Editor’s Note: Minimum wage hike kills business

Ingrid Jacques
The Detroit News

It turns out the economists and business owners who warned Michigan’s minimum wage increase would harm employment were right.

Gov. Rick Snyder signed the state’s wage increase earlier this year, after Republicans in the Legislature subverted a ballot initiative that would have increased the minimum wage to $10.10 an hour. Instead, the new law boosted the wage in September to $8.15 an hour from the former $7.40. By 2018, it will rise to $9.25.

While that’s still better than the Democratic-backed proposal, even the first boost to the minimum wage has caused some small businesses to close. Michael Saltsman, research director at the Employment Policies Institute, recently highlighted the impact on one such Michigan business in The Wall Street Journal.

That business, Tastes of Life in Hillsdale, is a restaurant run by pastor Jack Mosley. He said it was the wage hike, combined with several other factors, that forced him to close. Twelve individuals lost their jobs. His restaurant specifically employed people who most needed work, such as those rebounding from prison or drug abuse.

It’s a shame this business had to close.