Minimum Wage Hike Not Enough For Economy - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Minimum Wage Hike Not Enough For Economy

Frank Gauclain, Frank's Bakery Frank Gauclain, Frank's Bakery
Cashier Dani Oberbrockling Cashier Dani Oberbrockling
Financial Advisor Bill Hall Financial Advisor Bill Hall

Today's minimum wage hike is seeing a Luke warm response from workers and businesses.   The increase may seem good for some but it is not offering much relief for businesses and consumers.

Generally, most workers are excited about getting a raise, but the 70 cent raise that went into effect today is leaving some apprehensive.  Workers, business owners and consumers are all questioning whether the wage increase is more hurtful then helpful.

Most people are pleased to see a little extra cash in their paycheck, but that extra money is putting a strain on businesses and consumers who have to adjust for the increased payroll cost.

Local owner Frank Gauclain, of Frank's Bakery he is making adjustments. "How much I raise. Raise 10 cents on each," Gauclain explaining how he's handling the economy. Frank has been in business for 10 years. He says the economy is taking a toll on his business.

Financial Advisor Bill Hall understands the frustration business owners deal with.  "It's difficult. The only way you can pay your employees is pass that along to the consumer," Hall said.

Cashier Dani Oberbrockling, says dealing with the inflation is very tough. Even though employees are happy to see a raise. They agree $6.55 is not enough to survive in today's economy.  "First of all the prices go up then they raise minimum wage. If you're raising the prices your just kind of adding to the problem," Oberbrockling said.

Hall says he understands the frustrations of consumers and businesses. "They face a pretty big up hill battle with a lot of the business in Texas... To try to and keep their expenses under control so they can keep prices as low as possible for their customers," Hall said.

The financial strain is forcing Frank, to do what he can to keep customers, while handling the rise of gas, food and minimum wage. "I die!  I close the door and that's it," Gauclain explaing his grim alternative.

The three wage hikes, the first of which occurred last summer. Have been the only increases since 1997 when minimum wage was set at $5.15 per hour. Next year, minimum wage will go up to $7.25.

 

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