Locals React to President Obama's Minimum Wage Increase Proposal - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Locals React to President Obama's Minimum Wage Increase Proposal

Posted:

SALISBURY, Md.- Among the highlights of President Barack Obama's State of the Union address was a proposal to increase the federal minimum wage. It would boost wages from $7.25 to $9 per hour. The president said the move would pull millions of Americans out of poverty and help the economy, but not everyone agrees.

Locally, some people we spoke with said the increase is needed, so workers can make a living and keep up with rising costs. However, others worry about the impact on small businesses, and say the job market may suffer.

Inside the kitchen at Vinny's La Roma restaurant Wednesday, prep work was under way for the dinner crowd. Owner Vinny Bellia said times are tough for small businesses like his, and increasing the minimum wage will only make things worse.

"You can't hire more people, the tax is going to go up. You just can't do it anymore. A lot of places are closing up because of that. Especially when it goes up to $9, there will be more people closing up."

Memo Diriker, with Salisbury University's Perdue School of Business, said changing the system will yield winners and losers.

"Obviously, it's going to benefit those who are the recipients of minimum wage," he explained. "It's going to enable them to spend more, which has some positive effects on the economy. But the people who are employing them are going to have to adjust to a new reality. They're going to have to find that money."

People we spoke with are mixed about the proposal.

"I think it's great," remarked Trey Kleman of Salisbury. "I think a lot of like hourly workers, you know, there's a lot of jobs where people really don't get paid enough for the amount of work that they do."

"It would be good if people who wanted to work could be paid more, and yet at the same time, I know that small businesses are closing around here, so that could be a hindrance for them," said Margo Nolan.

Diriker said while the jobs market may be hurt in the short term, it all evens out in the end.

"Usually within a year, its effects dissipate in the economy and everybody gets used to the new reality and they adjust their prices, their services and their employment systems, and it comes to pass."

The president's proposal would raise the minimum wage by 2015, in a series of stages. That would be followed by an increase every year based on inflation.

  • Delmarvawide NewsDelmarvawide NewsMore>>

  • Second Public Hearing Brings More Opposition

    Second Public Hearing Brings More Opposition

    Tuesday, July 22 2014 11:24 PM EDT2014-07-23 03:24:04 GMT
    When Planning and Zoning held their public hearing on July 10, hundreds of people came out to voice their support and opposition to a country music festival in the Harbeson area. Approximately two weeks later on Tuesday afternoon about 100 showed up to voice their opinion, primarily in opposition. The County Council heard from dozens of neighbors who said they were staunchly against the festival, citing potential problems with noise, traffic, pollution, and crime.More
    When Planning and Zoning held their public hearing on July 10, hundreds of people came out to voice their support and opposition to a country music festival in the Harbeson area. Approximately two weeks later on Tuesday afternoon about 100 showed up to voice their opinion, primarily in opposition. The County Council heard from dozens of neighbors who said they were staunchly against the festival, citing potential problems with noise, traffic, pollution, and crime.More
  • Laurel Man Arrested for Multiple Bank Robberies

    Laurel Man Arrested for Multiple Bank Robberies

    Tuesday, July 22 2014 11:31 PM EDT2014-07-23 03:31:25 GMT
    A Laurel, Delaware man has been arrested following an investigation into multiple armed bank robberies on the Eastern Shore.More
    A Laurel, Delaware man has been arrested following an investigation into multiple armed bank robberies on the Eastern Shore.More
  • Dover Police Arrests Man With Firearm

    Dover Police Arrests Man With Firearm

    Tuesday, July 22 2014 11:30 PM EDT2014-07-23 03:30:14 GMT
    DOVER, Del.- Dover Police arrested a local man Monday morning after he was found in possession of a firearm.More
    DOVER, Del.- Dover Police arrested a local man Monday morning after he was found in possession of a firearm.More
  • Most Popular StoriesMost Popular StoriesMore>>

  • Updated: Fire Ruins Historical Hebron Church

    Updated: Fire Ruins Historical Hebron Church

    Tuesday, July 22 2014 8:43 PM EDT2014-07-23 00:43:25 GMT
    Fire has destroyed the historical St. Paul's Episcopal Church located on westbound Route 50 in Hebron.More
    Authorities are investigating a Tuesday fire that destroyed the historical St. Paul's Episcopal Church at the corner of Memory Gardens Lane and Route 50 in Hebron, Md. Preliminary damage is estimated at approximately $500,000.More
  • Two Killed in Del. Crash

    Two Killed in Del. Crash

    Tuesday, July 22 2014 11:45 AM EDT2014-07-22 15:45:19 GMT
    Delaware State Police say two Dover men were killed Monday night after the tow truck they were riding in went off the road and crashed into a telephone pole near Little Creek.More
    Delaware State Police say two Dover men were killed Monday night after the tow truck they were riding in went off the road and crashed into a telephone pole near Little Creek. More
  • Federal Appeals Court Deals Blow to Health Law

    Federal Appeals Court Deals Blow to Health Law

    Tuesday, July 22 2014 11:46 AM EDT2014-07-22 15:46:35 GMT
    A federal appeals court has delivered a serious setback to President Barack Obama's health care law, potentially derailing subsidies for many low- and middle-income people who have bought policies.More
    A federal appeals court has delivered a serious setback to President Barack Obama's health care law, potentially derailing subsidies for many low- and middle-income people who have bought policies.More
Powered by WorldNow

All content © Copyright 2000 - 2014 Worldnow and WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service