BSU Economist Speaks on Impact of Proposed Wage Raise
by Sammy Edmonds
posted Feb 26 2014 10:51AM
The chorus against President Obama‘s plan to raise the federal minimum wage from $7.25 to $10.10 an hour appears to be growing. The nonpartisan Congressional Budget Office says the move could cut a half-million jobs by the end of 2016.
Ball State University economist Dr. Mike Hicks says workers would obviously benefit from the raise. However, he says firms plan their business models on market concerns and not federal dictates. Hicks says the move would raise the cost of labor by 30 percent. He says that would directly impact small businesses that survive on low wage labor.