A study conducted in the economics department of Texas A&M University says raising the minimum wage will not stimulate the economy.
The study was done in response to the president's State of the Union Address in which he proposed raising minimum wage from $7.25 per hour to $9 per hour. Local economists say not enough people work at minimum wage for the raise to have an effect on the economy.
"Most businesses don't have that many minimum wage workers. What it's going to do, if we raise the minimum wage, is it will probably significantly reduce the number of entry level jobs for high school kids and college kids. These are kids working at maybe Brookshires or Lowe's where they're part time jobs. There really are very few full time people working at minimum wage," says Harold Doty, Dean of the UT Tyler College of Business and Technology.
"The folks who want to raise minimum wage... I think they mean very well, but historically, we've been able to look at it a number of times now and it just hasn't had the benefit that people have hoped it would have," says economist Ray Perryman.
The study done at Texas A&M University says raising the minimum wage would not affect employee turnover or layoffs.
Saturday, July 26 2014 2:09 PM EDT2014-07-26 18:09:07 GMT
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