Could the Minimum Wage Hike be the Death of Daycare?

Daycare providers are great people; 

they have to be, they care for the children who are the future. 

However, with a looming legislative issue, the Minimum Wage Hike could close the doors which now open every morning to receive these children before their moms and dads go to their jobs.  

NFIB Membership Rep Terry Scott sees many business owners each day educating them on upcoming harmful issues which if became law, could severely affect their small business. One concern by owners of daycare Scott says is the Minimum Wage Hike.

 “Owners of daycare tell me” says Scott, “that if they must raise the wage for their employees they would then be forced to let some staff go to pay the wages of those who remain”. This would make things very difficult as Wisconsin law states that a specific ratio per staff and child (https://www.daycare.com/wisconsin/) must be maintained so keeping every currently employed staff member is crucial. “Add the shortage of workers to this scenario and daycare center owners may be forced to close their doors” concluded Scott.

Much of the general public, of course, would love to get a larger paycheck. But if that larger paycheck is created only by votes of politicians and not by the natural economic process between business owners and employees, that artificial larger paycheck makes all costs to go up.

Every parent who sees their wages increased by the Minimum Wage Act’s “magic wand”, will see the price of food, clothing, shelter and everything rise exponentially as every employer raises wages, and the prices of goods and services to their clients. If the daycare is even able to remain open after this devastating wage law, parents will surely not like the raised fees which the daycare will be forced to do, and they may even find themselves as one of those unfortunate employees let go from their workplace and in the worse case, may be without a daycare to send their children.

The alternative to raising the minimum wage has always existed in our Free Enterprise System; to improve oneself and qualify for work at a higher paying position with a company which offers more in wages, benefits and other things. Other employees choose to work at a company of their choice for less because it suits their needs and schedules. A “one-size-fits-all” wage increase is not the answer and would hurt all small business, customers, and the economy.

Terry Scott is an NFIB Rep and these are not necessarily the views of NFIB. You may contact Terry with questions or details on joining NFIB.

Picture above from web source: https://www.lifehack.org/articles/communication/15-small-things-parents-should-their-children-every-day-make-them-feel-loved.html