Thousands of Virginia Jobs at Risk After Democrat Governor Signed Minimum Wage Hike, Economist Warns
by David Lindfield
An economist is warning that Virginia’s newly signed minimum wage law could backfire, arguing the policy may lead to job losses and higher prices rather than improving affordability for workers.
Rebekah Paxton, research director at the Employment Policies Institute, warn sthat businesses will be forced to make difficult decisions as labor costs rise under the new mandate.
Businesses Face Tough Choices as Labor Costs Rise
“I think something that we’ve seen in coverage of this bill and how this law in Virginia was that this is something that needed to be done to improve affordability for Virginians,” Paxton told Fox News.
She warned that higher wage requirements don’t automatically translate into higher revenue for businesses.
“They have to decide, because the cost of labor has now gone up over just a few years,” she said.
“Do I have to reduce the number of positions?
“Do I need to shorten the number of hours I’m giving the people I have on staff?
“Do I have to raise prices to try to accommodate the difference in labor costs?
“Just because the minimum wage is going up doesn’t mean their sales are increasing by default.”
Governor Defends Policy as Boost for Workers
Virginia’s Democrat Governor Abigail Spanberger signed the legislation in April.