Minimum Wage Hike Can Mean Higher Prices
Peter O'Dowd and Elsa Partan
LARAMIE, WYO. (2008-07-21)
"Minimum-wage workers in Wyoming and across the country will get a pay raise on Thursday. The federal minimum wage will go from $5.85 to $6.55 an hour. Some small business owners say higher wages may force them to raise prices.
"John Guerin owns a coffee shop in Laramie. He says the minimum wage increase and skyrocketing prices for fuel and flour have forced him starting today to raise his menu prices by 10 percent across the board. He says that has left customers fuming. "At both our retail stores in Laramie, we heard about it. Nobody is happy about it. And we weren't happy about it either. But we just explained we have to do what we have to do to stay in business," Guerin said.
"Guerin says he has to raise all his workers' wages now, not just for the beginners who are paid minimum wage. That's because he has to maintain higher levels of pay for more experienced workers. He says this week's wage increase of 12 percent gave him no other option but to raise prices."
I heard from the FFM, who heard the interview on the radio, that Mr. Guerin supports the minimum wage increase, despite that this policy is forcing him to raise his prices, above their current exhorbitant levels. (I also heard that the interview featured the coffee shop owner exposing that customers have been complaining anyway that prices are high.)
Aren't we all happy to live in a country where the minimum wage can be increased by 70 cents on the dollar to a whopping $6.55, so that not only can employees who are paid this amount pay their bills, but the business owners who pay them can feel good about giving their people a "raise?"
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3 comments:
I would assume, based on personal experience (though, thank God it's been a while) that those who will be making the new amount for minimum wage will, as you wrote, "be able to pay their bills." However, I would like to also point out that it is highly unlikely they will be paying any bills OFF....
Yes, that's called "satire." I realize that my words lately have taken a turn toward bitterness only bordering on irony, so perhaps such witty wordplay was not expected.
I figured the satire was intentional. I just thought I'd throw some of my own frustration with our society out there, as well....
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