POSTED: Wednesday, December 4, 2013 - 6:14pm
UPDATED: Thursday, December 5, 2013 - 4:36pm
Tyler, TX (KETK) — The current minimum wage is $7.25. Recently, President Obama is pushing to increase that amount to $10.
To some, this seems like a solution to keep up with the higher cost of living. One East Texan said, "Yea, I think it would be a good look on things". Another mentioned, "It needs to be raised so that people can pay their bills".
KETK spoke with Jay Oliver, a financial expert from Rose Point Capital, who said, "The difficulty in raising minimum wage is, will those additional dollars go to the workers who really need it, or will it just mean that the workers who are fortunate enough to have jobs, have more money"?
That being said, 20 states have already raised their minimum wage above the current federal level. Oliver mentioned, "If workers were suddenly making more money that would help solve the problem of wage inequality. But the reality is these things don't happen in isolation".
To critics and small business owners, this increase coupled with the costs of Obamacare may slow job growth. Oliver says, "If the small business owner is reluctant to hire, or hires fewer people or actually lays off people, then those who need it the most may not benefit from the higher wages".
Inflation is also a concern. When the cost of doing business exceeds profits, shoppers may see an increase in price.
Another notable point, this push for an increase in the minimum wage comes at an interesting time. 59% of Americans say things are going badly in our country.