A few weeks ago there were two articles in The Post-Journal regarding the minimum wage increases.

Both articles were well written and suggested that the minimum wage laws would have deleterious effects on the economy and negative effects on those who are in the work force or on those looking for employment. I agree with both articles about the reverse effects the mandates will have. The one thing that both articles lacked was substance. I am a business owner and have been in business for 28 years. I am also the president and chief financial officer of a substantial corporation with around 30 employees. To those of you who think that these wage law increases are the best thing that has happened to you since the aerosol can I respectfully disagree. You may get a few bucks more in your pocket however your siblings will eventually suffer the negative effects and consequences when they start looking for employment.

When companies are forced to pay wage increases, or any other mandate handed down from the government that has increase cost consequences, we go into survival mode and generally will react in a couple of ways. We will cut expenses or increases our prices or both. If you are thinking increasing your market share is a good option you could become a wealthy individual showing companies how to do that because many companies are limited to small markets. Those companies that do not make the necessary adjustments will inevitably fail. This could have a negative impact on the community and I will explain how.

Governor Cuomo’s minimum wage increases have cost our corporation about $35,000. Since we are unable to absorb that loss the first thing we did was freeze increases and decrease our expenses by around $11,000 that we were paying to three of our vendors. Now these vendors, who might also be affected by the mandates, will be in the same predicament and will react in the same manner. The second thing we did was increase our prices to the consumer to make up for the loss of revenue. And so it goes on and on. The ripple effect has far reaching negative effects and can have serious consequences to businesses and the employment market.

Even if you are paid $15 an hour and you are working 40 hours a week, which is highly unlikely at a part-time job, your gross earnings will be $31,200. Take out 30 percent for taxes and you’ll be bringing home $21,840. It would be almost impossible for a family of four to make ends meet on that annual income. So, although $15 an hour sounds good for you it might not be so good for your son or daughter when they try to enter the work force.

So, why would these mandates be implemented if they are not good for us or the economy? The answer is plain and simple. If you think the main reason was for your benefit, then Jonathan Gruber was right when he said to the current administration: “The American people are stupid and have a short memory.” Remember, there is free cheese in a mouse trap. Go ahead and get it.

Bruce Piatz is a Jamestown resident.