Session Issues to Act On

 
I had intended to take this time to highlight Fed Chair Neel Kashkari’s new essay explaining his current views on our economy and interest rates. This is a follow-up to a February 2024 essay and the latest in a series he’s shared since 2022. Bottom line: Our economy continues to send mixed signals, making it difficult to assess whether our policy stance is tight enough to bring down inflation. Kashkari thinks it’s possible that the “new normal” neutral interest rate—that which neither stimulates nor slows the economy—may be higher than it was pre-pandemic. The housing market continues to show surprising strength as well, despite the significant tightening over the past two years.  
 
But I can’t ignore a few issues in the policy space that have me flummoxed. First is the need for the legislature to act to ensure Uber and Lyft don’t leave Minneapolis – and Minnesota. I’ll simply refer you to a good Star Tribune op ed written by Jonathan Weinhagen. “The Minnesota Legislature is set to adjourn in about a week. If it does so without repairing the damage inflicted on our region's businesses and reputation by the Minneapolis City Council pushing out Uber and Lyft, the negative impact will be dramatic.” Absolutely. Stunning to me that it seems to be going in the wrong direction.
 
Second is the Extended Producer Responsibility (EPR) legislation, HF 3577 / SF 3561, which continues to move forward and is close to passing. This bill would:

• Require manufacturers of paper and plastic packaging to be responsible for the cost of disposal of their products.
• Add an estimated $35-65 for a family of four per month to their grocery bill, due to increased packaging costs for everyday products.

The Minnesota Chamber has been in front of this and adds: Minnesota already ranks in the top 10 in recycling rates in the nation. Minnesota is unique and different from other states in the sense that there is already a solid waste tax in place in Minnesota dedicated to the disposal of products. This significant tax is 9.75% on residences and 17% on commercial industrial facilities and raises over $100 million per year. Costs matter. We already have a robust waste disposal program in place. We shouldn't be looking to raise more costs on employers and Minnesota families. CLICK HERE to contact your legislators and urge them to VOTE NO on EPR legislation. 
 
Finally, the Labor Policy omnibus bill (SF 3852) would hurt small businesses by removing the small business minimum wage designation from state law and doubling the annual automatic minimum wage inflator from 2.5% to 5%. 
 
In this tight labor market, most employers are paying well above minimum wage. And that's how it should be - market forces or deliberate policy discussions should determine minimum wage levels, not arbitrary annual inflators. This bill will stress small business budgets by requiring significant annual increases and removing the small business designation. This will make it harder for businesses to grow, negatively affect employee benefits, and increase prices for consumers. CLICK HERE to ask your legislators to support small businesses by voting NO this bill! 
 
 
See you in the trenches,
 
B​