The Portland City Council’s Housing and Economic Development Committee is considering a proposal to raise the city’s minimum wage from $15.50 to $20 an hour over three years, without changing the $7.75 rate for tipped workers. Public comments, mostly supportive from residents and opposed by employers, highlighted the high cost of living and housing shortages. Matt Gagnon argues that such a wage hike would reduce job opportunities for low-skilled workers, as employers would have to pay more than the labor’s actual value, leading to fewer hires. He also suggests that wage compression would occur, with higher-skilled workers demanding raises, potentially causing inflation and financial strain on businesses, particularly restaurants with thin profit margins.