This week, the President and CEO of the Minnesota Chamber of Commerce, Doug Loon, gave an interview to the Star Tribune. In it, he is quoted as saying “I’d like to get us back to a place where we’re going to have a right balance in policy so that we don’t put headwinds in front of the state’s economy. Right now, our data shows our economy’s not growing at the pace it should be, and we’re falling behind.” You’d think this quote was complaining about the torrent of chaos unleashed by our federal government, right?
Wrong. Loon is complaining about Minnesota’s Paid Family and Medical Leave law, which hasn’t even gone into effect yet. The (long overdue) law allows workers to retain their wages and jobs when confronted with serious family and medical issues, including the birth of a new child or caring for sick relatives. It’s funded through a 1.2% payroll tax, and goes into effect January 1, 2026.
Programs like Minnesota’s new Paid Family and Medical Leave (PFML) and Earned Sick and Safe Time (ESST) will help workers and businesses alike, while growing Minnesota’s economy. By improving employee morale and giving workers time to take care of their family, evidence from other states shows that PFML and ESST boosts worker retention, helping employers avoid costly turnover. PFML and ESST provide workers with better health outcomes, more rewarding child care arrangements, and stronger bonds with children. Other states with paid leave have seen a decline in nursing home usage, and a reduction in the number of new mothers who fall into poverty and require state assistance, saving money over time. All for the cost of a 1.2% payroll tax.
As a final point in favor of PFML and ESST, according to a recent survey, general workforce availability is the #1 barrier to Minnesota business expansion. Evidence from other states shows that PFML and ESST improve labor participation rates, providing a solution to the workforce shortage facing the state’s businesses.
Meanwhile, Trump’s trade war will cost Minnesota businesses dearly. Surely, there’s a payoff to all this, a well thought out reason for why we would declare a trade war on Canada, Minnesota’s next-door neighbor. Apparently, the payoff is that we will stop fentanyl from coming across the border from Canada. You know, the thing that doesn’t really happen all that much. Our federal government is tanking our economy and hurting Minnesota’s businesses and there is quite literally no good reason. That doesn’t even take into account the layoffs created by the richest man in the world, canceled funding for things like curing child cancer, and overall chaotic and lawless environment.
One would think that organizations dedicated to serving the interests of Minnesota’s businesses should be sounding the alarm about the unprecedented tsunami of anti-business chaos coming from the White House, and putting their considerable lobbying might to work. Instead, they’re busy blaming common-sense worker protections for the economic headwinds that are blowing straight in from Washington. For groups who are truly pro-business and not just anti-worker, it’s time to focus on the policies that are actually driving us toward an economic crisis.
