Glenn MacDonald, the John M. Olin Distinguished Professor of Economics and Strategy, warned of negative fall out from the new minimum wage that goes into effect this month in St. Louis.
In an article distributed by the Associated Press, MacDonald said, “There are plenty of negative aspects: Jobs will be cut. Costs will be passed on to consumers. Even then, not all businesses will be able to absorb the added cost. Some businesses that are hanging on by their fingernails will just shut down.”
Other business owners and employees quoted in the article were more optimistic about the impending hike in the minimum wage. St. Louis businesses will be required to pay a $10 minimum wage, increasing to $11 in January, 2018.