Regarding the recent discussions about the minimum wage on the municipal candidates forums, I am unaware of any movement to try and raise the minimum wage at the local level. It is a subject worth discussing, however, because, as one of my favorite sayings goes, “You can’t solve a problems unless you understand it first”. Having a rational discussion about the minimum wage will help us to understand some of the problems in our local economy and we will certainly learn something useful from such a discussion. For instance, I am pretty certain that there are some businesses in Grant County that would have a problem if the minimum wage was raised. But the first question that comes to my mind is, “Why is that? Is there something that can be done to make those businesses more profitable so that they could pay more than minimum wage”. In my opinion, we don’t want a “minimum wage economy”, we want better than that. What would be ideal is if our economy was strong enough that no business needs to pay a low minimum wage.

 

In a rational discussion it is all important to identify what is fact, what is opinion, and what is misinformation so that the real problems can be solved. At the recent EDA Roundtable, Scott Terry, of the Silver City-Grant County Chamber of Commerce, is reported to have stated that Santa Fe’s high minimum wage prevented Costco from opening a store there (not that we have any need to consider Costco opening a store here!). That turns out to be misinformation, as a Costco rep said that minimum wage is not usually an issue for them, since their starting wage is higher than minimum wage.  Here is a quote from http://www.bizjournals.com/albuquerque/print-edition/2012/03/23/santa-fes-minimum-wage-highest-in.html?page=all, "Brackley said Santa Fe has a more expensive cost of living, but not the highest in the nation. He maintains the living wage is hurting business recruitment. He and others blamed the living wage for Costco not committing to Santa Fe.

“They have simply said they won’t come,” Brackley said. “I would guess that the minimum wage played a part in it.”

However, John Matthews, vice president of human resources for Costco in Washington state, said the company’s entry-level people earn at least $11 an hour, so such local wage levels are generally not a big factor."

Turns out that Costco is a business that is thriving enough so that the minimum wage is not an issue. It is important that we try and keep our community discussions as factual as possible, and to work to substantiate our opinions with facts, and avoid allowing untruths to remain on the table.

 

Gordon West

Silver City