The State Legislature is considering a bill that would raise Wisconsin’s minimum hourly pay for non-minors from $5.15 to $6.50 an hour. However, if the hike is not approved at the state level, several Eau Claire City Council members would support the change locally, according to a Leader-Telegram article.

A local minimum wage increase, without support at the state level, would do more harm than good to Eau Claire’s economy. If only businesses within Eau Claire’s jurisdiction are forced to raise incomes, they may not be able to compete with industries throughout the state. The price of goods manufactured in Eau Claire would increase, while other state-manufactured goods would not.

In addition, a minimum wage hike solely in Eau Claire would damage small, locally-owned businesses more than it would larger corporations.
Large retailers and national chains in the city already can afford to pay employees higher wages in most cases. A local minimum wage increase may shut down smaller businesses due to price competition, or force them to layoff employees.

Moreover, most jobs that usually pay minimum wage require limited skill. If people unwilling to do such labor for $5.15 start taking employment because of the pay increase, limited-skilled laborers will have a more difficult time finding work. This potentially could increase unemployment.

Increasing the minimum wage in Eau Claire is a short-term solution to a long-term problem. If cities around the state start raising minimum wages, pressure may be put on the state to emulate. However, that is a risk to the local economy that should not be taken as even people living in Eau Claire may enjoy pay increases, but look elsewhere to buy their goods.

It seems partisan politics are holding up the approval of a wage increase at the state level. If politicians would vote for what is right for their constituents and not as their party tells them to, cities such as Eau Claire wouldn’t have to carry the burden of deciding minimum wage increases.