Last week, about 2 million workers got a salary boost — the Federal minimum wage increased from $5.85 an hr to $ 6.55. Predictably groups advocating for small businesses say the increase will mean that workers resolution get fewer hours, some people will get laid off, purchaser service will deteriorate, and prices will increase.

Last week, the Labor Department reported the fastest inflation since 1991 - 5 percent for June compared with a year earlier. Energy costs soared well-nigh 25 percent. The price of food rose added than 5 percent. ; So the minimum bet hike is ”a drop in the bucket compared to the increases in costs, declining strive market, and declining household wealth that consumers be obliged experienced in>the past year,” Lehman Brothers economist Zach Pandl uttered.
    The new minimum is less than the inflation-adjusted 1997 level of $7.02, and far below the inflation-adjusted level of $10.06 from 40 years gone, according to a Labor Department inflation calculator.

And for all the potential economic hardships that the increase will have on small businesses, there is a greater issue. What does it say about a culture where there is such a significant gap between the minimum wage and the livable wage?

That is a topic  tackled on BlogHer this week.

When I asked my 19 year old daughter about the minimum wage greaten — as a barrista she brings in more than the least part, she had this to say. " The minimum wage should be a livable wage."

TSJohnson agreed statement:

Your daughter has it right

Well your daughter said the kind of I was going to say. That basically sums it up. People can’t live on it, so quibbling over it is due vapid.

If you are a little employment owner, is the bump in the minimum wage really going to be a hardship. And, if it is, what strategies are you going to implement to adjust to this additional cost?