Supporters of an effort to increase the minimum wage in Nebraska believe they have more than enough signatures to get the issue on the November ballot. The measure would increase the minimum wage from the federal level of $7.25 to $9 by 2016. Now Nebraska Taxpayers for Freedom will do their best to defeat the proposal. President Doug Kagan says this will have a huge negative impact on businesses, consumers and employees.
Kagan says business will have to either increase prices to pay for the wage increase and that will hurt every consumer. He has no doubt that unemployment will increase because businesses will reduce their workforce and/or cut hours of employees to decrease their payroll expenses and job creation will become a thing of the past.
Kagan says Nebraska will also see “wage compression”. That is when workers making just above the minimum wage demand a pay increase as well.
Nebraska Taxpayers for Freedom plan a statewide public speaking tour to inform residents about the negative aspects of this proposal. They also plan to target social media to spread their message.