Minimum wage raise could shut down small businesses - WAFF-TV: News, Weather and Sports for Huntsville, AL

Minimum wage raise could shut down small businesses

If wages go up, a What's Popp'N owner said she will have to raise her own prices or shut the shop down. If wages go up, a What's Popp'N owner said she will have to raise her own prices or shut the shop down.
HUNTSVILLE, AL (WAFF) -

Economists and local businesses react after President Obama announced his hope to raise the minimum wage during Thursday night's State of the Union address.

"That $1.75 means a lot," said Lisa Jackman.

Jackman is the owner of What's Popp'N, a gourmet popcorn shock off Airport Road in Huntsville. She watched the president announce the plans to raise the minimum wage to $9.00 an hour. Jackman said she has two options if that happens: raise her own prices or shut the shop down.  

"To me, it's like a dog chasing its tail in a circle. It's going to get worse, some people may get laid off, some might not hire. Think of the impact that's going to cause," said Jackman.

A North Alabama economist agrees with Jackman's take. Raise the minimum wage, and watch the market turn chaotic.

"It sounds politically nice because politicians get credit for sounding like they care about people, but the purpose of government is not to care about people," said University of North Alabama economics professor David Black.

Jackman is trying to keep her costs as low as possible to turn a profit. She knows if the economy takes a dive people will most likely cut her business out of their budget. That's why she's asking Washington DC to take a look at the ramifications before they raise any wages. 

Copyright 2013 WAFF. All rights reserved.

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