The Pros and Cons of Raising Minimum Wage
By: David Shepherd
Updated: February 13, 2013
It would increase the minimum wage from it's current level of $7.25 an hour to $9 an hour -- in increments--through 2015.
It comes as good news for people making minimum wage.
Michelle Johnson, an employee at an Evansville thrift store says, "It would help people who are not making it as far as paying the bills and rent and stuff."
But business owners have mixed feelings.
Stan Jackson, Owner of Evansville thrift store "Whats New" [also Johnson's employee] says, "If you really care about your employees and you want them to be able to do better for themselves, you have a hard time being against this type of a situation."
Jackson is one small business owner who knows the impact on businesses would be great but he still supports the increase.
"If you have a lot of employees who are below what the new proposed minimum wage is, it's a large expense because payroll is your biggest expense. If that goes up substantially, then that's going to be a big increase and it's going to require some adjustments in your business."
Jackson continued, "They're going to have to increase prices, they're going to have to do some things, they're going to have to cut hours or do something to compensate for that. It's not something everybody can absorb."
