[vc_row][vc_column][vc_column_text]Los Angeles County Supervisor Shelia Kuehl is leading a charge for the County of Los Angeles to raise its minimum wage from $9/hr to $15/hr by 2020. Originally scheduled for a vote during a hearing on Tuesday, June 23, the proposal was delayed until July 21st after a study produced by the Los Angeles County Economic Development Corporation (LAEDC) found that the minimum wage increase would have little impact on alleviating poverty. The TACC testified against the proposal during the hearing as part of a strong showing from the County’s business community. The wage would directly impact unincorporated areas of the County that are not chartered cities.
The TACC is strongly opposed to the proposal because of the multiplying effects it will have on the Torrance business community. A recent survey, which was published in the LAEDC report, of 1,000 business owners in LA County found 66% of businesses not impacted directly by the wage mandate (i.e., Torrance, the South Bay, etc.) will raise their wages to match the County’s in order to prevent the defect of their workforce to areas paying the higher wage. Well over 70% of the businesses surveyed stated they would raise prices to offset the added costs. The survey also found that 96% of businesses are forecasting a slight decrease in profits as the wage is implemented. When you connect this data together, the LA City (which is already implemented) and LA County minimum wage will cause regional price surges and stagnant economic growth– both critical indicators of stagflation. Although the survey found that the majority of businesses do not plan to cut jobs in the short run, the TACC is concerned that over the long run, in an economy of drastic price increases and little to no economic growth, high unemployment is certain to occur. Read the LA Times’ story here.
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posted by
Brandon Matson
Brandon is the Governmental Affairs Coordinator for the Torrance Area Chamber of Commerce. His primary responsibilities include facilitating the Chamber’s Governmental Affairs Policy (GAP) group, planning Chamber events with legislators, and facilitating the Chamber’s Political Action Committee (PAC). Feel free to contact him at any time.[/vc_column_text][/vc_column][/vc_row]
