policy?
Bob’s Answer: NO
Unfortunately, large minimum wage increases are job killers. Low-skilled positions that call for repetitive actions can and will be replaced by automation. Most small businesses want to provide their employees with fair wages and benefits but they can no longer afford it due to new laws. Small business drives the economy but government mandated wage growth will cause accelerated automation and has been referred to in some business circles as the “Robot Employment Act.”