Today's Hotelier - April 2018 - 59

 3.5-MINUTE READING TIME

ITH APRIL
Fool's Day
comes a lot of
t r icker y
and
pranks. While
many of them are
harmless and entertaining, another
hoax perpetrated on the American
people is not as innocent and has been
promoted for years.
Groups like Fight for 15 - and their
affiliate organizations - have been touring the country advocating for a government mandated $15 per hour minimum
wage, arguing it would raise the standard of living for American workers and
their families. The coalition has gained
attention in part thanks to supporters
like Democratic party leaders Senators
Elizabeth Warren and Bernie Sanders.
However, the real-life outcomes of
raising the minimum wage have been
devastating.

According to a 2017 study from the
University of Washington, the $13
minimum wage that exists in Seattle
forced employers to reduce entry-level
employee hours by 9 percent. And the
average monthly earnings for these
workers decreased by $125.
Another report examining the impact
of a $15 minimum wage in Montgomery
County, Maryland, yielded similar
results. Researchers found that increasing the entry-level wage to $15 an hour
would cost the county 47,000 jobs over
the next five years, or the equivalent of
$396.5 million in lost income.
These results are not a surprise.
Forcing budget-strapped businesses
to fork over money they don't have to
employees that don't quite have the necessary experience and skills to make it
to the next career level will only induce
layoffs, pay cuts, reduced hours and job
automation. An outcome that benefits
neither businesses nor employees.
Until recently, wage levels were a
big problem in the U.S., with earnings
remaining largely stagnant for nearly a
decade. So it's not a surprise that efforts
to raise pay have been made the centerpiece of national populist campaigns.
However, the approach to raise wages
through government decree harms
employees and damages the economy,
period.
Government certainly isn't the solution to higher wages, but what is? The
answer lies in a strong, growing economy and a skilled labor force.
On a micro level, the key to attaining
high-paying employment is possessing
the skills a job demands. This may mean
forgoing a traditional college education -
as well as avoiding tens of thousands of
dollars of debt - and instead attending a
trade or vocational school that can lead
to careers paying $50,000 or more per
year (these include nurses, mechanics,
welders, electricians etc.). Also, simply
being able to work hard at an entry-level
job and gain the necessary experience
to move up the career ladder - a path

inhibited by minimum wage hikes - will
significantly increase earning potential.
On a macro level, the U.S. is already
heading in the right direction. According
to early reports from the Bureau of Labor
Statistics, the wage-growth rate over
the past year has reached its highest
level since the Great Recession, which
can be attributed to the current administration's policies of deregulation and
reducing taxes.
For example, just a month after the
passage of the Tax Cuts and Jobs Act -
legislation that significantly reduced
the tax burden on U.S. businesses -
roughly 80 companies had announced
some sort of pay increase for their
employees, and over half of those
planned on raising their base wage to
$15 an hour or more. In fact, a case could
be made that the tax bill has done more
to raise wage levels to $15 an hour in a
few months than the Fight for 15 campaign has accomplished over the better
part of a decade.
The strong wage growth is easily explained through the supply and
demand of labor. As job creation rates
remain high, the labor market moves
closer to full employment, which essentially means that everyone who wants a
job has a job. In this environment, businesses must compete for workers to fill
their vacant positions by offering job
candidates a wide variety of perks. These
could include things like health benefits, retirement plans and, yes, higher
wages. Economists have come to call
this very situation a tightening of the
labor market.
Many ideologues may be trying to
trick the American people into supporting government mandated wages, but I
believe the results speak for themselves.
Wage growth is best left to the entrepreneurs and job creators that keep our
economy running smoothly, not misguided politicians.
■
Alfredo Ortiz is the president and CEO of
the Job Creators Network.
TODAYSHOTELIER.COM | APRIL 2018 | 59


http://www.TODAYSHOTELIER.COM

Table of Contents for the Digital Edition of Today's Hotelier - April 2018

Letter From the Chairman
Letter From the President & CEO
Government Affairs & Advocacy
The C-Suite
Common Ground
Summer Season Offers Opportunities to Drive Business
Maximizing Your Experiential Travel Potential
What Can Hoteliers Learn From Other Industries?
Trends to Watch
Finance
Operations
Marketing
Small Business
Spotlight
Q&A
Perspectives
Travel
Leadership
Strategy
Design
Guest Experience
Food & Beverage
Technology
Operations
HR & Employee Relations
AAHOA Club Blue, Platinum, Gold & Silver Members
AAHOA @ Industry Events
Classifieds
Advertiser Index
Back of the House
Today's Hotelier - April 2018 - Intro
Today's Hotelier - April 2018 - cover1
Today's Hotelier - April 2018 - cover2
Today's Hotelier - April 2018 - insert1
Today's Hotelier - April 2018 - insert2
Today's Hotelier - April 2018 - 3
Today's Hotelier - April 2018 - 4
Today's Hotelier - April 2018 - 5
Today's Hotelier - April 2018 - 6
Today's Hotelier - April 2018 - 7
Today's Hotelier - April 2018 - 8
Today's Hotelier - April 2018 - 9
Today's Hotelier - April 2018 - 10
Today's Hotelier - April 2018 - 11
Today's Hotelier - April 2018 - Letter From the Chairman
Today's Hotelier - April 2018 - 13
Today's Hotelier - April 2018 - Letter From the President & CEO
Today's Hotelier - April 2018 - 15
Today's Hotelier - April 2018 - Government Affairs & Advocacy
Today's Hotelier - April 2018 - 17
Today's Hotelier - April 2018 - 18
Today's Hotelier - April 2018 - 19
Today's Hotelier - April 2018 - The C-Suite
Today's Hotelier - April 2018 - 21
Today's Hotelier - April 2018 - Common Ground
Today's Hotelier - April 2018 - 23
Today's Hotelier - April 2018 - Summer Season Offers Opportunities to Drive Business
Today's Hotelier - April 2018 - 25
Today's Hotelier - April 2018 - 26
Today's Hotelier - April 2018 - 27
Today's Hotelier - April 2018 - 28
Today's Hotelier - April 2018 - 29
Today's Hotelier - April 2018 - Maximizing Your Experiential Travel Potential
Today's Hotelier - April 2018 - 31
Today's Hotelier - April 2018 - 32
Today's Hotelier - April 2018 - 33
Today's Hotelier - April 2018 - 34
Today's Hotelier - April 2018 - 35
Today's Hotelier - April 2018 - What Can Hoteliers Learn From Other Industries?
Today's Hotelier - April 2018 - 37
Today's Hotelier - April 2018 - 38
Today's Hotelier - April 2018 - 39
Today's Hotelier - April 2018 - 40
Today's Hotelier - April 2018 - 41
Today's Hotelier - April 2018 - Trends to Watch
Today's Hotelier - April 2018 - 43
Today's Hotelier - April 2018 - 44
Today's Hotelier - April 2018 - 45
Today's Hotelier - April 2018 - Finance
Today's Hotelier - April 2018 - 47
Today's Hotelier - April 2018 - 48
Today's Hotelier - April 2018 - 49
Today's Hotelier - April 2018 - Operations
Today's Hotelier - April 2018 - 51
Today's Hotelier - April 2018 - 52
Today's Hotelier - April 2018 - 53
Today's Hotelier - April 2018 - Marketing
Today's Hotelier - April 2018 - 55
Today's Hotelier - April 2018 - 56
Today's Hotelier - April 2018 - 57
Today's Hotelier - April 2018 - Small Business
Today's Hotelier - April 2018 - 59
Today's Hotelier - April 2018 - Spotlight
Today's Hotelier - April 2018 - 61
Today's Hotelier - April 2018 - Q&A
Today's Hotelier - April 2018 - 63
Today's Hotelier - April 2018 - 64
Today's Hotelier - April 2018 - 65
Today's Hotelier - April 2018 - Perspectives
Today's Hotelier - April 2018 - 67
Today's Hotelier - April 2018 - 68
Today's Hotelier - April 2018 - 69
Today's Hotelier - April 2018 - Travel
Today's Hotelier - April 2018 - 71
Today's Hotelier - April 2018 - 72
Today's Hotelier - April 2018 - 73
Today's Hotelier - April 2018 - 74
Today's Hotelier - April 2018 - 75
Today's Hotelier - April 2018 - Leadership
Today's Hotelier - April 2018 - 77
Today's Hotelier - April 2018 - 78
Today's Hotelier - April 2018 - 79
Today's Hotelier - April 2018 - 80
Today's Hotelier - April 2018 - 81
Today's Hotelier - April 2018 - Strategy
Today's Hotelier - April 2018 - 83
Today's Hotelier - April 2018 - 84
Today's Hotelier - April 2018 - 85
Today's Hotelier - April 2018 - Design
Today's Hotelier - April 2018 - 87
Today's Hotelier - April 2018 - 88
Today's Hotelier - April 2018 - 89
Today's Hotelier - April 2018 - Guest Experience
Today's Hotelier - April 2018 - 91
Today's Hotelier - April 2018 - 92
Today's Hotelier - April 2018 - 93
Today's Hotelier - April 2018 - 94
Today's Hotelier - April 2018 - 95
Today's Hotelier - April 2018 - Food & Beverage
Today's Hotelier - April 2018 - 97
Today's Hotelier - April 2018 - 98
Today's Hotelier - April 2018 - 99
Today's Hotelier - April 2018 - 100
Today's Hotelier - April 2018 - 101
Today's Hotelier - April 2018 - Technology
Today's Hotelier - April 2018 - 103
Today's Hotelier - April 2018 - 104
Today's Hotelier - April 2018 - 105
Today's Hotelier - April 2018 - Operations
Today's Hotelier - April 2018 - 107
Today's Hotelier - April 2018 - 108
Today's Hotelier - April 2018 - 109
Today's Hotelier - April 2018 - 110
Today's Hotelier - April 2018 - 111
Today's Hotelier - April 2018 - HR & Employee Relations
Today's Hotelier - April 2018 - 113
Today's Hotelier - April 2018 - 114
Today's Hotelier - April 2018 - 115
Today's Hotelier - April 2018 - 116
Today's Hotelier - April 2018 - 117
Today's Hotelier - April 2018 - AAHOA Club Blue, Platinum, Gold & Silver Members
Today's Hotelier - April 2018 - 119
Today's Hotelier - April 2018 - AAHOA @ Industry Events
Today's Hotelier - April 2018 - 121
Today's Hotelier - April 2018 - 122
Today's Hotelier - April 2018 - Classifieds
Today's Hotelier - April 2018 - 124
Today's Hotelier - April 2018 - 125
Today's Hotelier - April 2018 - 126
Today's Hotelier - April 2018 - 127
Today's Hotelier - April 2018 - 128
Today's Hotelier - April 2018 - 129
Today's Hotelier - April 2018 - 130
Today's Hotelier - April 2018 - 131
Today's Hotelier - April 2018 - 132
Today's Hotelier - April 2018 - Advertiser Index
Today's Hotelier - April 2018 - 134
Today's Hotelier - April 2018 - 135
Today's Hotelier - April 2018 - Back of the House
Today's Hotelier - April 2018 - 137
Today's Hotelier - April 2018 - 138
Today's Hotelier - April 2018 - cover3
Today's Hotelier - April 2018 - cover4
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