Hassebrook Challenges Ricketts Claim on Minimum Wage

Yesterday, the Columbus Telegram reported that Pete Ricketts said “many of the Nebraskans receiving the minimum wage of $7.25 per hour are high schoolers who need the entry-level positions to gain work experience and training. This opportunity would be eliminated if employers can’t afford to pay the higher wages.” Chuck Hassebrook has released the following statement, challenging Ricketts’ claim:

“My opponent’s claim characterization of the minimum wage as an issue primarily affecting high schoolers is out of touch. In truth, the proposed increase is critical to thousands of Nebraska families who rely on minimum wage jobs to make ends meet.

“Half of the workforce that makes minimum wage in Nebraska are over the age of 25, which means there are thousands of adult Nebraskans that work in jobs where they are not earning a living wage. People who work hard every day ought to be able to support themselves without needing the help of public assistance programs like food stamps or housing assistance.

“Twenty years ago, the average CEO earned 20 times the average worker. Today, the average CEO makes 275 times the average worker.  At McDonalds, the CEO makes 1,200 times the average worker. We’re in the midst of the largest gap in earnings in history.

“Many studies show that increasing the minimum wage has little or no effect on employment prospects of low wage workers. An increase in wages actually stands to benefit employers through reduced costs associated with employee turnover.

“In fact, in the first four years following the last minimum wage increase the U.S. economy created more jobs than were ever created in any four year period.

“A majority of Nebraskans support increasing the minimum wage, which just goes to show how out of touch Pete is with average, hardworking families. There is no reason that our tax dollars should go to subsidizing businesses that do not pay their workers a living wage.”

Chuck Hassebrook