Impacts of Minimum Wage Boost

CHATTANOOGA, Tenn. (WDEF)- Joe Biden’s 1.9 trillion dollar economic relief plan includes an increase of the minimum wage from 7.25 to 15 dollars.

 “Cost of goods and different different things that you buy is going to increase also” said John Vandergriff from Blue Ridge Wealth Planners.

Vandergriff say if Biden’s administration is successful, it will be the largest percentage increase we’ve ever had, “I think the concern is what it would do to small businesses.”

 “Well I’ll be honest I have some concerns” said Ed Jones,  owner of Nutrition World.

Jones has over 20 employees on staff.

 While his workers have credentials that require upscale wages, he understands other businesses are not as fortunate.

 “If I were maybe a different type of business where I was hiring people at 10 dollars an hour, it would mean that I’m going to have to cut down on staff” said Jones.”There is no other option.”

 “Anytime expenses go up regardless whether it’s the minimum wage or supply cost or whatever, it effects our business said owner of Premier Beauty Supply William Bulls.

Bulls has mixed emotions about the relief plan.

 He’s concerned that manufactures may rapidly increase their prices, but he also considers himself pro-employee.

 “To me 15 dollars and hour is not unreasonable, and in fact most of my employees do earn that” said Bulls.

 While a boost in minimum wage is possible across the country, Vandergriff offers advice on what you can do with your money.

 “If we’re not good stewards of what we have in a smaller amount of money we’re probably not going to be good stewards when we have a larger amount of money” said Vandergriff. “So we want to make sure on a monthly basis that we keep track of what we have coming in and where it’s going, that’s the first step.”

Vandergriff also recommends increasing your emergency savings and reducing your debts if an increase occurs.