Effects of raising the minimum wage

Effects of raising the minimum wage _7369793960276280972

    It seems to be the milliondollar question… How do you boost a failing economy? The new york stateassembly decided in May, one way might be raise the minimum wage. But as inphysics, every action has an equal or great reaction. So how would this affectsmall business owners?

            Area business owner Rocky Fiato says, “Havingthe minimum wage as it is right now gives me an opportunity to have more peoplecome in for a job.”

            ExecutiveDirector of the Herkimer Chamber of Commerce John Scarano says, “I thinkit’s going to be really detrimental. I think it’s a proven fact you raise thewages that much you’re going to actually lose jobs. Small business owners, ifthey employee eight people they’ll say well I’ll have to do this at six people.And then what happens.”

            Currently the New York minimum wage is at seventwenty-five an hour but the proposed increase would make it eight dollars andfifty cents, but the federal government wants to make it even higher. Andowners like rocky say takes away the option of increasing wage based onperformance.

            Fiato says, “I think that if this wage goes rightup to $9.60, you don’t have that option anymore because they know they’re goingto get it and they really don’t have to prove themselves to get an increase intheir hourly wage.”

            Rocky says most of his employees are above minimum wagebecause due to what he’s learned as a small business owner. “I learned along time ago, I’ve been in business for 36 years. You’ve got to take care ofyour employees, especially good ones. If you don’t take care of good employeesthey’re not going to stay with you long.”

            Experts say an increase to minimum wage has a domino effectcausing the price of goods to go up as well.

            Scarano added, “It won’t help with the poverty level,it will not because let’s face it, if minimum wage goes up cost of goods isgoing to go up. I don’t think people making minimum wage are going to be betteroff, they’re going to pay 50 cents more for a hamburger.”

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