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O'Connell: Las Cruces Chamber-Endorsed Candidates Question Phase 2 & 3 Of Minimum Wage Law

 Commentary:  Las Cruces Chamber of Commerce has endorsed four candidates for the City Council—Silva, Guzman, Van Veen, & Hall. They either outright oppose Phase 2 and 3 of city’s Minimum Wage increase ordinance or want further evaluation—which is code for stopping the Ordinance from fully going into effect. They want economic growth to occur on the backs of poorly paid workers. Some 85% of Las Cruces businesses have greater than 10 employees and most are Corporations like Wal-Mart and Home Depot or national franchises like McDonalds and Olive Garden, and they will not close if they have to pay their employees a fair wage.  Businesses like retail trade, food services, hotel and health care can’t be outsourced because customers are local and must be served here. For a few cents more, customers are not going to travel to El Paso for lunch or in-home health care.

When the Minimum Wage Ordinance fully goes into effect in 2019 it only amounts to $10.08 an hour—still below the poverty level. Another issue raised is that higher wages will hurt the local economy. Experiences with increased minimum wage in Santa Fe & Albuquerque--and by many scholarly studies across the country--show that what companies and businesses lose when they pay more is often offset by lower turnover, increased productivity and a more loyal workforce.  In conclusion--the fundamental law of capitalism is that if workers have no money, businesses have no customers. That’s why the widening income & wealth gap is not just a morale challenge, but an economic one also. Rising inequality creates a death spiral of falling demand, ultimately bringing everyone down.