Minimum Wage increase by Democrats could backfire on local businesses

As the Democrats canvass this month to increase the federal minimum wage rate, so workers with labor-intensive jobs such as fast food and janitorial jobs can have better paychecks, the rise may cause more problems then they are aiming to solve.
According to reports, the legislation written by the Democrats will raise the wage floor in three steps: $5.85 an hour after 60 days, $6.55 a year later and $7.25 a year after the first, which might cause growth among the unemployed.
This change may affect Louisiana residents significantly due to the fact there is no state minimum wage law.
According to Southern University Assistant Professor Eric Horent, because of a rise in minimum wage, this may lead to fewer jobs available, due to job cuts and a larger surplus of labor, which in turn means more unemployment.
“Some business might just forget about employing Americans and go to other countries were people will work for way less money leading to more outsourcing,” Horent said. “Though the increase will let people already employed be better off.”
Southern students like Brandon Brown, a senior criminal justice major from Port Allen, is all for the increase.
“It should’ve been raised a long time ago because how is a person going to support a family with $5.15,” Brown said.
According to the National Federation of Independent Business website, the increase of minimum wage may offset benefits such as health and retirement plans for people working in addition to businesses that were affected by Hurricane Katrina may have a harder time trying to reestablish themselves
“Small business will get hurt since they have a different structure than a big corporation,” said NFIB Senior Media Manager Stephanie Cathcart.
“Big corporations do not absorb the cost because most minimum wage jobs are offered by small businesses,” he said.
“It’s a tough issue but we are philosophically against it,” Cathcart said.