Argument Against I-151
- Read the fine print – I-151 is an ANNUAL price increase.
The dollar per hour increase is nothing but a Trojan Horse that hides the annual Consumer Price Index (CPI) increase. While focusing on the initial $1 per hour hike, proponents have slipped in an annual inflation factor that will cripple small businesses. And if double-digit inflation returns, that means double-digit labor increases – every year.
- Big city prices for Montana’s rural small businesses.
The CPI is calculated using prices from 87 of America’s biggest cities – not a single one of them in Montana! Nor are there any in three of our neighboring states. So, when the price of a latté increases in New York and Los Angeles, labor costs will go up in Eureka and Ekalaka. I-151 puts us at the mercy of out-of-state shopping trends.
- I-151 leaves small businesses vulnerable.
The unpredictable nature of the CPI increase seizes economic control from small business. Since wages are the largest expense in most businesses, any price increase has a significant impact. It is essential that small business owners set wages and raises based on merit, education/training, productivity, and other factors, not a volatile government mandate.
- I-151 is mandated inflation.
W hen faced with automatic pay hikes, business owners will be forced to increase prices every year. Simple economics require that costs, on a whole range of goods and services, will be passed on to consumers whenever possible. This will create a spiral of inflation, driving up costs. Montanans, especially retirees and those on fixed incomes, will pay a heavy price.
- I-151 takes a bad idea and makes it worse.
Government-mandated wage increases are a bad idea in the first place. Everyone would like to see people earning more money. But nearly four out of five Montanans feel increasing business activity and providing better education and training are better ways to raise wage levels, rather than increasing the minimum wage. The last few years, we’ve seen how the market reacts to an improved economy around Montana – higher wage levels for workers. And according to the latest government statistics, Montana has only about 5,000 employees classified as making entry-level or minimum wage. Many of those are restaurant workers not counting tip income. Others are new to the workforce and quickly move on to higher wages after proving their value.
- I-151 is BAD for Montana.
It’s a sneaky way to force an annual price increase based on out-of-state, big city prices. It leaves small businesses vulnerable and mandates unlimited inflation on Montana consumers. And it compounds a bad method of increasing wages.
Read the fine print – and vote NO on I-151!
The PROPONENT argument and rebuttal for this measure were prepared by Tim Kennedy - Small Business Owner - Mom’s Famous Soup and Salad; Jacquie Helt - President, Montana State AFL-CIO and Executive Officer UNITE HERE ! Local 427; and Steve Bullock, Director, Raise Montana.
The OPPONENT argument and rebuttal for this measure were prepared by Riley Johnson, Brad Griffin, Merisa Saunders, and Webb Brown. |
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