CONSERVATIVE PARTY of NEW YORK STATE 486 78th Street, Ft.

Hamilton Station, NY 11209 (718) 921-2158 Voice * (718) 921-5268 Fax

2013 Legislative Memo In Opposition to
A. 38 Wright/Silver (and all similar bills) Purpose: Would raise the statutory minimum wage from $7.25 to $8.50 an hour on and after January, 2014 and provide that on each January 1st thereafter, the rate shall be indexed to inflation. Party Position: New York States economic growth is stagnant, especially in upstate; the unemployment rate in New York is 8.3%, raising the minimum wage will do little to grow employment in New York State, in fact, statistics show increasing the minimum wage produce decreases in hours worked and a drop in employment for less-educated New Yorkers. Many in government believe that raising the minimum wage is the only way some people will get increases, however a recent study by Drs. William Even and David Macpherson of Miami University of Ohio and Florida State University, respectively, show that wage growth among minimum wage employees is actually quite robust. Part of what they discovered is that a strong labor market actually helps raise the poverty level. In another recent study by Aaron Yelowitz, University of Kentucky, based on San Franciscos high minimum wage, the results present a cautionary tale for cites that are considering intervening in the labor market: although well intentioned, forcing firms to pay higher wages and other compensation harms precisely those workers that the laws are intended to help. This legislation seeks an artificial intervention in market forces and all of the economic data available shows how doing so weakens the economic growth and prevents those who really need jobs from getting them. The Conservative Party urges the Members of the NYS Legislature to allow for the free market to determine wages and reject this and all similar proposals. For more information on how government proposals to increase the minimum wage harms those it purports to help go to www.minimumwage.com LM 2013-02