Business owners say minimum wage increase would cost jobs - KSLA News 12 Shreveport, Louisiana News Weather & Sports

Business owners say minimum wage increase would cost jobs


During his State of the Union address President Obama proposed increasing the U.S. minimum wage from $7.25 to $9.00. Many people working minimum wage jobs support the plan.

"I play sports and I have fees that I have to pay," said Jasmine Griffin.

As soon as she turns 16 Griffin plans to get a minimum wage job at a restaurant. She thinks if that pay went up the extra money could go a long way.

If someone works a minimum wage job 40-hours a week every week they would make an extra 70-dollars a week with the proposed $1.75 increase. That adds up to $3,640 a year before taxes.

"I'm saving up for a car, and I'm saving up for college in case I don't get a scholarship," said Griffin.

However, some restaurant owners worry if the minimum wage does increase they won't be able to hire kids who need a job. The Real Pickle cooks up specialty sandwiches, and it employs about 20 people in Shreveport. Joe Monsour has owned it for 16 years, and says his workers are like family, but if minimum wage goes up he may have to let some of that family go.

"We'd end up losing the two busboys first," said Monsour.

He thinks raising minimum wage would have a ripple effect. 

"If I raise my dishwashers to $9, what do I do with my $9.50 cooks or $10 cooks. They're gonna want the same raise, and justifiably so," said Monsour.

He also expects the cost he pays  his suppliers would go up.

"The shrimp goes up, and then the beef goes up, and the bread goes up, and everything goes up because they're paying the employees more," said Monsour.

He thinks each of those little things will add up to big costs for small businesses.

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