7 Small Businesses Tell Us How Obama’s Call For An Increase In Minimum Wage Would Affect Them: ‘Bad, Bad, Bad’

President Barack Obama during his wholly original and exciting State of the Union address last month called for Congress to raise the federal minimum wage.

“We know our economy’s stronger when we reward an honest day’s work with honest wages. But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong,” he said.

“That’s why, since the last time this Congress raised the minimum wage, 19 states have chosen to bump theirs even higher. Tonight, let’s declare that, in the wealthiest nation on Earth, no one who works full time should have to live in poverty — and raise the federal minimum wage to $9 an hour.”

But what do small businesses have to say about the president’s proposal? We’re glad you asked. That’s what we’re here for.

Below is a collection of testimonials from small-business owners who’ve partnered with The Marketplace by TheBlaze, a unique online store featuring some of the best and finest small businesses in the nation.

Here’s what they had to say about the president’s suggestion:

Creative Learning Connection

How does the proposed $9 minimum wage affect any hiring decisions you’re currently faced with?

At the moment my business is so small that I have no help besides family, but the idea of a higher minimum wage is very frightening for our future prospects! If minimum wage goes up, we would definitely delay our first hires.

Do you believe your business would benefit from the $9 proposed minimum wage or be adversely affected? Why?

There is no doubt we would be adversely affected by an increase minimum wage. When I start hiring, I will be in need of part time help that is fairly low skill — teenagers or stay-at-home moms wanting just a little extra money in their budget — that type of thing.

Higher minimum wage would add financial strain to our business.

Mrs. Cavanaugh’s Chocolates

How would the proposed $9 minimum wage affect your business?  

It would hurt our business greatly.

How does the proposed $9 minimum wage affect any hiring decisions you’re currently faced with?  

We would not hire any new people and we may have to let some go and cut back.

Do you believe your business would benefit from the $9 proposed minimum wage or be adversely affected? Why?   

We would be adversely affected. Government needs to get out of our way. Why don’t we pay congress minimum wage or no wage. Let them donate their time.  By the time we pay all the taxes and jump through all their hoops to stay in business we have to practically work for nothing as owners.

Rinse Bath & Body

How would the proposed $9 minimum wage affect your business?

Bad, bad, bad. Obviously our cost of labor would increase. We have not raised our prices in over 5 years even though the costs of our ingredients have increased. With a minimum wage increase along with the continued rise in ingredient & packaging costs we will need to seriously consider a price increase. We could also absorb the increase by letting go of one of our workers putting more demands upon those who are left.

How does the proposed $9 minimum wage affect any hiring decisions you’re currently faced with?

In the next 4 weeks we are opening up our first retail store & were looking to hire 2 people to help staff it. Now rather than the wage we could to afford (and proudly) offer for the positions, which would attract a better candidate base for the position, against minimum wage isn’t as enticing. Honestly, much of the entry level workforce out there isn’t worth $7.00/hour with the motivation & work ethic they hold.  And now they are going to want us to pay them $9.00/hour?!?!

Do you believe your business would benefit from the $9 proposed minimum wage or be adversely affected? Why?

Adversely affected. Every supplier, vendor or business partner we have will be affected similarly… driving up prices for us… which will in turn drive up prices for our customers.  Or it will mean they let people go, and we might have to as well.

EmergencyGoBags.com

How would the proposed $9 minimum wage affect your business?

The $9 minimum wage will have a negative effect on our business by forcing us to raise prices and possibly cutting back on some of the products that we carry.

How does the proposed $9 minimum wage affect any hiring decisions you’re currently faced with?

We are currently in the process of hiring/looking at hiring… the positions we are looking at now require more than minimum wage for the type of positions and therefore we’ve had to extend only part-time work offers rather than full-time. With the minimum wage going up it will force us to either not hire any more people, hire only part-time workers and/or just have the current employees take on more work. Our company is currently experiencing “growing pains” we need help… but we’re in that window where we just cannot afford the help we need!

Do you believe your business would benefit from the $9 proposed minimum wage or be adversely affected? Why?

Our business would be adversely affected by a $9 minimum wage because we work with suppliers and manufacturers who run larger businesses and we already know that they will be hurt by both the minimum wage increase and Obamacare.

What it means is that the consumer is going to be the one hurt by price increases, as all the businesses (as well as ours) have to deal with the ever increasing burden of new costs and regulations… it seems to be a never ending cycle. Small Business owners are either forced to do everything themselves, making it impossible for them to have time to grow their businesses, let alone have any time for their families — or they need to hire experts to handle the work for them and therefore be in business solely for the benefit of others, as any profits goes into someone else’s pocket.

At times it seems like a no-win situation. You stay in business because you believe in what you’re doing, what you’re offering will help others and because you still believe in the American Dream!

Kleids

How would the proposed $9 minimum wage affect your business?

It would make us less competitive with imports.

How does the proposed $9 minimum wage affect any hiring decisions you’re currently faced with?

It would mean keeping all new hires to part-time hours.

Do you believe your business would benefit from the $9 proposed minimum wage or be adversely affected? Why?

Adversely affected. The cost of raw material and services will go up and force me to raise my prices.

Sweetly Divine

My business’s name is Sweetly Divine, and just like many businesses in America, we hire people to help us get the product to the public. We are a small business and we are always looking to get the best price for our customers.  We understand that the pay we offer is not a salary you can build your life on, but rather is a transitional job, where mostly college kids will work or someone who is going through some hard times.

We currently have three employees, and if I would be forced to raise the minimum wage to $9 I would have to lay off two of them and work additional hours myself. This would slow the growth of my business.

When the business grows and I am able to pay people more, I do so according to their skills and desire to work.

Over the years I have had many employees. At one point I had nine people working for me. One employee started as a dishwasher, but was able to advance to a manager. The business grew and increased in sales, and it was exciting to be able to provide my employees the opportunity to advance in the company. Not only was I able to help the community by providing jobs, but I was able to spend quality time with my own family. However, because of the economy’s downfall, I was forced to lay off many people. Now I work 16 or more hours a day, and don’t get as much time with my family as I would like. If the wage were to increase to $9 an hour, I would be left with no other option than to lay off the few employees I do have. I wouldn’t feel like I was benefitting the community, because I would not be able to provide employment.  I want to provide jobs. I want to be a source of hope for high school and college students, those temporarily unemployed, and anyone else who needs a job. But if the pay were to increase, there’s no way I could provide that.

Nebraska Star Beef

How would the proposed $9 minimum wage affect your business?

It will drive up labor cost on our beef production, which will likely drive up the cost of our beef.

How does the proposed $9 minimum wage affect any hiring decisions you’re currently faced with?

It will force us to “do more with less” to keep prices from going up too radically, which is not likely to help sales…

Do you believe your business would benefit from the $9 proposed minimum wage or be adversely affected? Why?

People who earn minimum wage don’t really fit our customer demographic, and it’s hard to imagine that increasing production cost will result in a more affordable product for the higher earning customers.

  • http://www.artinphoenix.com/gallery/grimm snowleopard (cat folk gallery)

    Once again we see the continuing madness of Obama and his Socialist-Communist allies being played out; he wants to put more people out of work, force businesses to not hire, and to put indirect strains on the lower and middle class to bring them ever deeper into the governments fold of dependency.

    Obama is completely insane, and so are the fanatics who follow him.

  • http://www.artinphoenix.com/gallery/grimm snowleopard (cat folk gallery)

    In the end such a move will cost more jobs, more economic disruption and more hardship on the lower and middle classes due to prices being passed on to them.

  • Anonymous

    I noticed that 7 people with no agenda towards agreement all said the same things.  An increase from $7.25 up to $9 is about a 24% increase in wages. The result will be a 24% increase in prices for basic consumer goods.  Those who make minimum wage will be hit hardest by the inflation.  Those are the people who have to stress the simple act of purchasing milk, eggs, sugar, gasoline, diapers, baby formula, etc.  If you have $9 an hour with high inflation then you are no better off than before!  Raising minimum wage in a struggling economy will get us NOWHERE!

  • http://www.facebook.com/people/Barry-Levy/1091577549 Barry Levy

    so I am mandated to raise minimum wage, and is anyone then telling the truth that this wage increase is the tip of the ice berg.

    With the minimum wage increase comes the increase in the share of social security that I must pay on that wage,, so my cost go up more

    with minimum wage going up, workers comp/disability and other costs of business go up because certain costs are based on salaries and payroll.  So that is another cost going up

    How about if I am taxed on gross sales,  that is now a hidden cost that can’t be deducted.

    And so the easy fix, is not so easy nor as inexpensive as indicated and the only people that seem to favor the increase in minimum wage are those that are already sucking at the breast of the tax payers, who are paying them far too much for the results that are generated.

  • Anonymous

    Add to the above scenario that price increases on goods sold is difficult to support when demands are down due to depressed economic growth, lower consumption, and slower money velocities. Business would have no option other than to shrink in employment roles and raise costs only in as much as would be accepted by the market. Profit goes down and it’s like riding out a bad storm. What ends up happening in this situation is big businesses with large capitol holdings can survive much easier than small businesses and the ‘little guys’ lose. Ironic since the Dem’s are always touting how they represent the interests of the downtrodden. Micro and Macro economics confirms these assertions.

  • Anonymous

    “But today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong,”

    Yeah, barry, I’ll tell you what is wrong – that you act like this is a permanent underclass when it is not.  I have read that less than 3% of the workforce actually works for minimum wage.  That level of pay is the door into employment for unskilled labor, and what you are doing is closing some of the doors by raising the minimum wage.  I seriously doubt there is one family – or at least more than a handful – who work full-time for minimum wage.  It’s an entry level wage for virtually no skills.  What you are doing is killing Summertime employment for high school and college kids as well as part-time employment for others.  Almost all of us started at the bottom – and that’s the point, one works to get up the ladder, one doesn’t stay there.

    What are you going to do next – propose that those under the poverty line be raised to the average by more wealth redistribution?  Then the average will just shift again, won’t it?

  • Anonymous

    What no one is talking about, what no one is saying, is there will be a “ripple effect”.  Yes, social security, workers comp etc will rise, but let’s not forget the cost of every other employee who’s wages will rise proportionately because of the minimum wage increase.  That is, if someone is already making $9.00 an hour, that employee’s hourly wage must increase. What exactly would that cost alone mean to a business’ bottom line?  A significant cost increase, particularly if the number of employees is significant.  This, to me, can be more impactful on a company, this additional cost,  than simply the minimum wage earners who will receive the increase. Is this merely an oversight?  Or designed to obfuscate and deflect from the facts, and the truth.

  • Anonymous

    No, there is not a ripple effect.  Through the last minimum wage increases, my husband’s wage never went up. So each time they raise the minimum wage, the money he gets for his years of experience and loyalty to his company decreases.  Prices go up, so our standard of living goes down.  The minimum wage helps no one and drives the middle class down into poverty.

  • Anonymous

    Actually Scott that probably won’t happen under our current situation. It may over the long term but right now and for the near future there is a surplus of available workers (i.e. many more want to work than there are jobs to be filled). So, competition for jobs favor the employers keeping wages level except for the manditory minimum wage increases, at least in non-union situations. The union backed job groups will have your argument used and will probably succeed in getting higher wages and benifits but eventually, a whole lot more companies will suffer the ‘Hostess syndrome’.

  • jeff.cox

    Here is an idea that kills 2 birds with one stone … to overjoy both small businesses and people who detest the idea of illegal immigrants breathing their oxygen, all we have to do is just re-institute slavery and chain up all the illegal immigrants in this country and put them to work. Of course, small businesses might whine about how much slaves cost, but they whine about everything all the time anyhow. And on the plus side, Nike might start making tennis shoes in Alabama instead of Taiwan if they could get local slave labor.