As Americans prepare to head to voting booths across the country on Tuesday, key issues impacting their wallets, small businesses and the future of U.S. economic growth are in focus. Minimum wage increases are on the ballot in four states including Arizona, Colorado, Maine and Washington. Former McDonald's (NYSE:MCD) USA CEO Ed Rensi weighed in on the potential economic impact of these minimum wage hikes.
“Small businesses are what drive the economy and create the jobs in this country. You can’t double the size of a monolithic, giant corporation, but you can double the size of small businesses pretty quickly, double the jobs,” Rensi told the FOX Business Network’s Maria Bartiromo.
According to Rensi, though, current small business growth is being blocked by minimum wage hikes, Obamacare costs and numerous other regulations.
“But with these regulations, both state, county and federal that are being pushed on to these small businesses, health care costs, minimum wage, it’s stifling growth everywhere you look. And I know so many people in the restaurant industry who’ve said, ‘I give up, I’m done, I’m getting out, I’m working for the federal government, the unions,” he said.
Rensi then pointed to restaurants in New York City as a tangible example of how minimum wage increases are having a negative effect on small business.
“Look at the number of restaurants that are closing in New York right now, in New York City, because of this minimum wage business.”