“This study proves what we’ve always known to be true: That raising the minimum wage will be detrimental to the tenuous state of small businesses in the city while delivering minimal advantages to workers,” California Restaurant Association President and CEO Jot Condie said.
The study states that a majority of benefits generated by higher wages and spending would occur mostly in communities outside of San Jose and would generate an overall negative economic impact.
“The direct and immediate impact of lost jobs and cuts to the local economy would hurt our fragile recovery,” said San Jose Silicon Valley Chamber president and CEO Matt Mahood in a statement. “But the biggest impact would be long term. Businesses would face huge costs complying with the new audit powers of the and even bigger costs from a new kind of lawsuit.”
The lead author of the report is Dr. Christopher Thornberg. Thornberg is the founding partner of Beacon Economics and has conducted economic forecasting for San Jose State University. He sits on the editorial board of Pepperdine’s Graziadio Business Report and is a panel member of the Journal of Business Forecasting. He has served chief economic adviser to the California State Controller's Office and was an economist with the UCLA’s Anderson Forecast.
Read the full report here.