Higher Minimum Wage? Small Business Doesn't Mind

Surprisingly, many small businesses support a higher minimum wage
A worker uses a rotary cutter to shape a piece of limestone in Columbus, Ohio Photograph by Ty Wright/Bloomberg

President Barack Obama’s recent proposal to raise the federal minimum wage from $7.25 to $9 an hour by the end of 2015 has an unlikely ally: a sizable swath of America’s 6 million small employers. Historically, lobbyists representing small business almost unanimously condemned any increases in the federal minimum wage, arguing employers would be forced to fire workers. Now, with public anger over income inequality deepening and economic research challenging the notion that higher wages suppress employment, a growing number of small business advocates support a hike.

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