New York Gov. Andrew Cuomo considered modifying his $15 minimum wage proposal Tuesday after farmers warned it would be devastating.
Cuomo wants to raise the statewide minimum wage to $15 an hour. He introduced it Sept. 10 and has campaigned across the state to get it passed. Cuomo told reporters he is considering an exemption for the agriculture industry just a day after farmers and business leaders rallied against the increase.
“I believe we have to make a special modification for the agriculture industry because the rules are different there,” Cuomo said, according to NY State of Politics. “The employees work on a different basis. I have spent more time than more governor in history working on upstate New York’s problems. No one is more careful than I am in building the upstate economy.”
The New York Farm Bureau was among the organizations that attended the rally. Its members and leadership warned farmers would have to cutback on their workforce and the added cost of labor is likely to be passed to consumers. Other low-profit industries like restaurants and retailers are likely to be hit hard by a minimum wage increase too.
“New York Farm Bureau appreciates that the Governor recognizes the serious challenges farmers would face with a $15 minimum wage,” a bureau spokesman told The Daily Caller News Foundation. “We have not had any indication from the Governor’s office as to what this special package would be for agriculture, but our members remain opposed to an increase in the minimum wage and the economic hardships it would create for small businesses across New York State.”
Supporters argue it could help address income inequality, but critics aren’t so sure. Those that have low wages may end up earning more money, but employers may also cut back on workforces to overcome the added cost of labor. The state minimum wage is currently $9.00 an hour.
Studies have shown both negative and positive effects. The nonpartisan Congressional Budget Office has found both positive and negative results at minimum wage increases. It found any increase in the minimum wage will likely result in at least some job loss. The University of California, Berkeley found in a recent study that having less people in poverty outweighs the potential job loss.
Cuomo did not respond to a request for comment by TheDCNF.
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